How Juvetus will recoup the money spent on Ronaldo

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Juventus have made thier calculations and expect to recoup their investment in the biggest football star in the planet, with the club expecting a 30 percent in operating profits next season.

The arrival of Cristiano Ronaldo at Juventus will have a tremendous impact for the club, both on and off the field.

And Juve’s owners have already started to notice “Cristiano Effect”. As soon as the signing of ex-Real Madrid star was announced, the sale of shirts with “Ronaldo – 7” on the back shot up, and the first consignment of next season’s jerseys has already sold out.

It is true that that profit generated from selling jerseys is often overestimated, as ultimately the club only receives around 20 percent of the sale price. But it does serve as a clear indication of the impact the arrival of Ronaldo will have for the Juventus brand.

Juventus earnings to surge

For the 2018-19 season, Juventus’ operating profits are expected to increase by 30 percent. As rumours of Ronaldo’s imminent move to Turin intensified, the club’s share price jumped to 0.80 euros, up from 0.67 cents at the start of June, reaching 0.90 euros on July 10, the day his signature was made official.

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Another indication of the “Cristiano Effect” will be in season ticket sales. Last year, Juventus raised 27.7 million euros from season ticket holders. The average increase in the price of a season ticket will be 30 percent for next season. The club also predicts regular ticket sales to reach 71 million euros, if the club manages to reach the final rounds of the Champions League and the Copa de Italia.

Sponsorhip contracts and social media

Furthermore, Juventus will possibly now be in a position to renegotiate upwards their sponsorship contracts with Adidas, Jeep and Cygames, as well as with regional partners in Africa, America and Asia.

Lastly, Ronaldo will give a big boost to Juventus’ presence on social media. Since his move was confirmed last week, Juventus’ Instagram profile, for example, has gained 1.4 million followers.

It is true that what happens off the pitch will ultimately depend on what happens on it. But at the moment, there is every indication that Juventus can expect to generate huge profits from their new star.

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