Real Madrid spending raises eyebrows in soccer

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The moves mean "that our product is still a good product. If this is the game of the people, they need stars," Blatter said Friday ahead of the Confederations Cup in South Africa.

Jorge Valdano, Real Madrid's club director, explained the team's philosophy Wednesday in speaking about the Kaka transfer, the day before the Ronaldo deal came to light.

"We are spending the money because it is worth it. We are spending it because we will make this money back, and make it back with interest," Valdano said. "Signing these types of players means that our sponsorship, television and sportswear contracts will rise spectacularly."

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Valdano said the club hoped to make nearly $100 million each year from the Kaka purchase, in part by convincing sponsors like Coca Cola, Audi, Adidas and Telefonica, that their investment in the club will be profitable.

Real Madrid's splash out comes after one of the most demoralizing years in its long history of success. Rival Barcelona took the prestigious Champions League trophy, the Spanish league and the Spanish Copa del Rey, all in one year, becoming the first Spanish team to capture all three titles.

Valencia, which came in sixth place in the Spanish league, couldn't pay their players on time earlier this year because of financial difficulty. Several lower league teams in England have also teetered on the brink of bankruptcy.

Still, some point to Barcelona's success as evidence that money isn't enough to guarantee winning.

While Barcelona is no charity case — its budget is second-only to Real Madrid's in Spain — it has never spent money as prolifically. Seven of the starting 11 players on Barcelona's championship team came up through their youth system — including superstars like Lionel Messi, who was signed at the age of 11 without the need for a massive transfer fee.

Many of Real Madrid's stars have been purchased from other clubs.

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