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La Liga duo top revenue rankings for 2008/2009

  • 03-03-2010 1:59pm
    #1
    Registered Users, Registered Users 2 Posts: 7,046 ✭✭✭


    http://www.deloitte.com/view/en_GB/uk/industries/sportsbusinessgroup/press-release/d039400401a17210VgnVCM100000ba42f00aRCRD.htm
    Real Madrid becomes the first sports team in the world to generate €400m in revenues as it tops Deloitte Football Money League

    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.



    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 €400m 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, 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 €401m (£342m) came despite a relatively disappointing season domestically and in Europe. Broadcast income provided Real with its largest increase in revenue, and at €161m (£137m) is now greater than the total revenue of all but the top ten 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, the largest absolute increase of any Money League club, to €366m. 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 £224m (€263m). 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.

    There is now almost a €50m gap between tenth and eleventh place in the Money League. For certain clubs outside the top ten, consistent qualification for the Champions League combined with increased revenue opportunities from planned new facilities may allow them to bridge this gap.

    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.”


    Amazing that Real Madrid have remained top for 5 consecutive years, despite doing nothing in Europe, and winning two league titles. What's even more amazing is that they are the first team in the history of sport to generate 400 million euro in a single season, and that was before Florentino Perez came in and started his Galactio MKII project. I can only imagine what it'll be next year if they manage to win some silverware as well as having the poster boys like Benzema, Ronaldo, Kaka, and Casillas. Pretty efficient business model they got over at the capital.

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Comments

  • Registered Users, Registered Users 2 Posts: 12,043 ✭✭✭✭L'prof


    Read that yesterday, figures don't include transfer fees though, do they? Phenomenal amount of money to bring into a club though!


  • Registered Users, Registered Users 2 Posts: 7,046 ✭✭✭eZe^


    jasonorr wrote: »
    Read that yesterday, figures don't include transfer fees though, do they? Phenomenal amount of money to bring into a club though!

    Nope, it's just how much income the club makes. So obviously there books won't be as well balanced overall as at arsenal, considering they spent about hundreds of millions on transfers over the summer. Still though, for a club in quite a mediocre success period, to make over 400 million is quite remarkable. I'm looking forward to seeing how much they generate with their new Galacticos and the possibility of some trophies.


  • Registered Users, Registered Users 2 Posts: 12,043 ✭✭✭✭L'prof


    eZe^ wrote: »
    Nope, it's just how much income the club makes. So obviously there books won't be as well balanced overall as at arsenal, considering they spent about hundreds of millions on transfers over the summer. Still though, for a club in quite a mediocre success period, to make over 400 million is quite remarkable. I'm looking forward to seeing how much they generate with their new Galacticos and the possibility of some trophies.

    Amazing how much cash they can generate through their history alone! As you said, imagine if they were winning trophies! :eek:


  • Registered Users, Registered Users 2 Posts: 7,046 ✭✭✭eZe^


    Glad to see this thread got off to a storm....
    jasonorr wrote: »
    Amazing how much cash they can generate through their history alone! As you said, imagine if they were winning trophies! :eek:


    It wasn't really their history that has contributed to their revenue success, it's down to Perez. I'm sure we all remember his first Galactico program, well that's the reason they are such an efficient business machine at the moment (even though they are quite heavily in debt). The likes of Beckham, Zidane, Raul, Ronaldo, McManaman, Owen, Anelka, Figo - they weren't solely purchased for their footballing appeal, the marketability of some of those players is through the roof, and allowed Real to gather a larger fan base in all those countries. (including Africa and Asia where the likes of Zidane/ Ronaldo/ Beckham were all idols)

    The scary thing was Galactico MKI was set up where a max of one or two big big players was bought a season, but the second coming of Perez has seen him buy 5 - (Benzema, Alonso, Arbeloa, Ronaldo, Kaka) in one season. This summer he's also likely to sign another few big players, the likes of David Villa and Ribery have been mentioned.

    They are also only 2 points off the top in Spain, meaning they are in control of their own destiny (if they win every game between now and the end of the season they are champions). I also reckon they'll go fairly far in the CL, with the possibility of winning their 10 title at the Bernabeu being more than enough motivation for the players. So if they win either of those trophies I can see them generating well over 500 million in revenue for the 2009/2010 season. Scary thought really. The gap between the big two in Spain and the rest is constantly getting larger, which is inevitably bad for sides like Sevilla/ Valencia/ Atleti...

    Don't know why I bothered typing that, this thread was a massive Hindenberg. :P


  • Closed Accounts Posts: 8,983 ✭✭✭leninbenjamin


    Unless I'm mistaken, those rankings are heavily skewed in favour of Spanish/Italian teams by virtue of the fact they negotiate their own individual deals for broadcasting rights?


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  • Registered Users, Registered Users 2 Posts: 7,046 ✭✭✭eZe^


    Unless I'm mistaken, those rankings are heavily skewed in favour of Spanish/Italian teams by virtue of the fact they negotiate their own individual deals for broadcasting rights?

    Yes, there is alot of truth to that. They negotiate their own broadcasting fee, so last year the likes of Real Madrid will make more than Chelsea. However, for the eventual champions, the case is flip flopped, Barcelona got about 12 million for winning the La Liga title, whereas Manchester United got around 50 million. So if you are comparing the champions of each league, the revenue in that aspect is roughly the same. (Not disputing the runner up comparison though, there is a huge difference there)


  • Closed Accounts Posts: 8,983 ✭✭✭leninbenjamin


    eZe^ wrote: »
    However, for the eventual champions, the case is flip flopped, Barcelona got about 12 million for winning the La Liga title, whereas Manchester United got around 50 million.

    Is that not an indicator though that the EPL has much greater market share globally than La Liga? That's kinda what I meant.


  • Registered Users, Registered Users 2 Posts: 7,046 ✭✭✭eZe^


    Is that not an indicator though that the EPL has much greater market share globally than La Liga? That's kinda what I meant.

    Never would have disagreed. The EPL as a whole has a much greater appeal in the US, Russia, China, India, etc in comparison to La Liga, there's no doubting that. However, despite the premier leagues dominance, Barcelona and Real Madrid have slowly started to expand their marketability in USA and Asia (not really sure about Russia). They are slowly starting to rival Manchester United and Liverpool in these areas, as well as having the lion share of support in South America, and other European countries. Africa is apparently quite 50-50 (Real Madrid seem to have a HUGE appeal in Africa).

    It's actually worrying for La Liga on a whole, as that trend is similar to pitch success. Real and Barca are essentially the global representation of La Liga, and they are the team that takes the lions share of revenue from the league. Valencia and Sevilla have absolutely no chance to go toe to toe financially with them. Whereas in England among the big 4 there is a much smaller variance in fund distribution and global popularity.

    Also, from your point of view, it's very interesting to see how you leap frogged Chelsea, an encouraging sign that the Emirates and the new financial system in place is visibly letting the club progress. Not that Wenger will spend any of the money, he's as tight as a duck's arse. ;)


  • Closed Accounts Posts: 8,983 ✭✭✭leninbenjamin


    eZe^ wrote: »
    Also, from your point of view, it's very interesting to see how you leap frogged Chelsea, an encouraging sign that the Emirates and the new financial system in place is visibly letting the club progress. Not that Wenger will spend any of the money, he's as tight as a duck's arse. ;)

    In relation to Arsenal, things are progressing very quickly. The club recently reduced the Highbury Square loan by £100m since last May, this was partially through property sales and partially financed by the sales of Touré and Adebayor. The loan itself was on very unfavourable terms (had to be taken out because of the property crash) so this is great news for the club, interest repayments on the rest of the debt are fairly favourable at around 5%.

    Anyway, the Highbury Square loan was a major headache for the club as it was completely unplanned for and was continually being renegotiated. Wenger's frugality in the market in recent years is certainly in part due to it. He didn't have to divert the Touré/Ade funds into paying it off but doing so seems to have been a shrewd move judging by the half year results. Now the loan is effectively gone, the payments on the rest of the debt are comfortably outweighed by additional revenue from Emirates. Out of all the top 10 on that list I would argue Arsenal are in the most favourable position financially, so hopefully that will filter through to the pitch soon enough.


  • Registered Users, Registered Users 2 Posts: 12,043 ✭✭✭✭L'prof


    eZe^ wrote: »
    Glad to see this thread got off to a storm....

    What did you expect, the article isn't about how great the premier league teams are doing :p
    eZe^ wrote: »
    Glad to see this thread got off to a storm....




    It wasn't really their history that has contributed to their revenue success, it's down to Perez. I'm sure we all remember his first Galactico program, well that's the reason they are such an efficient business machine at the moment (even though they are quite heavily in debt). The likes of Beckham, Zidane, Raul, Ronaldo, McManaman, Owen, Anelka, Figo - they weren't solely purchased for their footballing appeal, the marketability of some of those players is through the roof, and allowed Real to gather a larger fan base in all those countries. (including Africa and Asia where the likes of Zidane/ Ronaldo/ Beckham were all idols)

    The scary thing was Galactico MKI was set up where a max of one or two big big players was bought a season, but the second coming of Perez has seen him buy 5 - (Benzema, Alonso, Arbeloa, Ronaldo, Kaka) in one season. This summer he's also likely to sign another few big players, the likes of David Villa and Ribery have been mentioned.

    They are also only 2 points off the top in Spain, meaning they are in control of their own destiny (if they win every game between now and the end of the season they are champions). I also reckon they'll go fairly far in the CL, with the possibility of winning their 10 title at the Bernabeu being more than enough motivation for the players. So if they win either of those trophies I can see them generating well over 500 million in revenue for the 2009/2010 season. Scary thought really. The gap between the big two in Spain and the rest is constantly getting larger, which is inevitably bad for sides like Sevilla/ Valencia/ Atleti...

    :eek: What is Madrid's debt like at the moment? Forbes have them at only 23% last summer. I guess when you make such a phenomenal amount of money, you can afford to buy the players that they have.

    Think somebody finally figured out why Arsenal's debt ratio is so high (107%) there. They are valued at £797m which, apparently includes their debt. I'd expect to see a massive change there for us since we paid off £130m of our debt in 6 months.


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  • Users Awaiting Email Confirmation Posts: 15,001 ✭✭✭✭Pepe LeFrits


    The strength of the Euro also reflects negatively on the PL teams.


  • Registered Users, Registered Users 2 Posts: 20,617 ✭✭✭✭PHB


    What is amazing about that list? There is a second division team in it!


  • Registered Users, Registered Users 2 Posts: 12,043 ✭✭✭✭L'prof


    PHB wrote: »
    What is amazing about that list? There is a second division team in it!

    Is that not amazing in itself?


  • Closed Accounts Posts: 4,005 ✭✭✭CorkMan


    anyone notice Real and Barca are the only 2 La Liga sides in this list?

    I have been following Madrid since Ronaldo joined them by the way, so I know a good bit.


  • Registered Users, Registered Users 2 Posts: 12,043 ✭✭✭✭L'prof


    CorkMan wrote: »
    anyone notice Real and Barca are the only 2 La Liga sides in this list?

    I have been following Madrid since Ronaldo joined them by the way, so I know a good bit.

    :pac:


  • Closed Accounts Posts: 6,478 ✭✭✭Bubs101


    Most interesting thing about that list is that despite Milan making a fortune from selling Kaka and Inter breaking around even Juve leapfrogged them both


  • Closed Accounts Posts: 4,681 ✭✭✭ziggy


    This post has been deleted.


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