Daily Archives: May 11, 2011

Manuel Neuer transfer circus, presented by Schalke 04

Schalke 04 and Bayern Munich currently negotiate the conditions for Manuel Neuer’s transfer from Schalke to Munich. What comes to the surface is a ridiculous circus created by the “want-to-be-someone” officials from Schalke. The facts are on hand, Neuer has one more year contract with Schalke and with that this year is the last chance to cash in some major money. Bayern Munich offered $25 million and Schalke declined. Bayern Munich, in a second offer, expressed willingness to pay $29 million plus another $5.5 million should they win a title with Neuer. Schalke’s comment: “Now we have a normal conversation”.

Bayern has in the meantime extended the contract of Hans-Joerg Butt, Bayern’s current number one. In other words, while they would like to have Neuer, and Neuer would love to transfer to Munich, Bayern would not really need him. In theory, Bayern and Neuer could wait it out for a year. Neuer stays in Schalke, and they (Schalke) “look into the blue moon” comes next year when the contract is up.

For Schalke to say “now we have a conversation” is quite ridiculous, they can’t afford it, not on the money side and not with other credit, especially not with the escapades to their name. Bayern has already announced that they are not willing to pay a “moon price” and negotiations could end any time. In that case, Schalke would continue with Neuer, try to get a result in the next season, and then wrap Neuer up and send him to Munich as a gift. Almost $35 million would flow down the river. Schalke, while making some good money in the Champions League, is broke and in need of every single penny they can get. Major other income sources are not in sight and some adjustments to the roster are necessary in order to play for a Champions League seat in the 2012/13 season.

Schalke’s attitude might be considered as clever negotiations by some, however, the truth is this is a circus they can’t afford. Besides that, having to sell a player like Manuel Neuer is a homerun that can be accomplished by a first grader. There is no need to display “big gun power” when there is nothing than wet powder. This deal is not to demonstrate negotiation abilities, it is a deal to earn a lot of credit in business and soccer, not necessarily with an immediate dollar sign, but with lots of potential down the road.

Bayern Munich is a club with an outstanding record, not only in soccer and in the business world, but also on the human side, if that is still of any value for the business minded. Bayern wants Neuer and will pay what is necessary, and is somehow justifiable, not because Schalke is saying so, but because they will not leave Neuer hanging. Those that remember the van Bommel deal from last January, will understand what I mean. One of the things they have to learn in Schalke, and in other clubs, sometime you leave a few bucks on the table as an investment in other deals that will come up down the road. It is one of the reasons why Bayern is Bayern, or “Mia san mia” (we are who we are) as they say.

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Stocks fall because commodities fall?

US stocks lower as commodities slide

This is what Main Street will not understand. Commodities, overheated, fall and stocks are sliding as well. There is not much sense in this theory. Gold is a more or less useless investment, except for those that have it. The oil companies will have less profit, but everyone else has an advantage of falling oil prices.  Are stocks falling because so called market makers are at work?

US trade gap widens. Is that a bad thing?

US trade gap widens – Marketwatch 05/11/2011

Exports rose – Meaning US goods are bought elsewhere

Import rose – Meaning people spend money.

In the current situation this doesn’t sound bad to me. We should take a look at this as a glass half full, rather than half empty, or even worse as some do.