This article is to explain why I believe Ronaldo is overpriced. There are multiple factors for this, Media Buzz, Performance Buzz & future potential. Please read on.
Reasons to suggest Cristiano Ronaldo is overpriced on Football Index
Ronaldo is a fantastic footballer, some say the best in the world. If this is the case, why has Ronaldo not swept away the competition, earning buzz dividends one after another?
Simple. Ronaldo has a ‘selfish’ play style, he’s not often in the build up play but demands the ball towards the end of the attack, hoping to score.
He does score lots, but scoring isn’t enough to win Performance Buzz unless you score hat tricks. Ronaldo is missing out on lots of the bonus points on offer, so he has far less chance of earning dividends than his competitor, Messi.
For the last 3-4 years during the summer transfer period, we have read stories about how Ronaldo wishes to return to Old Trafford… shortly after he signs a new contract with Real Madrid. Media Attention has always been rife during these periods.
Much was the same this year, with Ronaldo stating he wanted to move back to England as he’s fed up with life in Spain. The only difference here was that the Media were not as interested as previous years, maybe they’ve also had enough of him using the media to get a new contract.
If this is the case, Ronaldo will be less valuable as he has less chance of receiving dividend payouts. Sure, he will get media attention if Real Madrid wins the champions league, or if he wins the Ballon D’or, but is it worth holding a £5 player for a couple of payouts?
Cristiano’s age also gives us something to consider. How much longer does he have left at the very top of his game?
Realistically, if I was going to be investing over £5 per share in a player, I would want a minimum of 3 years of top performances. With Ronaldo, I feel this is very risky. Does he have 2-3 years left? He’s a brilliant footballer but he has recently moved from the wing to the centre forward position, the first moves older players make, as they run less!
Investing in Ronaldo
Ronaldo is the fifth most expensive footballer on Football Index, he’s also the player which has received the 5th highest Media Buzz dividend payouts, so there’s a definite correlation.
He does seem like a bargain when you look at players in his price bracket. Alexis Sanchez is 10p more per share, so investors would definitely look more towards Ronaldo who is more of a household name.
Romelu Lukaku is another player who’s struggling for Performance buzz, he is 50p less than Ronaldo, again, most traders would be willing to pay 50p more to have the Ballon D’or winner.
However, Ronaldo is the oldest player out of the Top 5 on Football Index. Messi, Kane, Neymar, Sanchez, Ronaldo.
I think Ronaldo being 32 is the only thing which has kept him from reaching the heights players such as Harry Kane has, who sits at £6.50.
As Ronaldo gets older, his price will decrease as traders are going to be cashing in on him before he announces retirement, so I would definitely be wary of investing over £5 into a player which could cause a price crash, at any point.
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Ronaldo is an amazing footballer, I wish he would have joined Man Utd a few years ago, but now it’s too late. If we sign Ronaldo at 32, it’s not a step forward as it’s not a purchase for the future, like Griezmann,Dybala and Harry Kane would be.
I struggle to see why Ronaldo is £5.45, he offered great media buzz in previous years but now the media seem focused on the next generation. It probably hasn’t helped that Neymar has broken the transfer record and Man Utd signed Lukaku, as this will take up most of the back pages in the sports articles!
He’s a great player, but a definite risk as he is 32 years old.