Deloitte Football Money League 2010
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Spanish Masters Football Money League Sports Business Group March 2010 Real Madrid becomes the first sports team to record revenues in excess of €400m Contents 2 Welcome 5 How we did it 6 Ups and downs 7 The Deloitte Football Money League 28 Golden years 32 Spain lights the way 36 Risky businesss? Edited by Dan Jones Authors Austin Houlihan, Rich Parkes, Adam Bull, Martyn Hawkins, Simon Hearne and Caspar Schmick Sports Business Group at Deloitte PO Box 500, 2 Hardman Street, Manchester, UK M60 2AT Telephone: +44 (0)161 455 8787 Fax: +44 (0)161 455 6013 E-mail: [email protected] www.deloitte.co.uk/sportsbusinessgroup March 2010 Football Money League 2010 Sports Business Group 1 Welcome Welcome to the 13th edition of the Deloitte Football Chart 1: Total revenues 2008/09 (€m) Money League, in which we profile the highest earning clubs in the world’s most popular sport. Coming nine 400 4 . 1 months after the end of the 2008/09 season, it is the 0 4 9 most contemporary and reliable analysis of clubs’ 350 . 5 6 relative financial performance. 3 0 . 7 300 2 Whilst there are a number of methods that can be used 3 5 . 9 to determine clubs’ relative size – including measures of 8 2 0 e . l 250 l i fanbase, attendance, broadcast audience, or on-pitch 3 e 6 r s 3 2 r . u a success – we compare clubs using revenue from day to 2 p s 4 M t 2 0 o e . day football operations which we believe is the best d H d 7 200 n n 2 d 1 e . u e 5 y 5 e m 2 3 . t t u m i 4 publicly available financial comparison. i a m 0 6 6 q t e 0 n C i h r r 2 9 9 p n r U o B e 1 1 e e k r D m e t l t l t e s y a t l 150 a o e s i d h r T 7 s O 4 a h c We published last year’s edition of the Money League . s e c c 6 S 6 . 6 u 2 n 7 r w 4 W . 9 4 . a 5 o e 1 3 3 1 . amidst an economic downturn impacting on the majority 2 B 3 M N 1 4 3 7 . 1 2 1 s 4 5 i d 100 1 2 of industry sectors. We predicted that 2008/09, the season 0 . 1 . a e 3 t 1 2 1 n i 0 0 n 0 n h covered by this edition, would show some early signs of 1 V e o 1 1 c U l i S y a a r L n n r d n e i u e o e t football’s top clubs’ resistance to the recession. But we r l o l s i g n u a 50 d e M r s o z e a q a l a c l i u u a o m r i h n a e t p r knew it would not be until 2009/10, the season currently in b n p M c a o s n n l r r M e l n B R e m e m e e e y a s a y v t v a l C r h S a e C i u progress, before we saw the full impact on clubs’ revenues. n F L R H I A J A C M B A 0 O We continue to assert that the game’s top clubs are Source: Deloitte analysis. well placed to meet the challenges presented by the difficult economic environment. Their large and loyal Congratulations to Real Madrid who top the Money supporter bases, ability to drive broadcast audiences, League for the fifth consecutive year and become the and continuing attraction to corporate partners provide first team in any sport to record revenues in excess of a strong base to underpin revenues. €400m. FC Barcelona’s exceptional season on the pitch, winning the domestic double and the UEFA Champions This premise is supported by clubs’ revenue performance League, helped drive the largest year on year absolute in 2008/09. The combined revenues of the top 20 revenue growth of any Money League club with a Money League clubs was over €3.9 billion in 2008/09, €57m increase to €366m resulting in the club returning a €26m increase on the previous year. However, nine of to second place in the list and completing a Spanish the top 20 clubs showed a decrease in revenues in local one-two. currency in 2008/09 compared to the previous year, although for two of these clubs the revenue fall was due The sustained depreciation of the Pound Sterling against to inferior performance in European competitions, and the Euro continues to impair English clubs’ positions in hence lower UEFA central distributions. the list. For example, had Manchester United’s 2008/09 revenues been converted to Euros at the summer 2007 The vast majority of Money League clubs maintained exchange rate, the club would have topped this year’s average match attendances when comparing 2008/09 Money League. For the purposes of our analysis, we use with 2007/08. This continued into 2009/10, other than the exchange rate as at the 30 June each year, and the for clubs who face additional challenges in 2009/10 in Pound Sterling fell by 21% against the Euro between maintaining attendances at previous levels, due to 2007 and 2009 meaning that Manchester United’s on-pitch performance or stadium redevelopment issues. revenue in Euros for 2008/09 is €74m below that of Nonetheless, the changing economic environment has Real Madrid and €39m below FC Barcelona, who placed increased pressure on ticket pricing strategies leapfrog the English champions in to second place. and all clubs will continue to face challenges in managing matchday yields. 2 However, England retains seven clubs in this year’s top 20, the largest representation of any single country The combined revenues reflecting its continued strength in depth as a result of the Premier League’s central broadcast deals and the of the top 20 clubs ability of the league’s clubs to generate comparatively was over €3.9 billion high matchday revenues. in 2008/09 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 There is only one change to the clubs comprising the each. In fact there is little change in the top 20 clubs top ten with Juventus’ return to Europe’s top-tier clubs compared with last year with two new clubs, Werder competition for the first time since 2005/06 allowing it Bremen and Manchester City, replacing VfB Stuttgart and to replace fellow Italian club AS Roma. This restores the Turkish club Fenerbahce. The limited change in the clubs long term top ten of all the three seasons prior to the comprising the Money League top 20 reflects the fact Turin club’s well publicised off-pitch difficulties. that those clubs with the largest supporter bases in the However, competing in Europe’s top clubs competition strongest economic markets, high attraction to need not be the sole factor in allowing a club to achieve commercial partners, and consistent participation in significant revenue growth. Eleventh placed Hamburger European competition will dominate the top positions. SV, which participated in the UEFA Cup in 2008/09, achieved a €19m (15%) growth in revenues largely This is reinforced by the fact that clubs from the through a growth in matchday and commercial income, ‘big five’ European leagues also occupy most of the and was the highest climber in this year’s list jumping positions immediately below the top 20 as the table four places. below indicates. Whilst there is now almost a €50m gap between tenth Club Reported revenue and eleventh place, consistent qualification for the €m Champions League, coupled with pressure on top Italian Paris Saint-Germain 100.8 clubs’ revenues with the re-introduction of collective Club Atlético de Madrid 100.3 selling of Serie A broadcast rights, may help the German FC Girondins de Bordeaux 99.8 club challenge for a top ten position. The same could be VfB Stuttgart 99.8 said for 15th placed Tottenham Hotspur for whom Aston Villa 98.9 completion of a new stadium will provide additional ACF Fiorentina 94.1 revenue growth and the opportunity to climb further up Everton 93.5 the list. French champions Olympique Lyonnais also have SSC Napoli 90.1 plans for a new facility which may provide the platform West Ham United 89.3 to challenge the top ten, particularly if the club can Fenerbahce SK 87.0 consistently progress to the latter stages of the Champions League. So what of the future? Whilst there has been relatively Juventus, Internazionale and AC Milan occupy positions little change in the clubs that comprise the top 20, eight to ten in the Money League and there has been a participation and relative performance in the UEFA gradual decline in Italian clubs’ positions in the list in Champions League continues to be a key factor in recent years emphasising the need to address a number determining a club’s position in the Money League.