Cristianio Ronaldo will earn more than £170m over the course of his new five year contract at Real Madrid. It makes him the highest paid forward in the world and is worth the equivalent of £660,000 a week before tax.
It is worth noting that almost half his salary will go straight into the cash starved Spanish treasury. Of his annual gross salary of £34.4m, £16.8m will be deducted in tax.
Ronaldo will get more than double the terms of his previous contract and this is much more than Gareth Bale is receiving, even though Bale cost Real Madrid £5m more than Ronaldo.
Cristianio Ronaldo will earn more than £170m over the course of his new five year contract at Real Madrid. It makes him the highest paid forward in the world and is worth the equivalent of £660,000 a week before tax.
It is worth noting that almost half his salary will go straight into the cash starved Spanish treasury. Of his annual gross salary of £34.4m, £16.8m will be deducted in tax.
Ronaldo will get more than double the terms of his previous contract and this is much more than Gareth Bale is receiving, even though Bale cost Real Madrid £5m more than Ronaldo.
How can such sums be justified in economic terms? What has to be remembered is that the returns come off the pitch as much as on it, not just increased revenues from sponsors, but also global sales of merchandise. In particular Real president Florentino Perez is determined to build the club’s global media revenues.
Pedro Garcia of the Universitat Internacional de Catalunya recently commented in relation to Real Madrid: ‘Hiring the intangible talent of footballers is, of course, a risky investment. But there are important synergies from associating an individual’s brand and sooner or later it leads to economic returns.’