Deloitte Report: Real Still Ahead Of Man UTD

12 Feb 2009 | tshego

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Real Madrid has maintained its status as the world’s largest revenue generating football club ahead of Manchester United, according to the latest Football Money League from business advisory firm Deloitte.

The report, which saw Barcelona remain in third spot, ranks the 20 biggest football clubs in the world based on revenue and saw each of the top three clubs generate revenues in excess of €300m.

Bayern Munich returns to the top five in the Money League for the first time in five years, climbing three places to fourth and is joined in the top five by Chelsea.

Analysis in the Football Money League is based on the latest financial information for the 2007/08 season.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: ‘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 €41m over Manchester United.

‘With the club having announced that it is budgeting for revenues of €400m in 2008/09, it will be difficult for rivals to replace Real at the top of the Money League next year.

‘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 €100m in revenue in that season.’

Real Madrid increased revenue by €15m (4%) to take their total to €366m (£290m). while Manchester United’s performances on the pitch in 2007/08 resulted in a £45m (21%) increase in revenue to £257m, which translates to €325m. Third placed Barcelona grew its revenue by €19m (6%) to €309m.

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.
Jones added: ‘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.’

The global top 20 is entirely populated by European clubs. 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.

Football remains a growth sport, especially at the highest level. The top 20 clubs’ aggregate revenue grew by 6% (€220m) to €3.9bn (£3.1bn) 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 commented: ‘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 £1.782bn.

‘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 Club    Revenue (£m)    Revenue (€m)
1 (1)   Real Madrid     289.6   365.8
2 (2)   Manchester United       257.1   324.8
3 (3)   FC Barcelona    244.4   308.8
4 (7)   Bayern Munich   233.8   295.3
5 (4)   Chelsea 212.9   268.9
6 (5)   Arsenal 209.3   264.4
7 (8)   Liverpool       167.0   210.9
8 (6)   AC Milan        165.8   209.5
9 (11) AS Roma 138.9   175.4
10 (9) Internazionale 136.9   172.9
11 (12) Juventus        132.6   167.5
12 (13) Olympique Lyonnais      123.3   155.7
13 (16) Schalke 04      117.5   148.4
14 (10) Tottenham Hotspur       114.8   145.0
15 (15) Hamburger SV    101.3   127.9
16 (19) Olympique de Marseille 100.4   126.8
17 (14) Newcastle United        99.4    125.6
18 (n/a) VfB Stuttgart   88.3    111.5
19 (n/a) Fenerbahce      88.1    111.3
20 (n/a) Manchester City 82.3    104.0