Financial News

Football clubs hit fantasy figures in new financial report

By Business & Finance
21 January 2016
Santiago Bernabeu Jean Paul Navarro
Santiago Bernabéu, Madrid

The 20 highest earning football clubs in the world generated €6.6bn of revenue last season, an increase of 8% on the previous year, according to the 19th edition of the Football Money League from Deloitte.

Unsurprisingly, Real Madrid top the list for the 11th year in a row, having generated €577m in the 2014/15 season.

Commercial revenue was the main driver of this growth, increasing by €22.7m from the previous season. Matchday income also saw an increase of €9.1m. Broadcast revenue, however, fell by €4.3m during the season.

Dan Jones, partner, Sports Business Group, Deloitte, commented: “For the first time, the top three clubs in the Football Money League have all passed the €500m revenue mark. Real Madrid once again delivered a strong financial performance, buoyed by growth in their commercial revenue. The planned redevelopment of the Santiago Bernabéu will help to continue the growth in matchday income in the coming years.

He continued: “FC Barcelona’s on-pitch achievements in the 2014/15 season have translated to financial success. The European champions have climbed to second place at the expense of Manchester United, with revenue growth across all areas of the business – matchday, broadcast and commercial.”

ENGLISH CLUBS PERFORM OFF-FIELD

Despite poor performances by Premier League clubs in recent European competitions, they continue to lead the way in revenue terms.

With the new round of Premier League broadcast deals set to deliver greatly improved domestic broadcast revenues in 2016/17, Premier League clubs will undoubtedly cement their place in the top 30 in the coming years.

A 10% strengthening of sterling versus the euro also helped English clubs during the 2014/15 season.

English clubs now dominate the top 30, with 17 of those clubs having played in the Premier League during the 2014/15 season.

Manchester United, although slipping one place to third, remain the highest revenue-generating club from the Premier League, earning €519.5m. Chelsea fell one place to eighth, with Arsenal climbing to seventh. Manchester City and Liverpool are the other two Premier League clubs in the top 10, placing sixth and ninth respectively.

Tim Bridge, senior manager, Deloitte, said: “Despite a reduction in revenue year-on-year, the fact that Manchester United remain in the top three of the Money League demonstrates the underlying strength of the club’s business model. The return to Champions League football, as well as the commencement of a number of significant commercial partnerships, will only strengthen the business in 2015/16.”

DECLINE OF ITALIAN CLUBS CONTINUES

This year’s Football Money League has also seen movement amongst Europe’s football giants, with Bayern Munich falling from third to fifth place, their lowest position since 2006/07.

German giants Bayern Munich have been leapfrogged by Paris Saint-Germain, the only French team in the top 20, following another year of growth and a revenue of €480.8m.

Despite a successful Champions League campaign for Juventus, and Roma’s jump from 24th to 16th, it has been a disappointing season for Italian clubs in revenue terms. Both Inter and AC Milan have slipped two places in the last year, with the former close to dropping out of the top 20 of the Money League for the first time.

20 HIGHEST EARNING FOOTBALL CLUBS

1. Real Madrid €577
2. FC Barcelona €560.8
3. Manchester United €519.5
4. Paris Saint-Germain €480.8
5. Bayern Munich €474
6. Manchester City €463.5
7. Arsenal €435.5
8. Chelsea €420
9. Liverpool €391.8
10. Juventus €323.9
11. Borussia Dortmund €280.6
12. Tottenham Hotspur €257.5
13. Schalke 04 €219.7
14. AC Milan €199.1
15. Atlético de Madrid €187.1
16. AS Roma €180.4
17. Newcastle United €169.3
18. Everton €165.1
19. Internazionale €164.8
20. West Ham United €160.9

Photo: Jean-Paul Navarro