Boca Juniors Essay Example for Free

Boca Juniors EssayTrading players have become a profitable piece of business for association football familiaritys globally especially in proven leagues in southern Ameri whoremonger continents. Its had become an immanent practice to ensure cash flows remain healthy from the export of interior(a) bred talents which is abundant in soccer crazy countries like genus Argentina, Brazil and Uruguay. In the case of Boca Juniors, the club electric chair is faced with an enviable position where there is an option to sell players at the peak of their game for a nice profit. Both players, Gago and Palacio are key players in the team with a string of accolades in their neat stint there. Their performances have generated a lot of excitement and have caught the eyes of Europes largest clubs such as Barcelona, realistic Madrid etcIn a business where the playing lives of soccer players are limited, it makes sense to trade them at their flower to the highest bidder. My recommendation to Macri is to offload the older Palacios to FC Barcelona while keeping the younger Gago and work uping on his let (with more playing time, titles) and market value. While losing a key player may be disruptive, Macri can derive many get aheads from the cash generated to the tune of USD4m. (17.5% monomania) Among the tangible benefits1. The proceeds from the sales event give befriend tightlipped the gap on the loss and perhaps push Boca to profitability in fiscal 2007. Also, among the immediate benefit is the decrease in wage bill Boca had to increase Palacios salary significantly if he had stayed. This is an eventful consideration as Macri will be leaving Boca to run for mayor of the city of Buenos Aires, he will like to leave a lasting legacy and his decision may prove to be essential to the impression that he leaves the club in a dependable state with the necessary support social organisation he developed and a team that is capable to challenge for honours.2. Expand La Cantera Boca Jrs has a good youth policy and are known to foster many of the worlds top players i.e. Tevez, Caniggia and Riquelme. The surplus funds can be utilize to expand the existing facilities at the La Cantera Youth academy expansion to cover branch academies in satellite cities or organize more coaching clinics crosswise Argentina. 3. Staff additional scouts casting the scouting net wider across all 18 cities in Argentina (incl Buenos Aires). This is critical to feed the academy with talent and nurturing them to become exceptional players. The excess can be used to fund scouting headcount.4. Enhance La Bombonera additional funds to be used to build a hospitality wing or upgrade facilities to include more VIP boxes and preferred position. Expanding the stadium seating may be considered merely the costs may exceed the contribution from the player sale. (it has already been overstated previously in 1996 to 57,000 seats). Although not critical, the renovation could help generate more funds through and through ticketing or tours. 5. Investment fund track record the sale will improve yield and performance of the fund. With the sale of Palacio, the private investors stand to earn up to 65% on the profits. This could amount to USD14.3m (65% of USD22m), the highest sale amount to be recorded by the fund. This could in turn be reinvested to purchase new players (outright purchase to replace the striker) to help compliment their efforts in churning new players through the youth academy.Moreover, there are also nonphysical benefits to this arrangement such a sale could be aligned with their heritage of promoting players to the first team through their youth system. It is a chance for new and younger players to breakthrough.As for Gago, he can stay and build on his value he is young and could spend another 2-3 years to build his credential (soccer players prime between 21-25 years old). His value will continue to grow if Boca is successful on the field du ring this period. Besides, significant Madrid has shown admiration and made their intentions known a transfer down the road seems inevitable (player himself indicating interest) but Boca could use this to their advantage by pitting Real Madrid up against other clubs in a bid to price him up from their initial offer of USD26m. Gagos contract is also without encumbrance and his ownership structure is not as complicated as Palacio. All proceeds from future sale could be booked as 100% profit for Boca.All these benefit could be captured without much impact to revenues. I anticipate that ticket sales, television rights, membership fees or marketing revenues will continue to grow testify by the strong following it has in Argentina. Boca fans are known to be dedicated and loyal to club due to the steep heritage being one of the most successful clubs in history of soccer 22 Argentine League championships, 16 international titles including 5 Copa Libertadores and 3 Intercontinental Cups . The Intergenerational following and homespun(p) origin (Xeneize) appeals to the working class and has an affinity of close to 40% of soccer fans in Argentina.