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Top football clubs defy European economic woes

The world’s 20 highest earning football clubs have swelled their revenues to a combined €4.4bn, against the backdrop of European economic gloom.

Representing 3% year-on-year growth, the clubs have doubled the rate of growth of economies represented in the Deloitte Football Money League.

Dominating the league are Manchester United, with Real Madrid chasing and Barcelona’s 13% growth taking them beyond €450m for the first time.

Dan Jones, Partner in the Sports Business Group at Deloitte, commented: “Continued growth of the top 20 clubs during 2010/11 emphasises the strength of football’s top clubs, especially in these tough economic times.

“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.”

Once again, the Money League top 20 comprises clubs from the ‘big five’ European leagues, six of which come from the English Premier League.

A further five Premier League clubs were just outside the top 20 for revenues in 2010/11 season, including Newcastle and Sunderland.

Liverpool slipped another place to ninth position, despite reporting strong growth from commercial revenues and a six-year kit deal with Warrior Sports.

Alan Switzer, a director in the Sports Business Group at Deloitte, said: “Spurs’ recently received planning consent for a new stadium development, coupled with a continuation of their recent on-pitch form, could secure a Money League top 10 position for the club on a frequent basis.

“A glance across North London to Arsenal leaves little doubt of the scale and impact of the increased matchday revenue opportunities that arise from a modern stadium development.”

Tottenham’s debut in the Champions League, where it reached the quarter-final stages, gave the club a chance to gain 10th spot in the league.

However it was leapfrogged by Schalke, which jumped six places and pushed Italian giants Juventus out of the top 10.

A subsequent 14th place finish in the 2010/11 Bundesliga season and failure to qualify for Champions League football in 2011/12 will likely see a fall back next year.

Manchester City are expected to break into the top 10 in the Money League next year, following the secured 10-year partnership with Etihad.

Commenting on the impact of UEFA’s financial fair play break-even requirement, Paul Rawnsley, a director in the Sports Business Group at Deloitte said: “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. UEFA’s break-even requirement, to be assessed for the first time in 2013, is helpful in driving this improvement.

“It is encouraging more owners to consider the longer term development of their clubs, in terms of generating revenues, investing in facilities and youth development, and controlling their expenditures.”

This was posted in Bdaily's Members' News section by Tom Keighley .