Contact: Sorelle Cooper
Deloitte & Touche LLP
+44 020 7303 4820
Contact: Katie Broome
Deloitte & Touche LLP
+44 020 7303 6359
London, January 17, 2005 — Research into the world's biggest football clubs, by income, shows the top 20 are set to break the €3 billion income mark in 2005. The research is based on the latest available information for the 2003/04 season. Key findings from the Deloitte Football Money League (formerly the "Rich List"):
- Manchester United maintain top position for the eighth year in a row with income of €259 million;
- In second place Real Madrid have halved the gap between themselves and Manchester United;
- Chelsea and Barcelona are the biggest climbers, up from tenth to fourth position and thirteenth to seventh position respectively
- AC Milan, Chelsea, Juventus, Arsenal and Barcelona are also expected to challenge strongly for a top three position in future seasons;
- Bayern Munich and Schalke 04 slip down the Money League despite the German corporate market’s significant contributions to the Bundesliga clubs.
Whilst the on-the-pitch competition to be crowned Champions of Europe is about to restart, the top clubs in Europe are also fighting for financial supremacy.
Dan Jones, a partner in the Sports Business Group at Deloitte, commented: "The second round of this season's Champions League draw has paired eight of our top nine Money League clubs with each other. The results of these matches may have a big influence on the clubs’ positions in the next Money League. Competing in the Champions League can deliver an extra 10% to 20% of income for a club."
The global top 20 is entirely populated by European clubs, with English clubs occupying eight of the positions, Italian clubs five positions, plus two clubs from each of Germany, Scotland and Spain and one club from France.
The UK clubs, who make up half the top 20, have a much more balanced spread of revenue than their European counterparts. Spanish and Italian clubs, in particular, are more dependent on broadcasting largely due to their individual broadcast rights deals. A stronger French presence in future Money Leagues is also expected following the new €600m per season domestic broadcast deal.
UK clubs differentiate themselves through the revenue-earning capability of their stadium facilities. A testament to the Old Firm's utilisation of their stadium facilities, as well as their brand strength, is that the city of Glasgow has as many representatives in the Money League as Spain and Germany and more than France.
Paul Rawnsley from the Sports Business Group at Deloitte points out: "In general, UK clubs have consistently managed, through focussed investment and targeted marketing, to achieve enhanced returns from their stadium asset. This has helped them to achieve a more balanced spread of revenues compared to many clubs on the continent. Many of Europe's leading clubs have a great, and as yet relatively unexploited, opportunity to develop significant income streams from their stadia."
Pursuing commercial opportunities is still a relatively new activity for clubs, with this area having only emerged over the past 15 years, in a sport that is well over a century old.
The relationship between a club and its supporters is paramount. "Deloitte has highlighted football's most important partnership for many years. A club's relationship with its fans has to be a true partnership" says Robert Elstone, director in the Sports Business Group. "There are only so many endorsed products the fans will buy and there is a risk of affinity overload as official status and logos appear on more and more products. Those clubs which can get it right will climb the Money League in future years."
Nowadays, according to Dan Jones, the top clubs are increasingly looking beyond the domestic and European markets to realise further increases in income. "The international market has become increasingly important for more European clubs. However, 'gaining a fan' in another country is one thing; unlocking some value in a distant and, in all likelihood, less committed fan base is not easy. The key is to have a clear long term strategy. These are not quick wins."
The Deloitte Football Money League – 2003/04 season
| Rank (Prior year) |
Club |
Income (In millions) |
| 1 (1) |
Manchester United |
€259.0 |
| 2 (4) |
Real Madrid
|
236.0 |
| 3 (3) |
AC Milan |
222.3 |
| 4 (10) |
Chelsea
|
217.0 |
| 5 (2) |
Juventus |
215.0 |
| 6 (7) |
Arsenal |
173.6 |
| 7 (13) |
Barcelona
|
169.2 |
| 8 (6) |
Internazionale |
166.5 |
| 9 (5) |
Bayern Munich |
166.3 |
| 10 (8) |
Liverpool |
139.5 |
| 11 (9) |
Newcastle
United |
136.6 |
| 12 (11) |
AS Roma |
108.8 |
| 13 (18) |
Celtic |
104.2 |
| 14 (16) |
Tottenham Hotspur |
100.1 |
| 15 (15) |
SS Lazio |
99.4 |
| 16 (n/a) |
Manchester City
|
93.5 |
| 17 (14) |
Schalke 04 |
91.4 |
| 18 (n/a) |
Olympique Marseille |
88.0 |
| 19 (n/a) |
Rangers |
86.2 |
| 20 (n/a) |
Aston Villa |
84.4 |
Source: Deloitte Football Money League
The full findings of the Deloitte Football Money League can be downloaded at www.deloitte.co.uk/sportsbusinessgroup.
About this press release
This press release is based upon the Deloitte Football Money League, published in February 2005. As explained more fully in the publication, the income figures are extracted from each club’s annual financial statements, or other direct sources, for the 2003/04 season. In some cases, the annual financial statements do not cover a whole season, but are for the calendar year, in which case we have used the figures for the most recent calendar year available. Income excludes transfer fees and value added tax. In a few cases adjustments have been made to total income figures to enable, in our view, a more meaningful comparison of the football business on a club by club basis. For instance, significant non-football activities or capital transactions have been excluded from income.
We have not performed any verification work or audited any of the information contained in the financial statements for the purpose of this publication. All figures for the 2003/04 season have been translated at 30 June 2004 exchange rates. Comparative figures have been translated at exchange rates as at 30 June for the relevant year. There are many ways of examining the relative wealth or value of football clubs. For the Deloitte Football Money League, income has been used as the most easily available and comparable measure of financial wealth. Later this year the Deloitte Annual Review of Football Finance will be published, providing a more detailed analysis of the English and European football finance landscape.
About the Sports Business Group at Deloitte
During the last 15 years, Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser. For further information on the services provided by the Sports Business Group at Deloitte you can access our website at www.deloitte.co.uk/sportsbusinessgroup.
About Deloitte in the UK
In this press release references to Deloitte are references to Deloitte & Touche LLP. Deloitte & Touche LLP is the UK's fastest growing major professional services firm based in 21 UK locations, with over 10,000 staff nationwide and fee income of £1,246 million in 2003/2004. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in nearly 150 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide, Deloitte delivers services in four professional areas — audit, tax, consulting and financial advisory services — and serves more than one-half of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.
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