Real Madrid made a smart move in picking up Cristiano Ronaldo. This is a great example of “spending money to make money”, and I am supposing some astute projections of profit . Merchandising is such a big component of any sports franchise. Not only does it generate revenue, but it is also the gift that keeps on giving-advertising for the club walking around every day. As stated in the article they are predicting that throughout his six year contract his market value will be recovered in merchandising alone. Factor in the ticket sales he generates as well and it is a very good deal.