David Beckham
Comm 423
The Value of David Beckham
Dik Yi Tse (230052113)
Ryan Darmasubrata (230055322)
The purpose of this paper is to evaluate one of the most phenomenal transfers in the football world. The transferred of David Beckham from Manchester United to Real Madrid has becoming the talk of not just football fans but the financial expert for the last 2 years. Unlike most transfers, the David Beckham transfer has revolutionized player transfer in the football world. It became the standing point on how football player is not valued according to their skills on the field but rather on their skills outside the field. The paper will evaluate the cause, the reasons and the effect of the transfer based on both technical and financial aspects. In order to evaluate the transfer based on its financial aspect, we will use analytical theory of production and competition between firms.
[pic] [pic]
Variable cost satisfies the following formula: [pic]
[pic]
Return function:
[pic]
C: variable cost
S: unit price of the product
K: fixed cost σ: rate of diffusion r: discount rate
T: duration of the facility
With the formulas above, we try to justify the returns of the football clubs under different environment. From the calculations, we can see the change of revenue for the football clubs between fixed costs at different levels of market size.
David Beckham David Beckham is an English footballer, widely regarded as the biggest icon in the sport. He currently plays for Real Madrid and he is the captain of England national team. David Beckham is especially noted for the quality of his crossing and the ability to hit free-kicks particularly from long-range and swinging corners. He is also famed for his celebrity lifestyle trappings, media attention and marketing potential. Early on in his career Beckham secured a number of lucrative sponsorship deals including Brylcreem, Adidas, Vodafone (which ended in July 2005) and Diesel. Despite the USA 's
The Value of David Beckham
Dik Yi Tse (230052113)
Ryan Darmasubrata (230055322)
The purpose of this paper is to evaluate one of the most phenomenal transfers in the football world. The transferred of David Beckham from Manchester United to Real Madrid has becoming the talk of not just football fans but the financial expert for the last 2 years. Unlike most transfers, the David Beckham transfer has revolutionized player transfer in the football world. It became the standing point on how football player is not valued according to their skills on the field but rather on their skills outside the field. The paper will evaluate the cause, the reasons and the effect of the transfer based on both technical and financial aspects. In order to evaluate the transfer based on its financial aspect, we will use analytical theory of production and competition between firms.
[pic] [pic]
Variable cost satisfies the following formula: [pic]
[pic]
Return function:
[pic]
C: variable cost
S: unit price of the product
K: fixed cost σ: rate of diffusion r: discount rate
T: duration of the facility
With the formulas above, we try to justify the returns of the football clubs under different environment. From the calculations, we can see the change of revenue for the football clubs between fixed costs at different levels of market size.
David Beckham David Beckham is an English footballer, widely regarded as the biggest icon in the sport. He currently plays for Real Madrid and he is the captain of England national team. David Beckham is especially noted for the quality of his crossing and the ability to hit free-kicks particularly from long-range and swinging corners. He is also famed for his celebrity lifestyle trappings, media attention and marketing potential. Early on in his career Beckham secured a number of lucrative sponsorship deals including Brylcreem, Adidas, Vodafone (which ended in July 2005) and Diesel. Despite the USA 's
References: Chen, J. 2005. The Physical Foundation of Economics: An Analytical Thermodynamic Theory. World Scientific, Singapore.