Deloitte Money League

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http://www.guardian.co.uk/football/2010/mar/02/manchester-united-barcelona-deloitte-rich-list

Manchester United fall behind Barcelona on Deloitte rich list

• Real Madrid break €400m barrier to stay top

• Seven English clubs on the annual top 20 list

Owen Gibson

The Guardian, Tuesday 2 March 2010


Ten months ago Manchester United were soundly beaten by Barcelona in the Champions League final and now they have been overtaken by the Catalan club in revenue-generating terms as well, according to the latest annual Football Money League.

Real Madrid remain top of the list, compiled by the accountancy firm Deloitte, becoming the first club in any sport to break through the €400m (£362m) barrier in a single year. The rise of the two biggest clubs in Spanish football to the top of the Money League was partly fuelled by the favourable exchange rate against the pound and the fact that both negotiate their own individual broadcast deals as opposed to the collective arrangements in the Premier League.

"Real Madrid's 10% increase in revenue to €401m [£342m] came despite a relatively disappointing season domestically and in Europe," said Dan Jones, partner in the Sports Business Group at Deloitte. "Broadcast income provided Real with its largest increase in revenue and at €161m is now greater than the total revenue of all but the top 10 Money League clubs.

"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." Manchester United earned a total of €327m, marginally up from €324.8m last year.

The significance of the weakening of sterling against the euro is reflected in the fact that if measured at June 2007 prices, Manchester United would still be top. Jones said there was greater "strength in depth" in the financial resources of English football.

Arsenal returned to the top five in the Money League after a one-year absence, climbing one place to replace their London rivals Chelsea, with a 7% increase in revenue to €263m. Liverpool, Tottenham Hotspur, Manchester City and Newcastle United complete the seven English clubs in the top 20. Deloitte said Chelsea may find it difficult to return to the top five in years to come, given their restrictions on ground capacity and the increased threat posed by Tottenham once their new ground is complete.

Protests over the details of Manchester United's business model under the Glazers, as illuminated by the prospectus issued to prospective investors in the club's £504m bond scheme, has raised questions over whether overall revenues are the best gauge of financial strength. But Deloitte argues that it is still the most transparent and relevant measure.

The report illustrates the growing importance of the Champions League in revenue terms. The 13 Money League clubs that competed in the Champions League last season got a total of almost €500m – an average of 16% of their income – from the tournament.

"It's a real success story in terms of the strength of the competition commercially and on the pitch," said Jones. "But it's also a real challenge in terms of how the clubs that don't qualify compete with the clubs that do in their own domestic competitions. It's a bit double-edged."

Jones added he expected top clubs to experience modest revenue growth next year despite the impact of the recession, especially given the impact of new Premier League TV deals that could top £3bn over three years.

"People have found it hard to reconcile how you can have top-level football outpacing the economy in the good times, still growing in the bad times and have these clubs in pretty severe financial difficulty," he said. "But if people run the business badly and spend money they haven't got, they are going to end up in trouble."

Real surge ahead
€m

1 1 Real Madrid 401.4

2 3 Barcelona 365.9

3 2 Manchester United 327.0

4 4 Bayern Munich 289.5

5 6 Arsenal 263.0

6 5 Chelsea 242.3

7 8 Liverpool 217.0

8 Juventus 203.2

9 Internazionale 196.5

10 7 Milan 196.5

11 Hamburg 146.7

12 9 Roma 146.4

13 Lyon 139.6

14 Marseille 133.2

15 Tottenham Hotspur 132.7

16 Schalke 124.5

17 Werder Bremen 114.7

18 Borussia Dortmund 103.5

19 Manchester City 102.2

20 Newcastle United 101.0

Source: Deloitte Football Money League 2010