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Real Madrid becomes first sports club to generate annual revenues in excess of €500m

"Combined, the 20 Money League clubs contribute over one-quarter of the total revenues of the European football market,"

- Dan Jones,
Partner in the Sports Business Group at Deloitte

  • Total combined revenues of the top 20 Money League clubs up 10% to €4.8 billion;
  • Real Madrid top the rankings for the eighth successive year with revenue of €513m;
  • FC Barcelona complete a Spanish one-two for the fourth year running;
  • A first Premier League title and participation in the UEFA Champions League propel Manchester City up five places into seventh position;
  • English Premier League teams now occupy five of the top 10 places.

London/Prague 25 January 2013 – Real Madrid has become the first club in any sport to surpass the €500m revenue threshold in a single year, according to the 16th edition of the Football Money League from Deloitte, the business advisory firm. The Spanish club achieved a €33.1m (7%) increase in revenue to €512.6m, and in doing so has claimed the top position in the Money League for a record equalling eighth year, matching Manchester United's reign from 1996/97 to 2003/04.

The combined revenues of the world's 20 highest earning football clubs have grown 10% on the previous year to reach €4.8bn in 2011/12.

Dan Jones, Partner in the Sports Business Group at Deloitte, said: "It is an impressive achievement for Real Madrid to have surpassed €500m in revenue in a single year. Real have led the way in the phenomenal rate of revenue growth achieved by the game's top clubs, with the double digit (10%) increase by the top 20 clubs representing continued strong performance in these tough economic times. The combined revenues of the top 20 clubs have quadrupled since we began our analysis in 1996/97".

"Whilst eight of the top 20 clubs experienced a drop in revenue in 2011/12, in most cases this was due to less successful on-pitch performances in European club competitions, rather than wider recessionary impacts. Combined, the 20 Money League clubs contribute over one-quarter of the total revenues of the European football market. The top 20 can be expected to generate over €5bn between them in 2012/13."

For the fifth successive year, the clubs comprising the top six places in the Money League – Real Madrid, FC Barcelona, Manchester United, Bayern Munich, Chelsea and Arsenal – remain the same. FC Barcelona again claim second place in the rankings to complete a Spanish one-two for the fourth successive year.

Jones noted: "An unchanged top six emphasises the fact that these clubs have some of the largest fanbases and hence strongest revenues, in both domestic and international markets."

There is one new entry to the Money League this year, with Newcastle United replacing Spanish club Valencia. Once again, the English Premier League contributes the most clubs to the Money League with seven clubs in the top 20 rankings, five of which appear in the top 10. A further four Premier League clubs sit just outside the top 20 (Everton, Aston Villa, Fulham and Sunderland).

Manchester City (7th) are this year's joint highest climbers, along with Borussia Dortmund (11th) and Napoli (15th), moving up five places and claiming a top 10 position for the first time. The Premier League champions and Juventus replace Internazionale and Schalke 04 in the top 10.

Austin Houlihan, Senior Manager in the Sports Business Group at Deloitte, said: "Manchester City's Premier League title winning season combined with participation in the UEFA Champions League, helped drive 51% revenue growth to €285.6m, the largest absolute and relative growth of any Money League club. The club's progress to the top of the English and European game means that they are set to remain a top 10 Money League club for the foreseeable future, and will look to push on ahead of the two English clubs immediately above them in the Money League, Arsenal and Chelsea, for a top five ranking."

Chelsea's feat in becoming the first London club to win the UEFA Champions League, allowed it to claim fifth place. However, an early exit from European competition this year and capacity constraints of their Stamford Bridge home could see them slip down the Money League next year.

Despite a dip in revenue, as a result of narrowly missing out on the Premier League title and early exits from the UEFA Champions League and FA Cup, Manchester United (3rd) continued to make great strides in their commercial operations.

Houlihan explained: "Manchester United continue to successfully leverage their global brand. The new world-record seven-year shirt sponsorship deal with General Motors will double the revenues the club receives from its shirt partner in the first season of the new deal in 2014/15. This combined with new Premier League broadcast deals from 2013/14, which will deliver incremental distributions of between £20m and £30m per club, will help Manchester United push the two Spanish clubs above them, for a top two ranking. Indeed the new Premier League deals could mean that half of the Money League top 20 are represented by English clubs in a few years' time."

Commenting on the impact of UEFA's financial fair play break-even requirement, Paul Rawnsley, a Director in the Sports Business Group at Deloitte said: "Whilst the Money League covers clubs' revenue performance, there is an increasing focus within European football on clubs achieving more sustainable levels of expenditure relative to revenues, particularly given UEFA's financial fair play break-even requirement."

"Disciplined and responsible governance structures and financial management within European football, whilst providing the platform for investment in facilities and youth development, should only be encouraged."

- Ends -

Notes to editors:
To review the full findings of the Deloitte Football Money League, please visit: www.deloitte.co.uk/sportsbusinessgroup.

The Deloitte Football Money League – 2011/12 revenue

Position (prior year position) Club 2011/12 Revenue (€m)
(2010/11 Revenue)
2011/12 Revenue (£m)
(2010/11 Revenue)

1 (1)

Real Madrid

512,6 (479,5)

414,7 (433)

2 (2)

FC Barcelona

483 (450,7)

390,8 (407)

3 (3)

Manchester United

395,9 (367)

320,3 (331,4)

4 (4)

Bayern Mnichov

368,4 (321,4)

298,1 (290,3)

5 (5)

Chelsea

322,6 (253,1)

261 (228,6)

6 (6)

Arsenal

290,3 (251,1)

234,9 (226,8)

7 (12)

Manchester City

285,6 (169,6)

231,1 (153,2)

8 (7)

AC Milan

256,9 (234,8)

207,9 (212)

9 (9)

Liverpool

233,2 (203,3)

188,7 (183,6)

10 (13)

Juventus

195,4 (153,9)

158,1 (139)

11 (16)

Borussia Dortmund

189,1 (138,5)

153 (125,1)

12 (8)

Internazionale

185,9 (211,4)

150,4 (190,9)

13 (11)

Tottenham Hotspur

178,2 (181)

144,2 (163,5)

14 (10)

Schalke 04

174,5 (202,4)

141,2 (182,8)

15 (20)

Napoli

148,4 (114,9)

120,1 (103,8)

16 (14)

Olympique de Marseille

135,7 (150,4)

109,8 (135,8)

17 (17)

Olympique Lyonnais

131,9 (132,8)

106,7 (119,9)

18 (18)

Hamburger SV

121,1 (128,8)

98 (116,3)

98 (116,3)

AS Roma

115,9 (143,5)

93,8 (129,6)

20 (nový)

Newcastle United

115,3 (98)

93,3 (88,5)

 
Source: Deloitte Football Money League 2013

This press release is based on the Deloitte Football Money League published in January 2013. As explained more fully in the publication, the revenue figures are extracted from the annual financial statements of the company or group in respect of each club, or other direct sources, for the 2011/12 season.

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

Revenue excludes player transfer fees, VAT and other sales related taxes. In a few cases we have made adjustments 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.

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

For the purpose of the international comparisons, all figures for the 2011/12 season have been translated at 30 June 2012 exchange rates (£1 = €1.236). Comparative figures have been extracted from previous editions of the Deloitte Football 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 20 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

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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 195,000 professionals are committed to becoming the standard of excellence.

© 2013 Deloitte Czech Republic

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