Manchester United overtaken as world's most valuable club
Published: 2013 April 18 07:08:49 (6122 Views)
Spanish soccer giants Real Madrid increased the value of their club by 76% over the past year to usurp Manchester United as the world's most valuable football team.
A study by financial experts Forbes found that Real Madrid's value now stands at $3.3 billion, knocking the English Premier League champions elect off the top of the list for the first time since the study began in 2004.
Confounding the increasingly difficult economic conditions in Spain, Real, managed by Portuguese coach Jose Mourinho, have increased revenues to $650 million.
Their operating income of $134 million is second only to the $227 million amassed by the NFL's Dallas Cowboys, which is the highest of all sports teams.
Manchester United, on the brink of securing a record 20th English top flight title, increased their value by 42% to $3.17 billion, according to Forbes.
Despite dropping to second behind Real, United have boosted revenues with a share issue and by signing bumper sponsorship deals.
Their seven-year shirt sponsorship deal with U.S. car giant Chevrolet is worth $559 million while an eight-year agreement with insurance firm Aon is thought to be worth $230 million.
All England's top flight clubs have been boosted by an increase in television revenue with the combined domestic and overseas rights having the potential to top $6 billion, Forbes say.
Real's arch rivals Barcelona are third on the list with a value of $2.6 billion, English club Arsenal lie fourth on $1.32 billion while German champions Bayern Munich sit fifth on $1.3 billion.
The top 20 clubs, all but one of which are European, are worth an average of $968 million, which is up 26% on last year.
Forbes say they value teams by calculating their "enterprise values (equity plus debt) that are based on multiples of revenue that teams garner from television, premium seating, media, licensing, merchandise and concessions."
But speaking to CNN, sports business expert Simon Chadwick questioned the relevance of measuring value in this way.
"Real Madrid, Manchester United and Barcelona are all in the top-10 list of the most indebted clubs in the world, even if their revenue streams are healthy and strongly established," he said.
UEFA's new rules are designed to make Europe's clubs live within their means and attempt to break even each year, though there is an allowance for debt in the initial stages of their strategy.
- CNN
A study by financial experts Forbes found that Real Madrid's value now stands at $3.3 billion, knocking the English Premier League champions elect off the top of the list for the first time since the study began in 2004.
Confounding the increasingly difficult economic conditions in Spain, Real, managed by Portuguese coach Jose Mourinho, have increased revenues to $650 million.
Their operating income of $134 million is second only to the $227 million amassed by the NFL's Dallas Cowboys, which is the highest of all sports teams.
Manchester United, on the brink of securing a record 20th English top flight title, increased their value by 42% to $3.17 billion, according to Forbes.
Despite dropping to second behind Real, United have boosted revenues with a share issue and by signing bumper sponsorship deals.
Their seven-year shirt sponsorship deal with U.S. car giant Chevrolet is worth $559 million while an eight-year agreement with insurance firm Aon is thought to be worth $230 million.
All England's top flight clubs have been boosted by an increase in television revenue with the combined domestic and overseas rights having the potential to top $6 billion, Forbes say.
Real's arch rivals Barcelona are third on the list with a value of $2.6 billion, English club Arsenal lie fourth on $1.32 billion while German champions Bayern Munich sit fifth on $1.3 billion.
The top 20 clubs, all but one of which are European, are worth an average of $968 million, which is up 26% on last year.
Forbes say they value teams by calculating their "enterprise values (equity plus debt) that are based on multiples of revenue that teams garner from television, premium seating, media, licensing, merchandise and concessions."
But speaking to CNN, sports business expert Simon Chadwick questioned the relevance of measuring value in this way.
"Real Madrid, Manchester United and Barcelona are all in the top-10 list of the most indebted clubs in the world, even if their revenue streams are healthy and strongly established," he said.
UEFA's new rules are designed to make Europe's clubs live within their means and attempt to break even each year, though there is an allowance for debt in the initial stages of their strategy.
- CNN
0
You May Like These Videos
WATCH: Victims Narrate Ordeal After Being Clobbered By Riot Cops
FLASHBACK: Morgan Tsvangirai Won't Resign Despite Illness 
Police Violently Beat Harare Protesters 
Zimbabwean Man Who Was Shot By Tswana Employer Appeals For HelpComments
There are no comments.
Get Zim Metro Updates Alerts
Big Reads
Schoolgirl drops out after continuous 'sexual abuse' by teacher
by Staff Reporter | 2019 August 13 07:42:33
Mugabe Knows Nothing About The Zimbabwe Constitution: MP
by Staff Reporter | 2016 October 01 08:12:02
Zim's Protesting Graduates Risk Losing Degrees For Expressing Anger Against Mugabe
by Staff Reporter | 2016 October 01 07:57:08
Troubled Harare Giants Dynamos Falls Into Another Deep Crisis
by Own Correspondent | 2016 October 01 07:49:17
Grace Mugabe Grovels At Mnangagwa, Says I Did Not Ask Ubaba To Fire You
by Staff Reporter | 2016 October 01 07:31:48
Mugabe Attacks Mawarire, Claims The Exiled Pastor Failed To Divide Zimbabwe
by Staff Reporter | 2016 October 01 07:19:13
Shock As Local Bank Denies 'Rich' Mugabe's Son Heifty Credit
by Own Correspondent | 2016 September 30 19:14:54Trouble For Police Officers Who Have Been Mercilessly Bludgeoning Protesters
by Staff Reporter | 2016 October 01 07:20:19
Mugabe "Home Coming" And "Thank You" Rally On Cards
by Own Correspondent | 2016 September 23 06:48:24
Prof Moyo Was Dumped By Western Embassies, Claims Mutsvangwa
by Staff Reporter | 2016 September 22 10:08:07Broke RBZ Tracks Down Zimbabweans Living Outside The Country Over Taxi
by Staff Reporter | 2016 September 22 09:16:20
You Are Too Old To Lead, Aging Zim President Mugabe Told
by Own Correspondent | 2016 September 22 07:19:25
Anti-Corruption Commission Loses Property In Failed Probe
by Own Correspondent | 2016 September 20 03:18:19
.jpg)
SHOCKING:14 Year Old HIV-Positive Boy Rapes 7 Pupils
by Own Correspondent | 2016 September 20 00:04:55
