Endrick loaned to Lyon, Real Madrid's "South American Semi-Finished Product Strategy" suffers a major setback

Written by Han Bing In just a year and a half, Brazilian prodigy Endrick has fallen from the heights — as Real Madrid’s largest investment in their “South American semi-finished product strategy,” he spent nearly the entire season on the bench before being loaned to Lyon, aiming to change the course of a "complete loss." Endrick is just 19 years old and still has the potential to become a star, but at present, Real Madrid does not have space for his growth.

In the summer of 2024, carrying the aura of a Brazilian treble winner, Endrick joined Real Madrid full of ambition. After the transfer agreement was reached at the end of 2022, Real Madrid kept him at Palmeiras for 18 months to develop. Endrick triggered 50% of the transfer add-ons (12.5 million euros), including scoring over 20 goals (2.5 million euros per 5 goals), and being called up and starting for the Brazilian national team (1.25 million each). Before joining Real Madrid in summer, he also helped his home club win the São Paulo State Championship again as a farewell gift.

Unexpectedly, Endrick's growth after joining Real Madrid has not been as smooth as his two compatriot predecessors. Although he scored on his La Liga and Champions League debuts and netted goals in four consecutive Copa del Rey matches, the arrival of Mbappé crowded the attacking line. Coupled with poor team results, Ancelotti intended to nurture him slowly, but Endrick did not get enough playing time at Real Madrid. He originally hoped to prove himself at the Club World Cup in summer, but unfortunately missed it due to a hamstring injury before the La Liga season ended.

This summer, Real Madrid spent 63.2 million euros to sign Argentine rising star Mastantuono, who is favored more by new coach Alonso. By mid-September, Endrick returned from injury but had no opportunities. Before coming on as a substitute against Manchester City in the Champions League on December 10, Endrick had only played 11 minutes all season. As early as late October, Real Madrid and Endrick’s team were already discussing his future. The Brazilian youngster hopes to secure a starting spot to fight for a place in next year’s World Cup. Real Madrid ultimately chose to loan him out, and among many suitors, only Lyon guaranteed a starting role.

Brazil's "Globo Esporte" revealed the details of Endrick’s contract: Real Madrid has invested over 60 million euros in him. Besides the fixed 35 million euro transfer fee, 12 million euros in taxes, and 12.5 million euros in variable clauses triggered during his time at Palmeiras, Endrick only activated 955,000 euros in variable fees during his one and a half years at Real Madrid. This includes 280,000 euros for 8 goals scored (35,000 euros per goal or assist) and 675,000 euros for playing time (a total of 9 starts or at least 45 minutes per match, 75,000 euros each).

Endrick’s variable transfer fees also include these activation clauses: if Real Madrid wins La Liga, Endrick must start at least 8 times (500,000 euros) or appear 18 times (1 million euros); if Real Madrid reaches the Champions League semifinals, Endrick must start 3 times (500,000 euros) or appear 7 times (1 million euros); if Real Madrid wins the Champions League, Endrick must start 4 times (1 million euros) or appear 8 times (2 million euros). Personal honors include winning the Golden Boy award (1 million euros), finishing in the top three for Ballon d’Or or FIFA Best Player (1 million euros), and winning the Ballon d’Or or FIFA Best Player award (2 million euros).

Endrick’s loan to Lyon is only for half a season and does not include a purchase option. If there are changes in Real Madrid’s head coach or forward line next season, Endrick will have another chance to restart. After all, Real Madrid has invested over 60 million euros in transfer fees alone, plus agent commissions and salary reaching 70 million euros. Endrick must at least bring back a Champions League trophy for the "Galactic Fleet" like Vinícius and Rodrygo to justify the investment.

Real Madrid’s "South American semi-finished product strategy" began in summer 2017 by signing 17-year-old Vinícius for 45 million euros, followed by Rodrygo for the same price in summer 2018. Both trained one year at their Brazilian clubs before joining Real Madrid. After three seasons of development, they both exploded in the 2021/22 season, helping the team win the Champions League and La Liga double. In 2023/24, they repeated the double crown, with Vinícius’s value rising from 35 million to a peak of 200 million euros in 2024, earning the FIFA Best Player award, and Rodrygo’s value increasing from 40 million at signing to a peak of 110 million euros (July 2024).

Endrick was the heavy investment following the success of Vinícius and Rodrygo in Real Madrid’s continued "South American semi-finished product strategy." At the end of 2022, the club spent 72 million euros to sign the 16-year-and-5-month-old Endrick: 35 million transfer fee + 25 million euros in add-ons, plus 12 million euros in taxes.

Among Brazilian export players’ transfer fees, Endrick ranks second only to Neymar (88.4 million euros). Unexpectedly, he has become the first failed investment in Real Madrid’s "South American semi-finished product strategy." Of course, Endrick’s contract with Real Madrid runs until summer 2030, giving him four and a half years to prove himself.