Yes I would. Growing up in South America, I know I would have LOVED to be signed by ANY European team as a kid, specially a team like Real Madrid. If this kid really is as good as they think he will be, he is pretty much set for life if everything goes smooth ( no injuries etc).
Lionel Messi, the best player in the world at the moment, was signed by Barcelona when he was young, not as young as this kid but young. He had medical issues and Barcelona took him under their wing after no teams in Argentina wanted to pay for his expensive treatment.
"He showed all the signs of having a promising footballing career ahead of him but at the age of 11 he was diagnosed with a growth hormone deficiency that required expensive treatment.
His parents could not afford it but after some tentative signs of awareness in Messiâ??s talent from Barcelona, they decided to move to Spain. Messi tried out for Barca and the club was so impressed it agreed to pay for his medical treatment."
I read the article and this isn't anything spectacular. The kid only received an one year contract and doesn't get paid. The family is already living in Madrid for three years. Isn't that comparable with elementary school students starting to play football? In europe we don't have many school sports team, so many clubs have huge youth teams.