By John ST

There is a price for everything. Sir Alex Ferguson declared indignantly in December that he wouldn’t sell the Real Madrid mob a virus, not to mention his crowning jewel, Cristiano Ronaldo, but when an astronomical £80 million check is waved enticingly, principles can be swayed.

Last week, Real Madrid shocked the football community with their audacious raids in the transfer market. The arrival of Kaka and Cristiano Ronaldo, both winners of Ballon d’Or and FIFA Player of The Year, cost a cool £150 million.

Coupled with two other record fees , Luis Figo (a £37m purchase from Barcelona) and Zinedine Zidane (a £47m deal with Juventus), that is £220m on just four players. To put things in perspective, George Gillett and Tom Hicks paid just under that amount for Liverpool FC in a leveraged buyout.

A team player?

Obscene money which distorts fair play, UEFA President Michel Platini says… but he ain’t see nothing yet. Rumors are rife that another six players (David Villa, David Silva, Xabi Alonso, Maicon, Franck Ribery, Raul Albiol) are on the way and the budget may balloon to more than £262m, easily eclipsing the lavish £217m spree by Roman Abramovich at Chelsea from 2003-2004.

If you developed queasy feelings of deja vu, it is understandable. After all, this is Florentino Perez’s second attempt at creating the Galacticos. Instead of recruiting world-class talents every summer during his first experiment, Perez has fast-tracked his burning ambition to see Madrid’s football recover “their place in the world.”

When Florentino Perez came into power at the Santiago Bernabeu in 2000, Real Madrid had just won the European Cup but not one to settle for mediocrity, he embarked on a breathtaking vision to assemble the best talents the world has ever seen.

This time round, Real Madrid finished nine points behind Barcelona and was eliminated from the Champions League at the first knockout stage for the fifth successive season. The abject failures stood in stark contrast to the fortunes of their arch rival.

Never before has a treble (La Liga, Champions league and Copa del Rey) been achieved in Spanish football, yet Barcelona scaled the pinnacle in Pep Guardiola’s debut managerial season – at Madrid’s expense too after a humiliating 6-2 derby defeat. Real Madrid had no reply to the attacking guile and midfield dominance of Barcelona. Each goal was a stab in the heart and rendered an impressive run of 17 victories in 18 games irrelevant.

What if Barcelona go on to achieve the unprecedented honor of retaining the Champions League title next season? Given the intense political, cultural and football rivalry between both clubs, the echelons of power in this fabled institution cannot stand aside and witness the ultimate glory of Barcelona.

Like any true-blue Real Madrid fan, Florentino Perez is anxious about the decline in the club’s prestige and desires the passion of being a Madridista to return. Soon after his re-election as President of Real Madrid, he set about the familiar task of breaking the bank and recruiting super players to level the playing field. His clarion call for Real Madrid to “do in one year what we would normally do in three,” signals his intention to deliver within a tight schedule.

Florentino Perez has a clear mandate to do the necessary and why not, after all, he is a proven success. You don’t buy a bankrupt construction company, and transform it into a multi-billion conglomerate, ACS, by ignoring project schedules and making empty promises.

Perez is particularly suited to the wheeling and dealing of business and football as he possesses acumen, charisma, political connections, enterprise, and persistence. Unfortunately, these are qualities which his counterpart, Ramon Calderon, was found to be sorely lacking.

There is little love lost for Ramon Calderon who had been accused of vote buying and skimming money from the vault when players were purchased. He was no slouch in spending money but his signings hardly qualify as the cream of the crop and no Spanish players were purchased.

Calderon’s saving grace was to claim some credit for the purchase of Cristiano Ronaldo. He hinted that the dirty work was done during his time: “Last season United decided not to do it because they thought it was too early and instead everyone agreed to do it this season. He [Ronaldo] wanted to come, he said that many times.”

Now, even if Perez took credit for Calderon’s work, there is no denying his ability to make things happen. His mantra being that money is no object and deficits don’t matter. Los Merengues can feel a twisted sense of pride and satisfaction to outbid Russian mogul Abramovich on all his targets, doing what Manchester City sheiks cannot by buying Kaka while they only have Gareth Barry to show for their ambitions next season, and finally Alex Ferguson, manager of one of the richest club (in terms of revenue), being forced to sell his prized asset.

To be sure, money is not the only consideration. Perez conceded that Real Madrid cannot match the financial prowess of Chelsea and Manchester City as they don’t have rich people to put money into the club. Footballers are attracted like moth to candlelight because of Madrid’s rich tradition of European and domestic triumphs as well as Perez’s personal charms.

You can see Perez’s brilliant mind at work with his creative financing and daring projections of future revenue streams for Real Madrid. Last time he wiped out Real Madrid’s debts in one fell stoke by selling off the club’s training ground for £298m to the city council. He has cash left over from clearing debts and use it to finance transfers.

This time, he managed to secure a credit line with Catalan bank, La Caixa. Against the backdrop of mounting bad loans for Spanish banks and limited access to credit, one has to marvel that Real Madrid has sponsors lining up to facilitate their transfer orgy.

The fact that Real Madrid is too big to fail certainly helps. The corridors of power in Spain will not risk the social and political fury of pushing Real Madrid into bankruptcy, thus any banks holding the debts of Real Madrid are relatively safe.

Barcelona’s economic director, Xavier Sala-i-Martin, is baffled by the financial logic behind Perez’s grand Galaticos project . “I do not know where the 300m euros that Florentino Perez thinks he has for signings actually comes from. He says he will recoup it by selling replica shirts and so he will have to sell 30 million of them. That is impossible.”

“How can it be that a football club has so much money to spend, bearing in mind the current economic situation in the country and the politics of credit restriction in place in all banks?”

But Perez saw no need to answer such trivial questions. His gamble on expanding revenue streams were successful in the past. According to the club, Madrid’s annual income had doubled in three years from 2000 to 2003. David Beckham’s four-year stay in Spain boosted sales of shirts and memorabilia by 137%.

Real Madrid overtook Manchester United by £32.5m as the richest club in the world in terms of revenue in 2008. They are keen to improve on last year’s meagre £102m in commercial revenue and £16.8m for reaching the first knock-out stage of the 2007-08 Champions League. In fact, the arrivals of Kaka and Cristiano Ronaldo sent number crunchers into overdrive. A fresh report predicted an additional £107m a season to Madrid in revenue from the pair.

La Liga’s policy of allowing clubs to negotiate individual contracts with broadcasters is a boon to Real Madrid. The more talents Real Madrid amassed, the more bargaining power it has in jacking up its TV revenue. The club also has the advantage of owning their own stadium and earned £80m in matchday revenue in 2007-08.

It is futile to argue with Perez as statistics have bore out the fact that the Galacticos policy is indeed successful in generating commercial benefits and reviving marketability of Real Madrid brand.

As Mark Twain once remarked that there are three kinds of lies: lies, damn lies, and statistics. So Perez there were few critics when Perez defended the galacticos policy as a model that feeds itself. He considered “Zidane was a cheap signing as his arrival allowed new commercial deals and new arrivals.”

Moreover, the fans have derived great entertainment by seeing a dream team in action. Football can be intoxicating when it is played beautifully, with fluid passing, silky dribbles, cheeky back-heels, heart-stopping goalmouth actions and extraordinary goals.

There is little wrong in giving the fans what they desire, solid entertainment for 90 minutes and then leaving the stadium with a smile on their faces. The entertainment value is well worth the money. Ask Sepp Blatter.

However, it is debatable if the Galacticos policy is the right way to attain football supremacy. Or is it another “insane” attempt (where insanity is defined as repeating the same procedures and expecting different results?)

Notwithstanding Real Madrid’s glamor and irresistible appeal, an aura of invincibility has not permeated the air. We all know how the first version of the galacticos fared. Let’s do a quick review.

Real Madrid purchased four winners of the Ballon d’Or: Luis Figo, Zinedine Zidane, Ronaldo and Michael Owen. However, their awards were not achieved in a Madrid shirt. The implication being that players peaked before arriving or the concept of the whole being greater than the sum of its parts did not materialize.

Initially, the policy paid off, when Real Madrid won 2 league titles and 1 Champions League title. Zidane who had already unleashed his talent as Juventus playmaker, gained a higher profile by orchestrating the Madrid midfield and scoring impossible goals. The Brazilian Ronaldo was a goal scoring machine, terrorizing defences and hitting the back of the net for fun, thanks to the effervescent Zidane.

Then there was Figo on the right flank, who could leave any defender stranded with his dribbling skills. Roberto Carlos was scoring 30 yard screamers regularly. Makelele, arguably the best defensive midfielder, also showcased his defensive ability and his short, simple passes to link up the potent strike force.

With Figo and Zidane in Real Madrid’s pulsating midfield, it was easy to see why Real Madrid created chances effortlessly and scored so many goals. Unfortunately, good times don’t last and cracks started to appear.

When another superstar, David Beckham, arrived (who left Manchester United as Alex Ferguson doesn’t appreciate the media circus), jealousy and selfishness abound. The egos in the dressing room were slighted that this pin-up footballer is now the center of attraction. Yes, Beckham serves up accurate long range boomers and swerving free kicks, but he has little else to offer.

Vicente Del Bosque (coach of Real Madrid at that time) was losing control of the Galacticos of Real Madrid, and he cannot satisfy everybody all the time. He has to rest certain players in order to refresh the squad or adjust his strategies as circumstances dictate, while an Englishman played more than he deserves because of TV revenue and sponsorships.

Casillas: All by himself with no defense.

It was a tough act to follow and a recipe for disaster. Players like Zidane and Figo consider it an affront to sit on the bench and disliked being played out of position. But that is what the squad had to do to accommodate David Beckham. To fit in all the Galacticos, the versatile players usually bear the brunt of the changes.

Figo is a right winger while Zidane, playing in the middle, is the soul of the team. With Beckham alternatively given the center or right midfielder role, you can imagine the hostile feelings being bottled by the existing Galacticos when their favorite spots are up for grabs.

Perez was oblivious to the simmering discontent and continued to buy attacking, attractive players who had little defensive abilities which lead to a weak backbone of Real Madrid. That policy saw its greatest irony in 2003 when Real Madrid plumped for David Beckham rather than Ronaldinho because the former is more appealing while the face of buck-toothed Ronaldinho may degrade Madrid’s brand and make them a laughing stock.

Well, we all know what an attacking talent Ronaldinho was. He proved his mettle by leading the resurgence of Barcelona to two straight La Liga titles and a Champions League Title as well as humiliating England in the World Cup. David Beckham can sell shirts but an attacking talent he is not. Period.

Unfortunately, the joke on Perez doesn’t end with the Ronaldinho saga. Sameul Eto’o was a Real Madrid player, but Perez sold him to Mallorca, who then profited by selling Eto’o to Barcelona where he would go on and become the top striker in the world. Perez’s argument was that Real Madrid already has Ronaldo and Raul as its strikers, the same reason he gave for not signing Ronaldinho, saying that Real Madrid already has Zidane in that position.

The attacking talents which Perez let slip from under his nose because he yearns for established stars, was not the biggest failing of the Galacticos policy. I will say Perez’s reluctance to pay world-class defensive players high salaries was the foremost reason which eventually lead to the destruction of the team.

When Claude Makelele demanded an improved contract after David Beckham came in and disrupted the wage structure, Perez showed him the door, together with Vicente Del Bosque. The arrival of Beckham and the departure of Makelele to Chelsea marked the downfall of the Galacticos.

After the sacking of Del Bosque, the internal strife in Real Madrid worsen and they could barely function as a footballing unit. Although Real Madrid still had the best attacking players in the world, they solid lacked defensive cover and even if David Beckham did not slag off his defensive duties, he has his limits.

The many frustrations eventually saw Luis Figo left the club to join Inter Milan after he was not given a two years contract by Real Madrid which he wanted. Michael Owen also left in the same season (2004-2005).

Eventually Perez also realized that, the galactico policy was not paying off and after throwing his beloved club into a turmoil, he stepped down as the president because of the decline in the team’s on-field performance seemingly hitting an all time low in the 2005-2006 season, exiting in the UEFA Champions League to Arsenal F.C. in the round of 16 without scoring a goal in either leg.

Lessons must surely have been learnt from the failure of the original galácticos, even if the only mistake Pérez has admitted to publicly was walking away. Does Perez now realize that it is more important to build a balanced team with attack and defense, and not just to sign players because they have mass appeal or that they had won football awards. The best could be behind these players and that is why their former clubs release them.

To be sure, the city of Madrid loves both superstar signings Perez had made. Kaka and Cristiano Ronaldo served as the essence of their former teams’ identity. Dubbed the ‘golden boy’ of Milan, Kaka was the crowd favourite and it seemed that Milan has parted with its football ambitions with the sale of Kaka.

Cristiano Ronaldo was the ultimate entertainer at Manchester United who played with panache and creativity. Like Beckham before him, Ronaldo coupled athletic superiority with a sex appeal to create an image that became very much a brand in its own right.

Both Ronaldo and Kaka are technically gifted players who can change a game in one moment of brilliance. La Liga is an environment where technical players thrive while Serie A is too stifling and Premier League clubs are often too physical and love their long balls.

In terms of sheer talent and ability, both are surely amongst the top five players in the world, although each is a year or two removed from his top form.

Last year, Ronaldo scored an astronomical 42 goals in all competitions – a figure of such extraordinary exception, it will be all but impossible for the Portuguese winger to repeat the feat. But this year, niggling injuries led to a slight dip in Ronaldo’s form and it is still uncertain how the player will recover from the sports hernia with which he is currently encumbered.

Meanwhile, Kaka suffered his own bout with injury this past season and the Brazilian struggled to find consistency on the pitch, although, just like Ronaldo, he did finish the campaign strongly.

With injuries in mind, Kaka’s age (27 years) does present an added concern, but even in his late twenties, the Brazilian is one of the fastest players in the sport, especially when running with the ball at his feet.

Ronaldo is stronger and more street-wise than Kaka after thriving in the Premier League. Depending upon how Manuel Paellegrini aligns them, they could play in very close proximity to each other, with Ronaldo playing high up on the wings or functioning as a fox in the hole forward while Kaka plays as an attacking midfielder.

The Brazilian national side has no shortage of strikers but Kaka has been used to combine with Robinho to superb effect. Real Madrid Fans will salivate at how the the Brazilian will pair with Cristiano Ronaldo. But there is the pertinent question of whether Kaka and Ronaldo can work together seamlessly?

Already, Cristiano Ronaldo refuses to share the limelight with Kaka and wants a separate occasion to be unveiled as a Real Madrid player. He also demanded outrageously higher wages to distinguish himself from Kaka. Ronaldo will earn a flat wage of £6.8m a year plus substantial add-ons and image-rights payments.

Kaka’s agent (his father) cannot be described as subtle when it comes to asking for money, so you can expect the wage structure in Real Madrid to be tested like never before, especially when Kaka outperform Ronaldo in the first season.

Also, have Real Madrid bolstered their defensive midfield spots and who will replace Iker Casillas should he get injured? Xabi Alonso would be a great addition – because he is disciplined and can run a game from deep. Playing him next to Lassana seems to be the natural choice for Pellegrini.

Right now, Real Madrid have an attacking midfield of Robben, Kaka, and Ronaldo but you will be hard pressed to see any of these players making a tackle.

While Real Madrid adopts a system of being the richest bidder who pluck the blossoming fruit off the mother tree but Barcelona painstakingly cultivate its own seedlings.

When it comes to building a team, Barcelona win hands down. They won the treble inspired from Guardiola’s philosophy of attacking possession football and with a largely homegrown squad in which 7 players of the starting 11 were products of their youth system (Víctor Valdés, Carles Puyol, Gerard Piqué, Xavi, Andrés Iniesta, Sergi Busquets, and Lionel Messi).

If I were to choose between building up players from youth teams or buying the end products, I will go for Barcelona’s system. I keep my fingers crossed on whether Real Madrid can spend its way to football supremacy.

Much has also been made on the tectonic shift in power to Spanish football. On the international level, Spain already rank as one of the finest team. In the Champions League, Barcelona demolished former champion, Manchester United in Rome, which was a further proof of the quality of Spanish football.

For the past few years, Premier League teams have consistently proceeded beyond the quarter-finals and ensured a strong English presence in the semi-finals and finals. The Premier League also basked in the glory of being the most watched league among Asian TV viewers.

However, the transfer moves by Perez could severely disrupt the Premier League standings. We will know the answer soon if the Champions Leauge will feature another four Premier League clubs or will the world’s attention just revolve around Barcelona and Real Madrid.

In any case, next season will promise lots of fireworks. Stay tuned for more updates.