Trading players have become a profitable piece of business for soccer clubs globally especially in proven leagues in South American continents. It's had become an essential practice to ensure cash flows remain healthy from the export of home bred talents which is abundant in soccer crazy countries like Argentina, Brazil and Uruguay. In the case of Boca Juniors, the club president 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 short stint there. Their performances have generated a lot of excitement and have caught the eyes of Europe's largest clubs such as Barcelona, Real Madrid etc
In a business where the playing lives of soccer players are limited, it makes sense to trade them at their prime to the highest bidder. My recommendation to Macri is to offload the older Palacios to FC Barcelona while keeping the younger Gago and building on his experience (with more playing time, titles) and market value. While losing a key player may be disruptive, Macri can derive many benefits from the cash generated - to the tune of USD4m. (17.5% ownership) Among the tangible benefits;
1. The proceeds from the sale will help close 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 Palacio’s salary significantly if he had stayed. This is an important 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 good state with the necessary support structure 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 world’s top players i.e....
Please join StudyMode to read the full document