How A French Soccer Club Made A $US50 Million Profit Off World Cup Phenom James Rodríguez

Real Madrid has made official the anticipated transfer of World Cup star James Rodríguez.

The transfer fee is ~$108 million according to the New York Times, which would be the fourth largest transfer fee ever.

That is a staggering sum that not only makes Real Madrid even stronger, but also means a nearly $US50 million profit for Rodríguez’s former club, AS Monaco.

Just a little over one year ago, Monaco purchased Rodríguez from Portuguese club Porto for $US60 million. With Monaco, the attacking midfielder signed a 5-year deal that paid him as little as $US1.6 million for his one season with Monaco, meaning a net gain of close to $US50 million for the club based in France’s Ligue 1.

That salary is also why Real Madrid had to pay such a large ransom.

Rodríguez still had four years remaining on his contract with AS Monaco. With his newfound fame, Rodríguez was certainly worth considerably more to Monaco than what they were paying. So Real Madrid had to come up with a number that was enticing enough for Monaco to let go of its World Cup jewel.

In the end, Real Madrid gets their player, Monaco gets a huge profit, and Rodríguez gets a nice raise.

Everybody wins. Well, everybody except Manchester United, who reportedly could have purchased Rodríguez in 2010 for just $US8.5 million.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.