Manchester United has climbed two places to second in the latest Football Money League from business advisory firm Deloitte, which ranks the 20 biggest football clubs in the world based on revenue. Real Madrid remains the world’s largest revenue generating club, completing a hat-trick of first place finishes. Analysis in the Football Money League is based on the latest financial information for the 2006/07 season.

Manchester United is joined in the top five by Chelsea and Arsenal.  Chelsea has climbed two places to fourth whilst Arsenal is the biggest climber in the 2007 Money League, rising four places to fifth this year.  Barcelona has dropped one place from second to third.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “This is the first time that any country has had three clubs in the top five of the Money League. Arsenal’s move to the Emirates Stadium has transformed their revenues whilst Chelsea’s revenue increase sees them return to the top five.”

Real Madrid and Manchester United became the first football clubs to generate more than €300m in a season. Real enjoyed an impressive 20% increase to take their total revenue to €351m (£236m), whilst Manchester United’s revenue grew even more quickly to reach €315m (£212m). Jones added: “With the new Premier League television deals now online for the 2007/08 season, Manchester United have the opportunity to significantly close the gap on Real and a successful Champions League run may even see them challenge again for the number one position.”

Football remains a growth sport, especially at the highest level. The top 20 clubs’ collective revenues grew by 11% to €3.7 billion (£2.5 billion) in 2006/07, the highest rate of growth since 2002/03. The top 20 clubs now generate more than three times the combined revenues of the clubs in the first Money League in 1996/97.

The global top 20 is entirely populated by European clubs. Six English clubs feature in this year’s Money League, along with four clubs from each of Germany and Italy, three Spanish clubs, two French clubs and one from Scotland. Post World Cup there are more German clubs in the Money League than ever before. 

Alan Switzer, Director in the Sports Business Group, says: “The performance of German clubs particularly catches the eye, with enhanced revenues being generated from new and improved stadia. The stadium is a club’s biggest asset and the majority of the Money League clubs are looking to complete stadium developments in the short and medium term.”

Whilst the number of English clubs in this season’s Money League dropped from eight to six, next year the number could significantly increase. Paul Rawnsley, Director in the Sports Business Group said: “Clubs such as Aston Villa, Everton, Manchester City and West Ham United are already just outside the top 20 and with the revenue uplift from the new broadcast deals now benefiting the clubs, we expect to see the bottom half of next year’s Money League dominated by English teams.”

Note to editors

To review the full findings of the Deloitte Football Money League and hear Dan Jones on our podcast visit www.deloitte.co.uk/sportsbusinessgroup

Deloitte Football Money League – 2006/07 season (UK £ Sterling and Euro €)

Source: Deloitte Football Money League 2008

This press release is based on the Deloitte Football Money League, published in February 2008. As explained more fully in the publication, the revenue figures are extracted from each club’s annual financial statements, or other direct sources, for the 2006/07 season.

The four clubs that have dropped out of the Money League top 20 are Manchester City, Rangers, West Ham United and Benfica.

There are many ways of examining the relative wealth or value of football clubs. For the Money League, revenue has been used as the most easily available and comparable measure of financial performance. 

Revenue excludes player transfer fees, value added tax and other sales related taxes. In a few cases adjustments have been made to total revenue figures to enable, in our view, a more meaningful comparison of the football business on a club by club basis. For instance, where information was available to us, significant non-football activities or capital transactions have been excluded from revenue. Some revenue differences between clubs, or over time, will arise due to different commercial arrangements and how the transactions are recorded in the financial statements; or due to different ways in which accounting practice is applied such that the same type of transaction might be recorded in different ways.

We have not performed any verification work or audited any of the information contained in the clubs’ financial statements or other sources for the purpose of the publication.

All figures for the 2006/07 season have been translated at 30 June 2007 exchange rates (£1 = €1.4856). Comparative figures have been extracted from previous editions of the Money League.

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

Over 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 our services you can access our website at www.deloitte.co.uk/sportsbusinessgroup 

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms. Deloitte & Touche is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other's acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. 

The information contained in this press release is correct at the time of going to press.

More information you can find here www.deloitte.co.uk.