Florentino Perez : Real Madrid President, Buys Kaká, Ronaldo

The sport of football under more financial pressure after billionaire-ego of Florentino Perez puts Spanish football in more severe debt.....
Picture: Florentino Perez.
Billionaire ego, how big is it, Football super stars on their way to Real Madrid, but at what cost to the sport?

The President of Real Madrid, Florentino Perez, has spend over 225 million US dollars in just days after buying the worlds two most recognizable football strikers, and rivals are crying fowl.

Like the good old days of pre-Global Financial crisis 2008/09, billionaire Real Madrid president Florentino Perez has spent amounts equal to the GDP of small nation states in just days, buying massive soccer stars Kaka and Cristiano Ronaldo, in world record transfer fees alone.

It seems like the purchases were made like dropping small change down a storm water drain, European football executives and financial analysts are now worried what the massive transfers of the football stars to Spain might to do European and Spanish pro-Soccer.

Now Spanish football rival Barcelona FC's economic director is questioning how Real Madrid and Florentino Perez are able to spend so much money. Barcelona FC have called on President of Real Madrid, Florentino Perez, to reveal where all the cash is all coming from.
Football super strikers, Ronaldo, Kaka.....

Xavier Sala i Martin, Exectutive at Barcelona FC does not understand how Real Madrid and Florentino Perez, who have admitted to having huge debts recently, can suddenly gain access to the huge sums of cash they are now spending.

Kaka and Ronaldo have both been signed for a total of almost €160 million in the last few days alone.

"I do not know where the €300 million that Florentino Perez thinks he has for signings actually comes from," Sala i Martin told radio station, RAC1.

"Florentino Perez says he will recover that money by selling shirts but, in order to do that, he will have to sell 30million shirts. That is impossible."

Sala i Martin is stunned Madrid are able to spend so much money, given the tough global financial crisis and economic downturn.

He added: "I guess someone will have to give Florentino Preez that money and it would be good for him to explain where it will come from.

"How can it be that a football team is loaned so much money, considering the current financial crisis in the country and the policy of restricting credits that banks are currently following?

"I can assure you that we will not pay €65million for a player.

The construction magnate, Florentino Perez says he plans to finance his personal "spectacular sporting project" by adding to the club's debts of more than half a billion euros, football and financial analysts said.

News reports said that financial analysts also noted that the impact on Real Madrid FC's domestic and European soccer competitors will be far-reaching.

European financial media reported that transfer prices and wages for top football players will surge big time. The inflationary effect on moves such as the one by Florentino Perez to buy up superstars of Soccer Kaka and Cristiano Ronaldo will have ripple down effects on the market.

Research into Spanish Football shows clubs are facing financial ruin, a study published by Barcelona University professor Jose Maria Gay showed the combined debt of Spain's 20 top soccer league clubs was some 3.5 billion Euros in 2008 alone.

The latest moves by Real Madrid football club and Florentino Perez will add to the financial pressures on professional club soccer around the world.

Bio of Floerntino Perez:

Florentino Pérez Rodríguez (born March 8, 1947 in Hortaleza, Madrid, Spain) is a Spanish business man, former politician, and current president of Real Madrid of the Spanish La Liga and current president of ACS. He is most famous for ushering in the club's period of Los Galácticos.

Estimated Wealth: US $1.8 Billion.

Board Member, and owner of contruction giant Grupo ACS


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