FOOTBALL FINANCE: REAL MADRID Nº1 RECORD BREAKING INCOME GENERATOR IN ONE YEAR

When REAL MADRID President Florentino Perez paid a record 73M€ for Zinedine Zidane in 2001 many thought he was crazy & that he would ruin the Club & put in danger the whole World of Football. Instead Perez defended his “Business Model” saying that in the mid to long term it would be the cheapest Real Madrid signing in history. Many were amazed initially at the statement & later surprised as the “prophecy” became truth when the Spanish Club increased enormously its income flows from ticket sales, merchandising, publicity (Club takes 50% of players promo), TV rights …etc.

President Perez has stayed true to his business philosophy in his second term as Club President spending 270M€ on Cristiano Ronaldo (World Record with 94M€), Kaká, Benzema Xabi Alonso, Albiol, Granero…etc; & in today’s news he & the “business model” has again been reinforced & confirmed. According to the International Accounting firm “Deloitte” in its “Football Money League” Report, REAL MADRID is the first Club to have gone passed the 400M€ mark in income generation in one single year, in fact the figure is 401,4M€ (540,9 US$). The Spanish Club stays in the Nº 1 position for a 5th year in a row, ahead of FC BARCELONA with 366M€ (up from 57M€) & Manchester United with 327M€ a figure which has fallen due to a weaker pound sterling.

What is of note is the still potential for growth in the Real Madrid case, seeing that they have reached this record-breaking income generating figure WITHOUT winning “La Liga” &/or “Champions League”. If this were to occur one can only imagine the new income record figure in the future.

List of Top 20 Clubs – Income generation/year

1. Real Madrid 401,4 M€
2. Barcelona 365,9
3. Man. United 327
4. Bayern Munich 289,5
5. Arsenal 263
6. Chelsea 242,3
7. Liverpool 217
8. Juventus 203,2
9. Inter 196,5
10. Milan 196,5
11. Hamburgo 146,7
12. Roma 146,4
13. Ol. Lyon 139,6
14. Olympique Marsella 133,2
15. Tottenham 132,7
16. Schalke 04 124,5
17. Werder Bremen 114,7
18. Borussia Dortmund 103,5
19. Manchester City 102,2
20. Newcastle 101,0

Meys said...: Barcelona's income jumped from 57 million to 366 million in one year???; 12:56 am
STRIKER said...: Hi Meys
According to the report yes. Remember they won everything & I am sure they re-negotiated all their contracts upwards.

They have been heavily marketing themselves in MEast & Asia & TV rights are important.

Plus , I think here is the secret, ...FC Barcelona sold some prime land (the mini estadi) in the city of Barcelona for real estate development...Big win here!; 10:44 am
Meys said...: Thank you for that detailed response. I read your blog daily. Great stuff.; 7:28 pm
Unknown said...: Barca's previous income was 357 not 57. who told u it was 57. Btw, I happened to read the official Deloitte Football Money League Report. You can get ur hands on it on the Deloitte official website.

also this financial report reflects the 08-09 season (i.e. our earnings before signing cristiano ronaldo and others). It doesnt take expenses from player transfers into account.; 5:43 pm
Unknown said...: The 57 million is after expenditure like wages & transfer fees. This year Man utd's was 40 million, bearing in mind the 80m Ronaldo profit and interest payments.
Man city >> 250m LOSS!!!; 7:41 pm