Can we compete with Manchester City?

[fredbob]

We sell out a bigger stadium than Man City's every week, that wouldn't pay off a £50m transfer I'm afraid. People always say this in this situation - how much does the fee have to be exactly before they stop "paying for themselves"?

 

But it'd be a worlwide signing, would it be that hard to envisage 2 millions people worlwide have a nufc ronaldihno shirt? Assuming the average price is about £25. That a real crude calculation but the theory is there, not to mention the benefits that we couldnt measure such as press, and advertisements. Even if shirst sales brought in a fraction of the transfer outlay you can effectivley wipe that off the price of the tranfer and that;d be how much we were paying, which would be a simlar outlay to someone like Turan.

 

So if we were to take £20m shirt sales wourlwide, that would leave us with a player costing us £30m in transfer fees and wages for about 4/5 years.  Bare in mind Owen has cost us approx £50m for the equivalent 5 years, and i dont think it'd be as bad as people are making out.

 

Not sure if any of that makes sense.

[Ericz]

We sell out a bigger stadium than Man City's every week, that wouldn't pay off a £50m transfer I'm afraid. People always say this in this situation - how much does the fee have to be exactly before they stop "paying for themselves"?

 

But it'd be a worlwide signing, would it be that hard to envisage 2 millions people worlwide have a nufc ronaldihno shirt? Assuming the average price is about £25. That a real crude calculation but the theory is there, not to mention the benefits that we couldnt measure such as press, and advertisements. Even if shirst sales brought in a fraction of the transfer outlay you can effectivley wipe that off the price of the tranfer and that;d be how much we were paying, which would be a simlar outlay to someone like Turan.

 

So if we were to take £20m shirt sales wourlwide, that would leave us with a player costing us £30m in transfer fees and wages for about 4/5 years.  Bare in mind Owen has cost us approx £50m for the equivalent 5 years, and i dont think it'd be as bad as people are making out.

 

Not sure if any of that makes sense.

 

That is assuming that those 2 millions people worldwide are not existing purchasers of Newcastle United FC shirt annually, in other words, they are fresh purchasers and we are tapping into an untapped market. On the contrary, fans who bought Ronaldinho's Newcastle United FC shirt will not purchase shirts of other Newcastle players  because they are substitute goods. Will you buy a second or third Newcastle United FC shirt if you already possessed one this season (which originally they would in the event that Ronaldinho does not sign for Newcastle United FC)? A large majority will not.

 

Confusing? The essence is tapping into untapped markets and not existing tapped markets.