The Economics of Sport
  • Sports Economics
  • About
  • Workshop
  • Media
  • Selected Publications
  • Book Reviews
  • A Primer on Gaelic Games
  • Upcoming Events
  • Education
  • Resources & Links
  • Data

Ronaldo Not Bale Still the Most Expensive

3/8/2013

 

By Robbie Butler

If reports in Spain and England are to be believed it looks like Gareth Bale is set to become the most expensive player of all time. Real Madrid have reportedly offered Tottenham Hotspurs €97.7 million (£85 million) for the Welsh winger. This bid is €3.7 million more than the €94 miilion (£80 million) given to Manchester United in 2009 for the services of Cristiano Ronaldo, making Bale the most expensive player of all time.

Well, actually no.

Transfers are quoted in, what economists call, nominal prices. Comparing the €94 million spent on Ronaldo in 2009 with the €97.7 million bid for Bale does not take account inflation occurring during the four-year period. If one does account for inflation a ‘real price’ is calculated. 

You'll also notice there is just under €4 million euros between the bids for Ronaldo and Bale despite the difference being £5 million pounds! This is due to exchange rate movements and a depreciation in the pound sterling relative to the euro. In simple terms, the pound now buys you less euro, or the reverse, the euro will buy you more pounds,
 
Using European Union (27 country) inflation data it is possible to compare real and nominal transfer fees to see just who the most expensive player of all time is. The tables below take the five most expensive transfers of all time into consideration,

Picture
Picture
Ronaldo still leads the way as the most costly player of all time in real terms. Zidane’s transfer to Real Madrid in 2001 is a close second. Despite there being €19 million in the difference between the price of Zidane in 2001 and Ronaldo in 2009 the real difference is just over €3 million.

If Bale is sold for the reported £85 million pounds, he will become the most expensive player ever in nominal terms, however in real terms, this will place him third in the list of the most costly footballers of all time.

Comments are closed.

    Archives

    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013

    About

    This website was founded in July 2013.

    RSS Feed

    Categories

    All
    American Football
    Athletics
    Baseball
    Basketball
    Behavioural Economics
    Boxing
    Broadcasting
    Competitive Balance
    Cricket
    Cycling
    Darts
    David Butler
    Declan Jordan
    Drugs
    Ed Valentine
    Epl
    Expenditure
    F1
    Fifa World Cup
    Finances
    Funding
    Gaa
    Gaelic Games
    Gambling
    Game Theory
    Gary Burns
    Geography
    Golf
    Greyhound Racing
    Guest Posts
    Horse Racing
    Impact Studies
    John Considine
    John Eakins
    League Of Ireland
    Location
    Media
    Mls
    Mma
    Olympics
    Participation
    Paul O'Sullivan
    Premier League
    Regulation
    Research
    Robbie Butler
    Rugby
    Simpsonomics
    Snooker
    Soccer
    Spatial Analysis
    Sporting Bodies
    Stephen Brosnan
    Swimming
    Taxation
    Teaching
    Technology
    Tennis
    Transfers
    Uefa
    Ufc
    World Cup
    Wwe

Related

The website is not formally affiliated to any institution and all of the entries represent the personal views and opinions of an individual contributor. The website operates on a not-for-profit basis. For this reason we decline all advertisement opportunities. 

Contact

To contact us email sportseconomics2013@gmail.com or find us on Twitter @SportEcon.