The report, released today, highlights that the combined revenues of the world’s 20 highest earning football clubs have defied European economic woes by growing 3% on the previous year. The business advisory firm states that they have achieved double the rate of growth of the economies of the countries represented in the Money League, which grew on average by just 1.7% during the course of 2010 and by 1.3% in 2011. The 20 clubs generated Eur4.4 billion in revenue during the 2010-11 season and now represent over a quarter of the total revenues of the European football market. Nine of the top 20 clubs recorded double-digit growth in the year.
“Continued growth of the top 20 clubs during 2010-11 emphasises the strength of football’s top clubs, especially in these tough economic times,” said Dan Jones, partner in the Sports Business Group at Deloitte. “Whilst revenue growth has slowed from 8% in 2009-10 to 3% in 2010-11, their large and loyal supporter bases, ability to drive strong broadcast audiences and continuing attraction to corporate partners, has made them relatively resilient to the economic downturn.” For the fourth successive year, the clubs comprising the top six places in the Money League revenue stakes – Real Madrid (Eur479.5 million), FC Barcelona (Eur450.7 million), Manchester United (Eur367 million), Bayern Munchen (Eur321.4 million), Arsenal (Eur251.1 million) and Chelsea (Eur249.8 million) – have remained the same, with no movement in their respective positions for the last three years.
Real Madrid is now just one year short of equalling Manchester United’s dominance in the top position during the first eight years of the Money League. It is being chased hard by bitter La Liga rival Barcelona, whose 13% growth in 2010-11 meant revenue surpassed Eur450 million for the first time. Deloitte outlines that United’s failure to qualify for the knockout stages of the UEFA Champions League in 2011-12 will likely result in the gulf between the club and its Spanish opponents stretching to over Eur100 million. Jones stated: “Barca’s shirt deal with the Qatar Foundation will further boost the club’s revenue in 2011-12. Nonetheless, Real Madrid will be confident it can remain at the top of the Money League next year. The two clubs’ on-pitch performance, particularly in this season’s Champions League, will have a big influence on the final outcome.”
The remaining four places in the Money League top-10 are led by Serie A rivals AC Milan and Internazionale, with revenues of Eur235.1 million and Eur211.4 million respectively. Liverpool occupies ninth spot (Eur203.3 million), while Schalke has risen six places to 10th with revenues of Eur202.4 million. The 1.Bundesliga club’s dramatic rise up the Money League came as a result of a Champions League campaign that saw the team reach the semi-finals of the competition. However, Deloitte states that a disappointing 14th place finish in the 2010-11 Bundesliga season and failure to qualify for Champions League football in 2011-12 will likely see a drop back down next year.
Deloitte’s latest report comes after UEFA last month warned European football faces its “last wake-up call” as it revealed the losses of the continent’s top clubs jumped by 36% to Eur1.64 billion in the 2010 financial year. UEFA’s fourth club licensing benchmark report covered the financial figures of 665 clubs – 90% of all top-division outfits – and revealed that while revenues rose 6.6% to reach a record Eur12.8 billion, costs also rocketed by Eur1 billion to Eur14.4 billion. This has led to 56% of clubs making a loss with total debts of Eur8.4 billion. The figures come as UEFA prepares to implement its financial fair play (FFP) rules in 2013-14. Commenting on FFP, Paul Rawnsley, a director in the Sports Business Group at Deloitte, added: “The focus on football’s future financial sustainability is more prevalent in Europe than at any time in the past 20 years. We remain keen to see that translated into a better balance between revenue and expenditure.”