Real Madrid has a tendency, or, more like a need, to employ the best players in the world in their team. In the process, the club spends absurd amounts of money. They will routinely spend tens of millions of dollars just for squad players.
Recent signings Toni Kroos and James Rodriguez are hardly squad players, but it shows how far the team is willing to go to be the best. Both signings undoubtedly help the team improve (they would help any team) but they don’t make the most sense tactically. In coach Carlo Ancelotti’s favored 4-3-3 formation, Luka Modric, Xabi Alonso and Angel Di Maria were favored as the midfield trio. Admittedly, the team sold Di Maria, but with Kroos’ addition, the team will now field an overcrowded midfield group. A group that includes Modric, Alonso, Kroos, a healthy Sami Khedira and last summer’s splurge signings Isco and Asier Illarramendi. That’s a lot of midfielders who, if you combine their transfer fees, could fix a country’s economy.
While Kroos’ signing gives Madrid even more quality in the middle of the park, the team’s signing of Rodriguez produces questions. Lots of them. James is a superbly talented player, and his skill probably merits a place on a team like Madrid’s roster, but tactically it is a bit tough to fit him into the current team.
James Rodriguez can play as an attacking midfielder, a true No. 10 or he can be deployed out wide as a winger. In the current 4-3-3 that Ancelotti employs, there is no way on Earth Rodriguez displaces either Gareth Bale or Cristiano Ronaldo. It simply won’t happen. And to be fair, no one in the world is going replace Madrid’s two most expensive players. The team could alter the 4-3-3 and play him in his favored position as a traditional No. 10 with two pivot midfielders sitting behind him. This could provide deadly results offensively, but it would also limit the number of central midfielders Ancelotti can use. With a huge glut of them already, to accommodate Rodriguez he may have to sacrifice one of them, hence pushing someone further down the totem pole and potentially off the team all together.
This is where the hoarding strategy comes into play. Real Madrid is able to sell off star players in order to make room for star players. Or they simply sell off their highly priced squad players to other clubs where those players will play prominent roles. While it may not be the most fiscally responsible thing in the world, it helps the team avoid the swinging axe that is Financial Fair Play.
Last summer the team spent over 150 million euros (a little over 200 million US dollars) bringing Bale, Isco, Illarramendi, Daniel Carvajal and Casemiro into the fold. Normally a team spending that kind of capital would be hit with FFP sanctions. However, unlike fellow big spenders PSG and Manchester City, Madrid made some cash to offset that absurd sum. They unloaded Mesut Ozil to Arsenal for 50 million euros and sold striker Gonzalo Higuain to Napoli for 40 million euros. Combine those with the sales of Raul Albiol, Jose Callejon (both also to Napoli) among others and Madrid made nearly 130 million euros from outgoing players.
This allows the team to recoup some of the money they spent, but more importantly it allows them to escape those FFP sanctions. PSG wasn’t able to avoid the axe as they spent nearly 140 million euros on four players. Of the players they sold or let go, they collectively brought back 26 million euros.
City, on the other hand, spent north of 90 million pounds, while recouping a little over 15 million pounds on player sales.
These may not seem like serious issues, but they have impacted both teams’ current offseason spending. PSG, who doesn’t want to cross the line with FFP having already been sanctioned, tried and failed to acquire Di Maria from Madrid without paying a deservedly large sum of money. This is mainly due to the fact that they don’t want to, and can’t spend too much money.
Meanwhile, City has lost a number of spots on their team as part of the sanctions, and thus their international slots are full. Because of this, the team had to sell Spanish midfielder Javi Garcia in order to acquire long rumored target and French center back Equiliam Mangala.
The penalties only get worse for clubs like PSG and City if they continue to breach FFP guidelines. Real Madrid seems to have figured it out. The team buys star players. Should the star players fail to adapt or a bigger, better star comes along, then the incumbent stars get the boot. Because of this, Madrid escapes Financial Fair Play penalties all the while being one of the best, if not the best, club in the world.