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Real Madrid reject chance to sign €120 million-rated Portuguese forward in January

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Photo by PATRICIA DE MELO MOREIRA/AFP via Getty Images

Rafael Leao is one of the hottest names on the market at the moment given his red got form. After a good start to his season at AC Milan, the youngster has impressed with the Portuguese National Team at the FIFA World Cup and is catching the eyes of suitors across the globe.

With his client clocking good numbers, Jorge Mendes sees it as the perfect time to mould a transfer for the forward and has thus offered his services to Real Madrid. According to reports from MARCA, Los Blancos put their foot down and firmly replied that they had no interest in signing the player in January.

It has been publicly known for a while now that Real Madrid will not make any additions to their team in the winter, especially with Ancelotti explicitly stating the same in his press conferences.

Now it seems all the more clear that the club will not bend even for quality players available on the market.

The 23-year-old has already scored two goals at the ongoing FIFA World Cup in Qatar with over 1.2 shots per game. Further, he has six goals, and four assists in just 12 starts for AC Milan in Serie A alone.

The player’s current contract with AC Milan sees him in Italy until the summer of 2024. Given that there is just over a year on his deal, it is the best possible time for interested parties to make the swoop for him.

However, Milan are trying to extend his contract and include a fresh release clause worth nearly €120-150 million.

It remains to be seen if Florentino Perez shows any interest in the Portuguese international in the summer, but it looks unlikely given the heavy expenditure planned for Endrick. Further, there is a feeling that Leao does not fill the exact void that exists in the Madrid-based side’s attack, given that he is a winger.

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Real Madrid News

Revealed: The blueprint behind Real Madrid’s €1 Billion revenue ambition

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Photo by FRANCK FIFE/AFP via Getty Images

As one of football’s biggest and most successful institutions, Real Madrid enjoy serious perks on the economic front. After all, they cater to a worldwide audience and thus see their remunerations come in from across borders.

The arrival of Kylian Mbappe will only serve to further grow Los Blancos’ fanbase, and with a generational squad set to dominate world football for the years to come, Florentino Perez sees a special marketing opportunity.

According to reports from SPORT, Real Madrid have thus set themselves a target to hit €1 billion in revenue and have drawn up a concrete plan for the same.

The player aspect

As a football institution, one of the most significant aspects of remuneration is the team’s direct winnings in terms of prize money. Having won the Champions League last season and with Mbappe coming in, the team is in safe hands.

Moreover, the average age of Real Madrid’s squad is just 27.1 years implies that the team has significant longevity with little change expected in personnel.

The second important aspect that the club hopes to count on is the crowd-pulling factor that such young players exert on the new generation.

Kylian Mbappe will be the face of Real Madrid’s marketing campaign. (Photo by FRANCK FIFE/AFP via Getty Images)

Real Madrid already boast 410.9 million followers on social media and have added 48.4 million just last year. Mbappe, who himself has 132 million followers across Instagram and X, will further amplify that number next season and add to the club’s followers.

It is thus clear that the Frenchman will become the face of the club and the centre for all marketing operations of Real Madrid plan.

The road to €1 billion is thus not complicated, although Perez must be wary that Mbappe is picky with the brands he endorses. Further, the distribution of image rights will be a major factor to finalise.

The new Bernabeu

Having undergone extensive renovation, the New Santiago Bernabeu will take over as the world’s highest-grossing football stadium next season and play a massive role in boosting Real Madrid’s collections. The partnership with Sixth Street and Legends will also be crucial.

Furthermore, the new venue will also serve as a massive economy generator through miscellaneous events. Apart from Taylor Swift, the club also has agreements with Karol G, Aitana, Lola Indigo and La Velada del Ano de Ibai Llanos for exclusive events.

Real Madrid plan to add extra revenue from exclusive events at Santiago Bernabeu. (Photo by Angel Martinez/Getty Images)

Needless to say, such events will serve significantly to boost the income and near the elusive €1 billion mark.

Cost-cutting

The final, yet critical manoeuvre Perez plans is to cut the costs on the wage front with a salary reduction of €0% already being made in both 2019-20 and 2020-21. That was, in fact, one of the major reasons Real Madrid stayed on their feet in the pandemic.

Player sales is another element where the men in white have worked their plan, getting rid of the older players while their market value was still high and reinvesting the cash into younger talents who can serve for at least the next decade.

The club recorded north of €800 million in income last year and the €1 billion mark is not too far off. Needless to say, the coming year could thus be special for the men in white.

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