When preparing the budget account for the following:
Madrid is considering :Acquiring two megastars at an estimated cost of EUR 38 million each in transfer fees and an annual salary of EUR 10 million and trading one megastar player already on the roster
Please take into account the relevant considerations (e.g. jersey sales, on-field performance, etc.). The immediate economic implications of on-field performance are as follows:
Advancing one more round in the Champions League increases Real Madrid’s revenue by EUR 5 million due to additional ticket revenue and increased participation in the UEFA marketing pool. Winning the Champions League produces a EUR 4 million increase over qualifying for the semifinal
Advancing one more round in the Champions League increases salary expenses by EUR 1 million and winning the competition will trigger bonus payments to players for EUR 15 million.
Create a budget incorporating your player and performance decisions with the info in the case.
If any assumptions need to be made, clearly describe the assumption and your underlying rational in your submission.