Real Madrid Brazilian investment plan proves profitable

Real Madrid's focus on developing young talents, particularly from Brazil, has proven highly profitable, with significant increases in player valuations.

Real Madrid's transfer strategy has been crystal clear: they aim to acquire young and promising players at a reasonable cost, with the potential to pay higher sums if the player's talent is exceptional. The club's objective is to develop these talents within their ranks, allowing them to contribute to both the team's sporting success and financial gains, whether it be on the field or through transfers.

There have been several instances where Real Madrid's approach has proven successful. One such example is Martin Odegaard, who joined the club at the age of 16 for less than three million euros. Although Odegaard eventually sought an exit and was transferred to Arsenal, the sale brought in over 40 million euros. Madrid had hoped for Odegaard to succeed with the first team, but the operation turned out to be a success for all parties involved.

Real Madrid is not limited to a specific nationality when searching for talent. They have targeted players from various countries, including England (Jude Bellingham), France (Aurélien Tchouaméni and Eduardo Camavinga), and Ukraine (Andriy Lunin). However, one country that has particularly caught the club's attention is Brazil.

While it may not be groundbreaking to scout for prospects in a country with the most World Cup wins in history, the Brazilian market is vast, with a population of nearly 215 million. Therefore, careful selection is crucial. Juni Calafat, Real Madrid's head of international scouting, plays a vital role in this regard. He has also recommended the signing of other South American players, such as Federico Valverde, but his focus on the Brazilian market is particularly noteworthy.

The Brazilian market has proven to be highly profitable for Real Madrid, with the three Brazilians currently in the squad experiencing a significant increase in their valuation. Vinicius, who was acquired for 45 million euros, is now valued at 150 million euros, representing a 105 million euro increase in value. Rodrygo's value has risen from 40 to 100 million euros, a 60 million euro increase. Eder Militao, purchased 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 wealth generation of 185 million euros for Real Madrid.

However, there have also been players who left the club and made a positive impact on the balance sheets. Casemiro, signed from Sao Paulo for six million euros, went on to help Real Madrid win four Champions League titles before his transfer to Manchester United brought in 70 million euros. Other players, like Danilo, arrived and departed for similar fees, further contributing to the club's financial success.

Of course, not all signings have been equally successful. Reinier, who arrived from Flamengo for 30 million euros, has struggled to make an impact and has been loaned out multiple times. His value has significantly declined, now worth only two million euros. Lucas Silva, signed for 13 million euros, also failed to meet expectations and went on several loan spells before his contract expired.

Real Madrid has also acquired promising talents through their youth academy, often with minimal costs. The next talent set to join the club is Endrick, who will arrive in the summer for a transfer fee of 35 million euros. Even before his arrival, his value has already increased from 20 to 25 million euros. Signs are promising for his future success.

While Real Madrid's success in nurturing Brazilian talents is commendable, it has also led to increased attention from Brazil. The Brazilian Football Confederation is actively pursuing Carlo Ancelotti as their next national team coach, as Real Madrid's successes have captured their interest. Ancelotti, however, denies any finalized deal and states that they are mere rumors. Although Ancelotti's contract with Real Madrid runs until 2024, the possibility of a renewal cannot be ruled out, as he prioritizes the club. If he does not continue, Brazil is eager to secure his recipe for success.