The Value of David Beckham
Dik Yi Tse (230052113)
Ryan Darmasubrata (230055322)
The purpose of this paper is to evaluate one of the most phenomenal transfers in the football world. The transferred of David Beckham from Manchester United to Real Madrid has becoming the talk of not just football fans but the financial expert for the last 2 years. Unlike most transfers, the David Beckham transfer has revolutionized player transfer in the football world. It became the standing point on how football player is not valued according to their skills on the field but rather on their skills outside the field. The paper will evaluate the cause, the reasons and the effect of the transfer based on both technical and financial aspects.
In order to evaluate the transfer based on its financial aspect, we will use analytical theory of production and competition between firms.
Variable cost satisfies the following formula:
C: variable cost
S: unit price of the product
K: fixed cost
σ: rate of diffusion
r: discount rate
T: duration of the facility
With the formulas above, we try to justify the returns of the football clubs under different environment. From the calculations, we can see the change of revenue for the football clubs between fixed costs at different levels of market size. David Beckham
David Beckham is an English footballer, widely regarded as the biggest icon in the sport. He currently plays for Real Madrid and he is the captain of England national team. David Beckham is especially noted for the quality of his crossing and the ability to hit free-kicks particularly from long-range and swinging corners. He is also famed for his celebrity lifestyle trappings, media attention and marketing potential. Early on in his career Beckham secured a number of lucrative sponsorship deals including Brylcreem, Adidas, Vodafone (which ended in July 2005) and Diesel. Despite the USA's uneven acceptance of soccer, Beckham's recognition in the USA is strong enough to enable him to appear in print and television advertising for various sponsors, including Gillette razors. He has become more well known in North America since the success of the British film Bend It Like Beckham, about a British Sikh girl who idolizes David Beckham and harbours ambitions of being a football player. David was born on May 2, 1975 in Leytonstone, London to Ted and Sandra Beckham. David's parents were Manchester United supporters and he accompanied then to many of the games. He signed for Manchester United as a trainee in July 1991 and he was instrumental in helping the club win the FA Youth Cup in May 1992, scoring in the second leg of the final against Crystal Palace. His Premier League debut eventually came at home to Leeds United on April 2, 1995. Partially as a result of injuries to key starters, David established himself in the first team during the 1995/96 season. David's match-winning performances during 1996/97 helped United to win another Premiership title and reach the semi-final of the UEFA Champions League. On a personal level, he was voted Young Player of the Year and second in the overall Player of the Year poll. Manchester United's 1997/98 season was one to forget as they finished second to Arsenal in the League, lost to Barnsley in the FA Cup and were knocked out of the Champions League quarter-finals by Monaco. David enjoyed a memorable moment, when he was selected for England's World Cup Finals squad. He’s been a team member ever since. Beckham captained England for the first time in a friendly match in Italy and retained the armband for the friendly with Spain and the World Cup qualifiers against Albania and Finland, against whom he scored an important goal at Anfield. Beckham made his 85th appearance for England in 2005 and is expected to captain the team at the 2006 World Cup in Germany. If so, he would become only the sixth England player to...
References: Chen, J. 2005. The Physical Foundation of Economics: An Analytical Thermodynamic Theory. World Scientific, Singapore.
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