Real Madrid’s Brazilian investment plan has proven profitable

Real Madrid’s recent transfer policy has been quite clear: they target young, promising players at a reasonable cost, with the possibility of paying higher sums if the potential is significant. The aim is to develop these talents within the club so that they can ultimately contribute to the team both in terms of sporting and financial success, either on the field or through transfers.

There are several examples of this approach. Martin Odegaard, for instance, arrived at the age of 16 for less than three million euros, spent time on various loan spells, and when he was eventually transferred to Arsenal, the sale brought in more than 40 million. While Madrid wanted him to succeed with the first team, Odegaard was not patient and sought an exit. Nevertheless, the operation turned out to be a success for all involved.

Brazil, a real Madrid love affair

The Spanish giants are not dogmatic in their search for talent; they are open to players from different countries. They have targeted talent from various nationalities, including English (Bellingham), French (Tchouameni and Camavinga), and Ukrainian (Lunin). However, there is one country that has captured the club’s attention in a special way, and that is Brazil.

While it’s not groundbreaking to scout for prospects in the nation with the most World Cup wins in history, the Brazilian market is vast, with a population of nearly 215 million, it does requires careful selection. Juni Calafat, Real Madrid’s head of international scouting, plays a pivotal role in this regard. He also recommended the signing of other South American players in the squad (e.g., Valverde), but he has a special focus on the Brazilian market.

Madrid’s Brazil: success on or off the pitch with

Vinicius, Rodrygo and Militao valuations

The Brazilian market has proven to be highly profitable for Los Blancos, with the three Brazilians in the squad already showing a significant increase in their valuation (the difference between their purchase price and current market valuation on Transfermarkt) of nearly 200 million euros. Vinicius, who cost 45 million, is now valued at 150 million, representing a 105 million euro increase in value. Rodrygo has seen his value rise from 40 to 100 million euros, an increase of 60 million euros.

Eder Militao, acquired for 50 million euros, is now valued at 70 million euros, marking a 20 million euro increase. In total, these three players have contributed to a 185 million-euro wealth generation for Real Madrid, with the obvious caveat that we know the real transfer market doesn’t work like that.

Casemiro and Danilo timely sales

However, there have also been players who left the club and left a positive impact on the balance sheets. Casemiro, signed from Sao Paulo in January 2013 for six million euros, went through a stint at Porto before returning to form a midfield trio with Kroos and Modric. He helped Real Madrid win four Champions League titles and, when he decided to move to Manchester United, his transfer brought 70 million euros into the club’s coffers. Others, like Danilo, arrived and departed for similar fees (signed from Porto for 31.5 million euros, sold to Manchester City for 30 million).

Reinier and Lucas Silva disappointments

Not all signings have been successful, but the setbacks have been relatively minor considering the successes. Reinier, who arrived from Flamengo in 2020 for 30 million euros, has struggled to make an impact, with three years of loan spells at Borussia Dortmund and Girona. Currently on loan at Italian club Frosinone, he hopes to rediscover his form, but his value has declined significantly, now being worth only two million, a decrease of 28 million euros from what Real Madrid paid. Another notable case was Lucas Silva, who was signed for 13 million euros, played half a season for the team, demonstrated he couldn’t meet the required level, and went on several loan spells until his contract expired, with no return to Madrid.

Endrick and Ancelotti for 2024

In the club’s youth academy, there are several more prospects acquired with minimal outlays. The next promising talent is Endrick, set to join Real Madrid in the summer, with a transfer fee of 35 million paid to Palmeiras (with an additional 25 million contingent on performance-based objectives). Even before his arrival, the effect is already noticeable: when Madrid signed him, he was valued at 20 million, and his current market value stands at 25 million on Transfermarkt. Signs are positive.

While these successes in nurturing Brazilian talents have been significant, they also come with a potential downside: Real Madrid is currently closely followed in Brazil, much more so than Barcelona. The club’s successes have piqued the interest of the Brazilian Football Confederation, who are making substantial efforts to secure Carlo Ancelotti as their next national team coach.

From Brazil, it’s confidently stated that the deal is finalized to begin next summer, but the coach himself denies it, saying, “They are just rumours.”

In Real Madrid, no doors are closed: his contract runs until 2024, but there is no reason to believe that a renewal is out of the question. Ancelotti prioritizes Real Madrid, and if he doesn’t continue, he knows that Brazil is interested in his recipe for success.