The prodigal son turned back. In the final days of the frantic football transfer window, Manchester United have completed the coveted signing to welcome Cristiano Ronaldo back to his old club.



The excitement over his return to the Premier League is running high - and for good reason. There are only a few sports stars on the planet who can command this kind of global attention.


But how would a professional player like Ronaldo affect the business of a major football club? Where are the key financial wins from sports superstars?


In terms of football transfer fees, Ronaldo returned to Manchester United at a relatively cheap price. He signed a two-year contract (with an option to extend) for an initial fee of £12.86m, with the potential for an additional £6.85m in performance-related bonuses.


It mostly depends on his age. The 36-year-old is coming to the end of his career and while his performance levels remain high, the transfer fee reflects that. This performance factor is reflected in his salary, which is around £385,000 a week


Adding these figures together roughly puts United's total cost at around £60m. The club has also demonstrated shrewd business strategy by trying to spread the payments over five years.


In return, United hope that Ronaldo's skills will increase the club's chances on the pitch. But the bigger picture is the business advantage he can bring.


Of course, the power of his personal brand (he's widely known as "CR7" after his initials and preferred player number) - although he denies an ongoing civil lawsuit against the rape allegations against him With this (criminal charges ruled out) - immediate expansion of the club's international reach and appeal.


Ronaldo currently has 5 billion followers on social media compared to Manchester United's 140 million, while his signing announcement sparked 12.5 million likes on Instagram. Turning this coverage into cash is critical.


A Numbers game

Ronaldo has boosted Manchester United's shirt sales to record levels. But the first to benefit was Adidas, the German jersey maker that paid a license fee to reproduce the famous red shirt. Having said that, Manchester United's current deal with Adidas is already the biggest in football, and the Ronaldo effect should see club executives push up prices when they renew.


United's broader business operations should also see a significant boost. Sponsors will be keen to work with Manchester United, with the club likely to make an additional £30m in commercial arrangements over the next few years.


While it's hard to predict exact numbers, we can look to Ronaldo's last club, Juventus, for guidance. The Portuguese moved there from Real Madrid in 2018 and the Italian club's business grew considerably over the next two years.


Of course, it wasn't all due to Ronaldo, but he did help. While he was in the team, Juventus renegotiated with Adidas and Jeep and signed a new contract with Japan's Konami, who cited the "Cristiano Ronaldo effect" as the main reason behind the partnership.



At the same time, United have already generated enormous value from commercial deals, and Ronaldo will help boost those numbers. The team and players have been described as a "match made in heaven" and the club's share price has soared before Ronaldo kicked back in Manchester.


Long-term gains are expected over the next few years, and if he helps the club win trophies, the numbers could be mind-boggling. These numbers will no doubt be studied by Europe's top clubs as they desperately search for the next Ronaldo and Messi, with Real Madrid's recent unsuccessful attempt to sign Kylian Mbappe from Paris Saint-Germain. (He's expected to be the next big move in January 2022.)


The entire football industry is focusing on a changing market where the relationship between the game and young people appears to be deteriorating. Recent research found that 40% of respondents aged 16-24 in seven countries (including England, Poland and Brazil) were not interested in football, raising concerns about a "missing generation" of fans.


So clubs are looking for new ways to get involved. Anything that expands the reach of the youth group is of great interest to club owners, so Ronaldo's social media presence is another issue.


The connection between fans and favorite players is also increasingly important, especially in emerging markets. In India, for example, nearly a third of fans say player loyalty affects their support for clubs.


The return of the CR7 is clearly lucrative for United. The club will get new fans and new deals - maybe even a shiny new trophy if he scores and wins.