Real Madrid has become the first sports team in the world to generate revenues of 400m Euros in a single year.
The Spanish giants topped the Deloitte Football Money League for the fifth year in a row after increasing revenues for the 2008/09 season by 10 per cent to 401.4m Euros.
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. Arsenal, meanwhile, climbed to fifth as seven English clubs made the top 20.
Overall revenues for the top 20 increased to more than 3.9bn Euros as Europe’s leading club’s weathered the economic downturn impressively.
Dan Jones, a partner in the Sports Business Group at Deloitte, said: “Real Madrid’s 10 per cent increase in revenue to 401m Euros came despite a relatively disappointing season domestically and in Europe. Broadcast income provided Real with its largest increase in revenue, and at 161m Euros is now greater than the total revenue of all but the top 10 Money League clubs.
“FC Barcelona’s unprecedented on-pitch success, winning a domestic double and the Champions League, helped drive a revenue increase by 57m Euros, the largest absolute increase of any Money League club, to 366m Euros. 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 climbed one place to replace London rivals Chelsea in fifth thanks to a seven per cent increase in revenue to 263m Euros. Liverpool, Tottenham Hotspur, Manchester City and Newcastle United complete the seven English clubs in this year’s Money League.
“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,” Alan Switzer, a director in the Sports Business Group, said.
“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, another director in the Sports Business Group, added: “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. However, it will not be until 2009/10, the season currently in progress, before we see the full impact on clubs’ revenues.”
Jones concluded: “While 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.”
THE DELOITTE FOOTBALL MONEY LEAGUE – 2008/09 REVENUE
1. Real Madrid (401.4 million Euros)
2. FC Barcelona (365.9 million Euros)
3. Manchester United (327.0 million Euros)
4. Bayern Munich (289.5 million Euros)
5. Arsenal (263.0 million Euros)
6. Chelsea (242.3 million Euros)
7. Liverpool (217.0 million Euros)
8. Juventus (203.2 million Euros)
9. Internazionale (196.5 million Euros)
10. AC Milan (196.5 million Euros)
11. Hamburger SV (146.7 million Euros)
12. AS Roma (146.4 million Euros)
13. Olympique Lyonnais (139.6 million Euros)
14. Olympique de Marseille (133.2 million Euros)
15. Tottenham Hotspur (132.7 million Euros)
16. Schalke 04 (124.5 million Euros)
17. Werder Bremen (114.7 million Euros)
18. Borussia Dortmund (103.5 million Euros)
19. Manchester City (102.2 million Euros)
20. Newcastle United (101.0 million Euros)
