Man United Fall In Deloitte’s Rankings
Deloitte has released the 2014 edition of the Football Money League, the widely respected annual barometer of the financial health of Europe’s elite football clubs.
The 17th edition of the annual report, which ranks clubs based on their revenues, sees Manchester United drop from the top three clubs in Europe despite winning the Premier League. Bayern Munich leapfrog United into third place behind leaders Real Madrid and second-placed Barcelona. Paris Saint-Germain complete the top five, underlining the French club’s emergence as one of Europe’s elite.
Despite United’s fall, the Barclays Premier League remains the best-represented league in Deloitte’s top 20, with six clubs. Manchester City’s climb to sixth place in Europe sees Chelsea and Arsenal both fall to seventh and eighth, with Liverpool (12th) and Tottenham Hotspur (14th) completing the set.
AS Roma, Atletico Madrid and Fenerbahce are all new entrants into the top 20, the latter joining compatriots Galatasaray. The two Turkish clubs are the only representatives from outside Europe’s ‘big five’ leagues.
Dan Jones, Partner, Sports Business Group, said of the report: ‘The increased revenue from 2013/14 means that Premier League clubs are once again presented with a golden opportunity to improve cost control and hence financial performance. In 1995, midway through the Premier League’s first broadcast deal, we commented that “we believe that controlling the wage bill is, long term, football’s biggest challenge” and this challenge remains. If anything, the trend for any additional revenue generated to disappear as additional costs, the widely quoted ‘prune juice’ effect, has become more pronounced. Wage costs have consumed 83% of Premier League clubs’ revenue growth since 2006/07 and the wages to revenue ratio has reached 70%, while operating margins are now only 4% and are forecast to narrow even further in 2012/13.’
Total combined revenue for top 20 Money League clubs up 8% to €5.4bn, with leaders Real Madrid contributing €518.9m. Europe’s 30 top clubs now all generate over €100m – an achievement accomplished only by Manchester United in the Football Money League’s first edition in 1996/7.
The Bundesliga and Serie A contribute four clubs each to the rankings, with three from Spain completing the set along with the two Turkish clubs, PSG and the Premier League’s six.
Jones added: ‘The Premier League clubs’ current slim operating profit margins, coupled with the imminent boost to revenue, mean that a reduction of even a few percentage points in the rate of leakage of revenue to wages could provide huge benefits – by facilitating sustained investment in professional football’s infrastructure, notably in stadia, youth development, community programmes and marketing, which would in turn support the long term development, growth and stability of the game and its clubs.’
