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Football transfer market is following India’s stock market

Football Transfer

India’s stock market is going only one way – up. Every year market is going up and investors are still bullish about the market. It goes same about football transfer market and it’s going up every season as well. Indian stock market’s fundamentals don’t support the prices of the stocks, but India’s good macroeconomics and investors increasing liquidity keeps market bullish. If we talk about football transfer market, it also tells the same story.

Some football players do have rare talents, but their transfer price doesn’t justify their fundamental values. But, football’s growing popularity and Europe’s richest clubs liquidity keeps growing with burgeoning cash injection by their businessmen owners. And the football transfer market keeps achieving the new heights.

PSG’s chase of Neymar over with €222m

Last season, Paul Pogba’s £89 million transfer price makes him world’s most expensive player, but he only hold the crown for one season. Neymar took the crown away from him with his £198 million move to PSG, which is more than double what Manchester United paid for Pogba.

Few years ago, £50m used to be a galactic signing and now £70m become an average price tag and £100m is benchmark to be a good player. Manchester United signs Everton’s Romelu Lukaku for £75m, whereas Chelsea goes for £70m’s Alvaro Morata.

Neymar has already set the bar high with £198m move, and still Real Madrid is eager to invest £200m in Kylian Mbappe. Philippe Coutinho and Paulo Dybala are valued more than £100m by their respective clubs Liverpool & Juventus.

It’s not only strikers or call blue chips in investment terms in which clubs are ready to invest heavily. Medium Caps or midfielders are not far behind in terms of values. Paul Pogba costs Manchester United £89m last season, and there are players in £70m category lined up. Marco Verratti, Dele Alli, Kevin de Bruyne, Koke, James Rodriguez, N’Golo Kante, Isco, Saul Niguez and many new arrivals are ready to lined up in £70m category.

Small Caps or defenders were used to be cheap few years back, but David Luiz transfer to PSG and then a return to Chelsea made them stars as well. John Stones costs Manchester City £50m last season, Kylie Walker arrived to City in this transfer window with £50m transfer price as well and there are many others who are ready to join £50m club. David Alaba, Jerome Boateng, Marquinhos, Alex Sandro, etc. may cost more than £50m for a buying club.

Large Caps, Mid Caps and Small Caps are all on bullish run in Indian market with favorable macroeconomic conditions and rising liquidity in the market. And football transfer market is bullish with clubs’ increasing businessman ownership. Clubs like AC Milan & Inter Milan were facing battle to survive till last season, and under new Chinese ownership they are tapping the best talents.

PSG backed by Qatari owner have already announced their arrival in the big league. Neymar’s acquisition says all about their big plans and their intentions to win everything in Europe. His 198m move will be justified in his performances or not is hard to predict, but Paris Saint-Germain is surely the team to watch out for next few seasons.

Football transfer market keep following India’s stock market, the Bull Run is still own. Sir John TempleTon famously said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” India’s stock market fundamentals don’t justify the stock prices, but it keeps growing because of optimism and still far away from euphoria moments. Where football transfer market lies is hard to say, but I’ll still leave it to skepticism.

 

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