Real Madrid, Worth $ 5.1 Billion, Back On Top

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The piles of cash thrown off by European soccer competitions is a big reason why Real Madrid, worth $ 5.1 billion, 7% more than last year, has reclaimed its spot as the world’s most valuable soccer team.

By Mike Ozanian


By capturing a record 35th domestic league title in 2021-22, Real Madrid will generate the most revenue in La Liga and by qualifying for a record eighth Champions League final (to be played this Saturday against Liverpool) Real Madrid will earn over $ 100 million. In addition, it was announced last week that Real Madrid, currently undergoing an $ 850 million stadium renovation, secured $ 379 million as part of an agreement with Sixth Street and Legends in which Sixth Street “acquired the right to participate in the operation of certain businesses of the new Santiago Bernabéu stadium for a period of twenty years. To pay for its new stadium Real Madrid borrowed an additional $ 236 million from JP Morgan and Bank of America in November, bringing total borrowings from the banks to $ 842 million.

Real Madrid. which last held the top spot in 2019 (Forbes did not compile soccer team values ​​in 2020) has now been the most valuable soccer team six of our 18 rankings (Manchester United leads with 11, most recently in 2018).

Barcelona is moving even more aggressively on the stadium front, spending $ 1.6 billion to build the largest soccer stadium in Europe. To pay for it, they signed a multi-year $ 458 million shirt and stadium sponsorship deal with Spotify and are reportedly close to nearing a $ 960 million deal with Goldman Sachs and All Sport Finance in exchange for a 30% stake of Barcelona’s broadcast revenues and a portion of future revenues from the reserve new stadium complex. Worth $ 5 billion, 6% more than a year ago, Barcelona is the second most valuable soccer team and are tied with the NFL’s New England Patriots as the seventh most valuable team in any sport.

Rounding out the top three is Manchester United, up 10% to $ 4.6 billion. The Red Devils have by far the most supporters of any English team and with $ 128 million of operating income during 2020-21, were the second-most profitable team on our list. But Manchester United was eliminated in the Champions League round of 16 this year and their sixth-place finish in the Premier League this season means they will miss out on 2022-23 Champions League prize money.


THE WORLD’S MOST VALUABLE TEAMS



Indeed, even with a dearth of fans at games due to Covid during the 2020-21 season the average value of the top 20 teams increased 10% from the prior year, to $ 2.53 billion (in Euro the average value this year was 2.38 billion, 15.6% more than last year). And they are financially muscular. Operating income (earnings before interest, taxes, depreciation and amortization and player trading) was $ 860 million on $ 9.68 billion of revenue. Average debt / value: 9%.

AVERAGE TEAM VALUES

(IN OF TEAMS)


Why? The top soccer teams are global brands with a massive number of supporters, monetized in large part with rich television deals. Consider earlier this month a group led by Todd Boehly and Clearlake Capital plucked down $ 3.1 billion — second to only the $ 3.2 billion paid for the NBA’s Brooklyn Nets in 2019 — to buy Chelsea from Roman Abramovich and also promised to commit another $ 2.16 billion in future investments , including the stadiums used by Chelsea’s men’s (Stamford Bridge) and women’s (Kingsmeadow) soccer teams.

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Under the right ownership, tarnished brands can be quickly turned back into gems. Consider AC Milan. The Italian side was in financial ruins with negative equity of $ 37 million when Elliott Management took them over after its owner defaulted on a loan payment in 2018. Elliott invested hundreds of millions of capital into AC Milan, eliminating almost all of the debt debt, lowered player spending relative to revenue and the team ended fiscal 2021 with positive equity of $ 70 million. At the same time, AC Milan improved on the pitch. Last May the team qualified for the Champions League for the first time in seven years and this season captured its first Serie A title in 11 years (you can watch my interview with Elliott Management’s Giorgio Furlani. Below). The investment firm may soon sell AC Milan for in excess of $ 1.1 billion.


WORLD SOCCER VALUE 2022

1. REAL MADRID

Value: $ 5.1 billion

1-Yr Change: 7%

Owner: Club members

Operating Income: $ 90 million

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2. BARCELONA

Value: $ 5.1 billion

1-Yr Change: 5%

Owner: Club members

Operating Income: $ 17 million

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3. MANCHESTER UNITED

Value: $ 4.6 billion

1-Yr Change: 10%

Owner: Glazer Family

Operating Income: $ 128 million

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4. LIVERPOOL

Value: $ 4.45 billion

1-Yr Change: 9%

Owner: John Henry, Tom Werner

Operating Income: $ 104 million

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5. BAYERN MUNICH

Value: $ 4.275 billion

1-Yr Change: 1%

Owner: Club members

Operating Income: $ 102 million

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6. MANCHESTER CITY

Value: $ 4.25 billion

1-Yr Change: 6%

Owner: Sheikh Mansour bin Zayed Al Nahyan

Operating Income: $ 156 million

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7. PARIS SAINT-GERMAIN

Value: $ 3.2 billion

1-Yr Change: 28%

Owner: Qatar Sports Investments

Operating loss: $ 102 million

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8. CHELSEA

Value: $ 3.1 billion

1-Yr Change: -3%

Owner: Todd Boehly, Clearlake Capital

Operating Income: $ 45 million

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9. JUVENTUS

Value: $ 2.45 billion

1-Yr Change: 26%

Owner: Agnelli Family

Operating Income: $ 26 million

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10. TOTTENHAM HOTSPUR

Value: $ 2.35 billion

1-Yr Change: 2%

Owner: Joseph Lewis, Daniel Levy

Operating Income: $ 127 million

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11. ARSENAL

Value: $ 2.05 billion

1-Yr Change: -27%

Owner: E. Stanley Kroenke

Operating Income: $ 53 million

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12. BORUSSIA DORTMUND

Value: $ 1.8 billion

1-Yr Change: -5%

Owner: Bernd Geske, Evonik Industries

Operating Income: $ 20 million

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13. ATHLETIC OF MADRID

Value: $ 1.5 billion

1-Yr Change: 50%

Owner: Miguel Gil, Enrique Cerezo, Ares Management

Operating Income: $ 45 million

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14. AC MILAN

Value: $ 1.2 billion

1-Yr Change: 115%

Owner: Elliot Management

Operating Loss: $ 16 million

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15. INTER MILAN

Value: $ 1.0 billion

1-Yr Change: 35%

Owner: Zhang Jindong, LionRock Capital

Operating Income: $ 3 million

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16. EVERTON

Value: $ 940 million

1-Yr Change: 43%

Owner: Farhad Moshiri

Operating Loss: $ 20 million

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17. LEICESTER CITY

Value: $ 925 million

1-Yr Change: 103%

Owner: Khun Aiyawatt Srivaddhanaprabha

Operating Income: $ 16 million

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18. WEST HAM UNITED

Value: $ 900 million

1-Yr Change: 77%

Owner: David Sullivan, David Gold

Operating Income: $ 42 million

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19. LEEDS UNITED

Value: $ 800 million

1-Yr Change: Not Rated

Owner: Andrea Radrizzani, 49ers Enterprises

Operating Income: $ 51 million

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20. ASTON VILLA

Value: $ 750 million

1-Yr Change: Not Rated

Owner: Wes Edens, Nassef Sawiris

Operating Income: $ 12 million

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METHODOLOGY

The revenues and operating income listed are for the 2020-2021 season, converted to US dollars based on average exchange rates during that season (1 euro = $ 1.188, 1 GBP = $ 1.340). Revenue are proceeds the soccer team generates from broadcasting, commercial and matchday events. Team values ​​are enterprise values ​​(equity plus net debt) and include the economics of the low stadium (but exclude the value of the real estate itself), based on comparable transactions. Operating income is earnings before interest, taxes, depreciation and amortization, player trading and disposal of player registrations. Debt is interest-bearing borrowings due in more than one year (including stadium debt). “NR” indicates a team was not ranked last year. The exchange rates used to convert team values ​​and debt to US dollars (1 euro = $ 1.053, 1 GBP = $ 1.247) are as of May 17, 2022. Sources include team annual reports and documents, team executives, credit rating agency reports, sports bankers and Deloitte Football Money League.



CREDITS

Header image: Kylian Mbappe of Paris SG, Sylvain Lefevre / Getty; Lionel Messi of PSG, Jonathan Moscrop / Getty; Kevin De Bruyne of Manchester City, Marc Atkins / Getty; Neymar, Tnani Badreddine / DeFodi Images / Getty; Cristiano Ronaldo of Manchester United, Matthew Ashton / AMA / Getty; Erling Haland of Dortmund Matthias Hangst / Getty; Robert Lewandowski of Bayern Muenchen / Stefan Matzke – sampics / Corbis / Getty; Soccer Balls, Paul Taylor / Getty.

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