SportsMoney Special Report: Most Valuable Soccer Teams [News Report]

by Avinash Saxena

Our annual valuations of the world’s richest soccer clubs are out and the results are impressive.

The enterprise value of the average top 20 club is now $640 million, 1.3% more than a year ago (while that may not seem like a great gain, keep in mind that our figures are in U.S. dollars and the value of the dollar  appreciated significantly against both the Euro and British pound from the end of 2008-09 season to the end of the 2009-10 season). Meanwhile, operating income increased to an average of $40 million, 25% higher than last year. Only three clubs (Manchester City, Olympique Lyonnais, Atletico de Madrid) lost money.

Full List: The World’s Most Valuable Soccer Teams

England’s Manchester United, owned by the Glazer family and the greatest global brand in team sports with over 330 million supporters worldwide, remains the most valuable soccer club, worth $1.9 billion. The Red Devils commercial revenue of $122 million for the 2009-10 season increased 16% in local currency, more than any other  club. With operating income of $148 million they also hold the distinction of the most profitable professional sports team in the world.

The highest grossing club remains Spain’s Real Madrid, whose $537 million in revenue is second across all sports to only Major League Baseball’s New York Yankees. Los Blancos’ matchday revenue broadcasting revenue of $158 million in the most in soccer and their broadcasting revenue of $194 million lags only rival Barcelona ($218 million). Valued at $1.5 billion, Real Madrid placed second.

Although our valuations are based on applying multiples to a club’s revenues for the 2009-10 season, we adjust our multiples to reflect material events. A case in point is French club Olympique Lyonnais. We adjusted their value upward 7.5%, to $358 million, in part to reflect a privately financed new stadium expected to be completed by the end of 2013.

Chelsea, owned by billionaire Roman Abramovich, had the biggest jump in operating profits, landing $37 million in the black after losing $73 million the previous year. The Blues are the most leveraged team on our list, with $889 million of debt and have depended on Abramovich’s deep pockets for financing . Chelsea is worth $658 million, good enough to be ranked seventh.

Despite losing $82 million during the 2009-10 season, Manchester City rose 13% in value, to 291 million. The club’s owner, Sheikh mansour bin Zayed Al Nahyan has poured an estimated $480 million of his personal wealth into the club since buying it in 2008, much of it to improve the club’s roster. Manchester City posted a fifth place finish in the Barclays Premier League during 2009-10, is currently fourth this season, and are poised to qualify for the lucrative Champions League next season.

One newcomer to this year’s list: Atletico de Madrid, worth $275 million. Atletico made it on to our list by dint of higher revenue from its performance in the UEFA Champions League, where they made it to the group stage, and capturing both the UEFA Europa League and the UEFA European Super Cup titles.

Advertisements

2 Responses to “SportsMoney Special Report: Most Valuable Soccer Teams [News Report]”

  1. I just check the demographics of Miami dade Fl it looks like there less and less foreclosures every month . In 3 Years In febuary we finnally saw it be less than 1000 .

Trackbacks

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: