When assets are over-priced systemic failure follows

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The FT has noted:

Real Madrid’s world record £80m deal for Cristiano Ronaldo, Manchester United’s Portuguese winger, will destabilise European football, Michel Platini, Uefa’s president, has warned.

The Spanish club’s offer, accepted by United on Thursday, comes days after they signed Kaka from AC Milan for €68m ($96m, £58m) and provides further evidence of the financial muscle that separates Europe’s elite teams from the rest.

Mr Platini said “This chain of events underlines the question of fair play and of the balance in competitive football. Uefa works steadily with the clubs to put in place a system and rules that will allow the stabilisation of the financial foundations of football.”

The problem is those who think they’re at the top of the pile forget that there is a pile just beneath them.

And when they do the evidence shows that the pile collapses.

Watch out all who love football: there is nothing but bad news in this deal.

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