The world’s most popular sport is at the highest level also one of the fastest growing industries. The total revenue of the world’s Top 20 football clubs broke through the €3 billion barrier for the first time in 2004/05 after growing by 6% and doubling since 1996/97, according to the Deloitte Football Money League 2006.

Top football clubs based on revenue

                                          

Deloitte Football Money League — 2004/05 season

Position ’06 (’05)	Club	Revenue (€m)
1. (2.)	Real Madrid	275.7
2. (1.)	Manchester United	246.4
3. (3.)	AC Milan	234.0
4. (5.)	Juventus	229.4
5. (4.)	Chelsea	220.8
6. (7.)	FC Barcelona	207.9
7. (9.)	Bayern Munich	189.5
8. (10.)	Liverpool	181.2
9. (8.)	Internazionale	177.2
10. (6.)	Arsenal	171.3
11. (12.)	AS Roma	131.8
12. (11.)	Newcastle United	128.9
13. (14.)	Tottenham Hotspur	104.5
14. (17.)	Schalke 04	97.4
15. (n/a)	Olympique Lyonnais	92.9
16. (13.)	Celtic	92.7
17. (16.)	Manchester City	90.1
18. (n/a)	Everton	88.8
19. (n/a)	Valencia	84.6
20. (15.)	SS Lazio	83.1

A number of methods may be used to determine the size of a club. However, for the purposes of the Deloitte Football Money League ranking, we look at the best publicly available measure of ‘financial muscle’: revenue from day to day football business operations.

Real Madrid shoots to the top in this regard, overtaking Manchester United which had headed the list in each of the previous eight editions. Real have transformed their revenues, doubling them in only four years to €276m.

The mainstay of Real’s revenue growth is not matchday revenues, as in many of the UK clubs, or broadcasting revenue, as in Italy, but strong progress in realising their commercial potential, both in terms of developing a progressive and extensive partner programme, and in capitalizing on the club’s strong international support.

In the next few seasons, Chelsea, Arsenal, AC Milan, Juventus and Barcelona are expected to challenge for a top three position, while developments in the German and French markets may see more representatives from these countries in future editions of the Deloitte Football Money League.

Key growth factors of football revenue

The catalyst for the overall remarkable long term growth was the broadcasting rights revolution of the 1990s, fuelled by soaring interest in the game, new technology and deregulation of the broadcast markets. Moreover, in the major European countries the value of top class broadcasting rights continues to rise.

However, many clubs are rightly continuing to concentrate day to day on the areas over which they have direct control, according to the Deloitte Football Money League. The stadium development boom, started in the early 1990s in the UK, and most recently seen in Germany, has provided the perfect opportunity for clubs to enhance their revenues.

Further opportunities in this area still remain for all clubs to increase matchday — and nonmatchday — income. These can include ticket yield management and segmentation techniques, and the development of enhanced customer packages — all of which do not require great capital investment (but which do require careful thought). Targeted research and consulting with the market can assist clubs in ensuring that they are meeting the ever changing demands of the customer.

About the report

The Deloitte Football Money League was compiled by Dan Jones, Rich Parkes and Austin Houlihan of the Sports Business Group. This is the ninth year of the publication, profiling the 20 largest clubs in the world’s most popular sport. In addition, this year’s edition provides five-year view of the Deloitte Football Money League clubs and comments on Real Madrid’s commercial revenue transformation.

The revenue figures are extracted from each club’s annual financial statements, or other direct sources, for the 2004/05 season. Revenue excludes player transfer fees, value added tax and other sales related taxes.

To register for your free copy of the Deloitte Football Money League report please follow to the Deloitte UK web site.