Real Madrid remains the world’s largest revenue generating football club, according to the latest Football Money League from Deloitte. Manchester United and Barcelona finished second and third in the report, which ranks the 20 biggest football clubs in the world based on revenue. Each of the top three clubs generated revenues in excess of EUR 300 mln.
Bayern Munich returns to the league leaders for the first time in five years, climbing three places to fourth and is joined in the top five by Chelsea.
“Whilst Real Madrid’s 4% revenue growth in 2007/08 is more modest than recent years, the club has now doubled its revenues since 2002 and enjoys a lead of EUR 41 mln over Manchester United,” said Dan Jones, Partner in the Sports Business Group at Deloitte.
“With the club having announced that it is budgeting for revenues of EUR 400 mln in 2008/09, it will be difficult for rivals to replace Real at the top of the Money League next year,” he added.
“Manchester United’s on-pitch success in winning the Premier League and UEFA Champions League contributed to significantly increased revenue for 2007/08, although the depreciation of the Pound against the Euro means they remain in second position. All bar two of our Money League clubs generated increased revenue in 2007/08 and each club in the top 20 generated more than EUR 100 mln in revenue in that season.”
Real Madrid increased revenue by EUR 15 mln (4%) to take their total to 366 mln. Manchester United’s performances on the pitch in 2007/08 resulted in a GBP 45 mln (21%) increase in revenue to GBP 257 mln (EUR 325 mln). Third placed Barcelona grew its revenue by EUR 19 mln (6%) to EUR 309 mln.
The impact of the exchange rate, and the depreciation of the Pound against the Euro has adversely impacted on the number and ranking of English clubs in the top 20.
“If the exchange rate value of the Pound had not depreciated, there would have been nine, rather than seven English clubs in the top 20 and Manchester United would have topped the Money League ahead of Real Madrid,” Jones added.
In addition to the seven English clubs, Germany and Italy have four representatives each, Spain and France two clubs each, whilst Fenerbahce become the first Turkish club to feature in the top 20 since the creation of the Money League rankings in 1996/97.
“Bayern Munich is the biggest climber in this year’s top 10, moving up to fourth position. Despite not competing in the Champions League, revenues were boosted by the club acquiring 100% ownership of its home ground, the Allianz Arena,” said Alan Switzer, Director in the Sports Business Group.
“Fenerbahce and VfB Stuttgart, two of the three new entrants in the Money League, gain their position as a result of the significant revenue boost from competing in the Champions League. The other new entrant, Manchester City, secured 20th position largely due to the increase in broadcast monies received from the Premier League, in the season prior to the arrival of the club’s Abu Dhabi based owners.”
Football remains a growth sport, especially at the highest level. The top 20 clubs’ aggregate revenue grew by 6% (EUR 220 mln) to EUR 3.9 bln in 2007/08. The top 20 clubs now generate more than three times the combined revenue of the clubs in the first Money League publication in 1996/97.
This year’s Money League is based on the latest available revenue figures in respect of the 2007/08 season, largely before the global economic downturn. Whilst next year’s Money League will show some early signs of how the changing economic environment is affecting the game’s top clubs (for the current 2008/09 season), it will not be until 2009/10 that there is a fuller picture of the impact.
Reflecting on the potential impact of the economic downturn on Money League clubs, Paul Rawnsley, Director in the Sports Business Group said that, “the unique nature of the football industry will enable major clubs to be relatively resistant to the economic downturn. Clubs’ match attendances are holding up well and clubs in each of England, Germany, France and Spain have TV deals secured well into the future at enhanced levels. However, the clubs are not complacent and will have to work hard to grow further matchday and commercial revenue streams for 2009/10.
“The English Premier League currently generates the highest level of broadcast rights value of any football league in the world. Despite the challenging economic environment, the Premier League has just secured a record value for live domestic broadcast rights for the seasons 2010/11 to 2012/13, up 4% to GBP 1.78 bln. Given the worldwide popularity of the Premier League there is likely to be further uplift in value from overseas rights when they are marketed later this year.”
The Deloitte Football Money League – 2007/08 revenue
Position
(prior year) Club Revenue (€mln)
1 (1) Real Madrid 365.8
2 (2) Manchester United 324.8
3 (3) FC Barcelona 308.8
4 (7) Bayern Munich 295.3
5 (4) Chelsea 268.9
6 (5) Arsenal 264.4
7 (8) Liverpool 210.9
8 (6) AC Milan 209.5
9 (11) AS Roma 175.4
10 (9) Internazionale 172.9
11 (12) Juventus 167.5
12 (13) Olympique Lyonnais 155.7
13 (16) Schalke 04 148.4
14 (10) Tottenham Hotspur 145.0
15 (15) Hamburger SV 127.9
16 (19) Olympique de Marseille 126.8
17 (14) Newcastle United 125.6
18 (n/a) VfB Stuttgart 111.5
19 (n/a) Fenerbahce 111.3
20 (n/a) Manchester City 104.0
Source: Deloitte Football Money League 2009
Revenue excludes player transfer fees, VAT and other sales related taxes.
