Real Madrid and Barcelona Top Deloitte Rich List; Premier League Clubs Lag

During the last football season, Spanish giants Real Madrid and Barcelona emerged as the leading clubs in earnings, according to Deloitte’s Football Money League report. For the third consecutive year, Real Madrid ranked first, generating an impressive £975 million ($1.309 billion) in revenue, while Barcelona followed with £150 million less.

Premier League Clubs Lag Behind

Despite Liverpool achieving over £700 million in revenue, they ranked fifth internationally. This is notably the first time in the 29-year history of the report that no English club made it to the top four. The Deloitte list is often referred to as the compilation of football’s richest clubs, although it does not guarantee financial health.

Revenue vs. Profit

• High revenues don’t always equate to profits.
• Some clubs face significant pre-tax losses despite impressive income figures.
• Barcelona, for example, posted a £7 million pre-tax deficit with £819 million in revenue.

Barcelona’s figure included significant one-time sales of personal seat licenses, not likely to be repeated soon. Deloitte’s report mainly focuses on revenue without accounting for the operational costs of running a football club, which can heavily impact financial standings.

Commercial Income Surges

This season marked a notable shift with commercial income becoming the largest revenue source, surpassing broadcast earnings for the third year in a row. The top 20 clubs earned a total of £4.46 billion in commercial revenue, up from £4.2 billion the previous year, demonstrating robust growth among the wealthiest clubs.

Top-Performing Clubs in Commercial Revenue

Broadcast Revenues Remain Strong

Despite being overshadowed by commercial revenue, broadcast earnings still represented a significant income stream, generating £3.95 billion across the football landscape. Real Madrid led in broadcast revenue with £281 million, closely followed by Manchester City and Arsenal.

Vulnerabilities in Financial Health

Many clubs are increasingly reliant on broadcast income. For example, Aston Villa derived over 63% of their total revenues from television deals, indicating financial vulnerability if performance declines.

English Clubs’ Continuing Challenges

The absence of English clubs in the top four raises concerns about their competitive standing. While Liverpool excels, Manchester United has seen sluggish growth, dropping to eighth place after decades of dominance in the rankings.

Cost Management and Financial Health

Interestingly, many clubs have begun to manage costs more effectively. Among the 19 clubs that reported their wage data, 13 saw a reduction in wage costs as a percentage of revenue.

• Average wages-to-revenue ratio decreased to 55.5%.
• Overall revenues rose from £9.4 billion to £10.2 billion.

Despite these improvements, the financial landscape remains complex. The increasing revenue figures tell only part of the story, as operational costs and potential future losses loom over some of the highest-earning clubs in football.