We May Make A Lot Of Money So We Can Spend A Lot Of Money

In the high profile world of professional soccer. It has now become win at all costs , literally from a financial aspect. And nowhere is this more self evident than on the continent of Europe and in particular with regards to the countries of , Italy, Spain and England. Where for all sense and purpose the most successful and high profiled clubs are either owned by conglomerates or billionaires.And two of the most prominent clubs in question are that of Manchester United of England and Real Madrid of Spain. The two clubs between them dominate the landscape that is European soccer. And between them their success is unparallelled domestically or on the international front. So much so , that if they’re not part of the conversation for domestic or international honors at the club level. Then there’s a feeling that there’s something wrong with the game itself.

Cristiano Ronaldo then of Manchester United is seen here with the team's coach Sir Alex Ferguson not long after the player had signed with the team in 2003. picture appears courtesy of afp/reuters Christopher McIlvhaney .........................

Manchester United as a club, has had unprecedented success as of late. It has to be said that in the hands of their present owners the Glazer family. They’ve been burdened with what’d be deemed a manageable amount of debt ($1.20bn). But in light of the precarious financial situation of many banks around the world and the economic plight of so many countries acrossthe globe. For some teams this is very much a precarious position to be in. And for the fans and owners Manchester United indeed the situation is no different from any other public or private company.

Malcolm Glazer far right seen here with sons Joel (left) and Bryan. The family's sporting business interests includes the ownership of the NFL's Tampa Bay Buccaneers and the English Premiership League's Manchester United. picture appears courtesy of ap/photo/ Mike Nugent ................

The Glazer family are also the owners of the Tampa Bay Buccaneers of the NFL. And ownership is presided over by the patriarch Malcolm Glazer. With three of his five sons, Bryan , Joel , Avram all running the family’s sporting interests alongside their father. It can be said that this is truly a family business.

From left to right Avi, Bryan and Joel Glazer. All three sons are involved in the sporting business interests of the family's holdings. picture appears courtesy of ap/photo/ Frank Wilmott .............

The family bought the team outright in 2005 , after financing the purchase by leveraging the assets of the team. That takeover saddled the club with an overall debt in excess of $1.5bn at the time ,when one takes into account the servicing and financing fees that goes along with such a financial maneuver. And to date the club still exhibits debt of $1.00bn on its balance sheet. The fact that on appearance very little of the orignal debt seems to have been pared down. The feeling is that the family will either look to refinance much of that debt in order to make the appropriate payments to their creditors . Or quite possibly look to offload some the tangible assets by way of the players on the squad. Whichever way you tend to look at the situation the economic storm that can curtail any professional sports franchise’s ambition is no different from that for a large multi-national to a small company.

In the case of Real Madrid and the mere fact that they’ve seen their most ardent and fierce rival Barcelona FC attain the country’s highest domestic honor in lifting the La Liga trophy, having won the league title. And then go on to defeat Manchester United 2-0 in the top European club competition (Champions League) this season,did not at all sit well with the team.

Florentino Perez the newly re-elected club President of Spanish soccer giants Real Madrid. This time around Perez has reasserted his influence by going on an unprecedented spending spree. He's spent in excess of $225m to aqcuire Cristiano Ronaldo from Manchester United and AC Milan's Brazilian star Kaka. There are now questions being raised as to how these deals were financed. As the purchase of a player can only be made from the fund readily available to a team through its own resources. Monies from an outside party cannot be used in such an endeavor under UEFA and the Spanish Soccer Federation rules. picture appears courtesy of afp/reuters / Esteban Pedroza ...........

The club has seen a great deal of unrest and turmoil . But none more so than is now taking place. With the newly re-elected team President Florentino Perez looking to make his mark, reacquaint himself with the fans and the team once again. The unprecedented spending to acquire new players is taking a torpedo like presence about it.