Manchester United 2nd in the ‘rich league’ – but what do the reports mean by ‘rich’?

According to recent reports, Manchester United have moved from fourth to second in the list of the world’s richest clubs, as Real Madrid stayed top for the third straight year.

In all, there are seven British clubs in the top 20 positions.

1) Real Madrid: £236.2m
2) Man Utd: £212.1m
3) Barcelona: £195.3m
4) Chelsea: £190.5m
5) Arsenal: £177.6m
6) AC Milan: £153m
7) Bayern Munich: £150.3m
8) Liverpool: £133.9m
9) Inter Milan: £131.3m
10) AS Roma: £106.1m

(Source: Deloitte – figures for 2006/07)

So where does this ‘richness’ come from? Deloitte’s figures take into account income from ticket sales, merchandising and broadcasting contracts. You can guess the factors driving these receipts. Fans can take a perverse delight in seeing their team high up this table. There is a belief that high revenues can translate into improved performance on the pitch. And the evidence seems to broadly back that up. The table is dominated by a handful of ‘super teams’.

But back briefly to the subject of ‘money’. We know about ‘income’ - perhaps the word ‘revenue’ might also fit - but what about transfer receipts/fees? Most critically, what about other costs? The table tells us nothing about profitability.

Maybe that’s not so surprising. I think fans like to see their teams make high revenues, but not big profits! The shareholders don’t see it like that of course….

Further reading

FT: ‘TV deals favour Man Utd over Real Madrid’

Telegraph: Man Utd can be at head of rich man’s table