October 21 - Office work (6 hours)

This day, I focused on the case of Cristiano Ronaldo and Juventus. The Ronaldo operation by Juventus is a clear example of this. Between the purchase cost and the salary, the purchase of an apparently overage player would not seem to have been a financially sensible operation. The "economic" aspect, on the other hand, would seem to justify it. Beyond the quality of the player, who is in any case meeting expectations and beyond the indirect costs linked to the salary increases of the other top players in the squad, we must consider the enormous visibility received by the company on a global level. Ronaldo on Instagram has 150 million followers, so his arrival has had and will have a positive impact on the technical sponsor, all the other sponsors and merchandising for years. On Instagram, the number of Juventus followers has gone from 10 million to over 30, i.e. the third team in the world on a par with Manchester United (after Real Madrid and Barcelona). Investors faced with an operation like Ronaldo's could make the mistake of confusing the "financial" impact which is typically short-term and the "economic" impact which is long-term. In the first case they see the immediate cash outflow and the annual accrual of part of the purchase cost (for the number of years of the contract). To these must be added the cost of the salary. The complex point to explain is that these costs are certain and immediate. On the contrary, the economic aspect is more intangible and difficult to quantify but can have much greater potential.