Real Madrid becomes the first sports team in the world to generate 400 million Euro in revenues in one year

• On-pitch dominance takes Barcelona second as Manchester United slip to third 
• Clubs remain recession resilient with the majority showing revenue growth 
• Arsenal climbs to fifth as seven English clubs feature in Top 20

Bucharest, Romania – March 2, 2010 – Real Madrid remains the world’s largest revenue generating football club, for the fifth consecutive year, according to the latest Football Money League from business advisory firm Deloitte. Real also becomes the first team in any sport to record revenues in excess of 400 million Euro in a single year.

Barcelona overtook Manchester United to finish second, with the English Champions falling to third in the report, which ranks the 20 biggest football clubs in the world based on revenue. Analysis in the Football Money League covers the 2008/09 season and is the most contemporary and reliable analysis of clubs’ relative financial performance.

Overall revenues for the Top 20 clubs increased in 2008/09 and were over 3.9 billion Euro, as top clubs showed relative resistance to the economic downturn. Whilst combined revenue growth for the top 20 clubs slowed compared to previous years, the majority of clubs achieved revenue increases in local currency in 2008/09.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “Real Madrid’s 10% increase in revenue to 401 million Euro came despite a relatively disappointing season domestically and in Europe. Broadcast income provided Real with its largest increase in revenue, at 161 million Euro. FC Barcelona’s unprecedented on-pitch success, winning a domestic double and the Champions League, helped drive a revenue increase by 57 million Euro, the largest absolute increase of any Money League club, to 366 million Euro. This resulted in a Spanish one-two at the top of the Money League as, like in Rome last May, Barcelona proved just too strong for Manchester United. United slip to third and, like other English clubs, were impacted by the continuing depreciation of the Pound Sterling against the Euro. The scale of this is shown by the fact that if exchange rates remained at their June 2007 level, United would be top of the Money League table.” Arsenal returned to the top five in the Money League after a one year absence, climbing one place to replace London rivals Chelsea, with a 7% increase in revenue to 263 million Euro. Liverpool, Tottenham Hotspur, Manchester City and Newcastle United complete the seven English clubs in this year’s Money League.

All of this year’s top 20 clubs are from the ‘big five’ European leagues with Germany contributing five clubs, Italy four, and France and Spain represented by two clubs each.

Alan Switzer, Director in the Sports Business Group, said: “Real Madrid and FC Barcelona have created a clear revenue gap between themselves and their European competitors, and look set to contest the top two positions in the Money League for the foreseeable future, particularly if the Pound doesn’t strengthen against the Euro. However, new improved Premier League broadcast contracts, and in particular strong growth in the value of the league’s international rights, will provide a revenue boost to English clubs from 2010/11.

Paul Rawnsley, Director in the Sports Business Group, commented: “We continue to assert that the game’s top clubs are well placed to meet the challenges presented by the difficult economic environment. Their large and loyal supporter bases, ability to drive broadcast audiences, and continuing attraction to corporate partners provide a strong base to underpin revenues. This premise is supported by clubs’ revenue performance in 2008/09. However it will not be until 2009/10, the season currently in progress, before we see the full impact on clubs’ revenues.”

Jones concluded: “Whilst there has been much recent comment on the finances of English football clubs, we believe the fundamentals of football remain strong. Financial problems experienced at the very highest level are far more likely to be a result of mismanagement, weak cost control or a lack of available credit than any problems with revenue generation.”

Note to editors

To review the full findings of the Deloitte Football Money League and to hear a podcast featuring Dan Jones, please visit www.deloitte.co.uk/sportsbusinessgroup.

The Deloitte Football Money League – 2008/09 revenue

Source: Deloitte Football Money League 2010

This press release is based on the Deloitte Football Money League published in March 2010. 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 2008/09 season.

The two clubs that have dropped out of the Money League for 2008/09 (compared to the top 20 clubs based on 2007/08 revenue) are VfB Stuttgart and Fenerbahce.

There are many ways of examining the relative size, 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. For the purpose of the international comparisons, all figures for the 2008/09 season have been translated at 30 June 2009 exchange rates (£1 = €1.1741). The exchange rate for Pound Sterling to the Euro fell by 7% between 30 June 2008 and 30 June 2009.

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

In this press release references to Deloitte are references to Deloitte LLP, which is among the UK’s leading professional services firms and a member firm of Deloitte Touche Tohmatsu (‘DTT’).

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.

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