United drop in wealth stakes
United are now fourth in the Deloitte Football Money League behind leaders Real Madrid, Barcelona and Bayern Munich based on 2012/13 season income.
The money table has been compiled by Deloitte since 1997, and for the first eight years United were the biggest-earning club in the world only to be overtaken by first Real Madrid, then Barcelona and now Bayern, thanks in part to the German side’s remarkable treble-winning season.
The table has also recorded an astonishing rise in income by the Qatari-owned French club Paris St Germain, with earnings rocketing by a record 81% to see the team rise from 10th to fifth ahead of Manchester City, Chelsea and Arsenal.
But it will be United’s fall that will concern the club’s shareholders the most, especially since shares on the New York stock exchange are down just above the 15-dollar mark from an annual high of more than $19.
Analysts at Deloitte, however, believe United will reclaim third spot from Bayern next year and are in good financial shape — though failure to qualify for the Champions League will affect finances in the longer term. Dan Jones, partner in the sports business group at Deloitte, said: “It is the first time Manchester United have dropped out of the top three but Bayern had an exceptional year.
“Next year United will have the Chevrolet deal plus other new commercial deals in their figures, and the new Premier League TV deal so we are confident they will be back in the top three.
“The longer term depends in part what happens on the pitch and if they do not qualify for next season’s Champions League that is probably worth €50 million directly in terms of money from TV and attendances at Old Trafford.”
Jones also believes United’s financial performance remains “very high” and that the club will remain attractive to investors.
Real Madrid top the Money League for the ninth consecutive year, with total revenue of €518.9m, followed by Barcelona with €482.6m, — the Spanish clubs benefit financially from being able to negotiate their own TV deals.
Bayern are third with earnings of €431.2m, then Manchester United with €423.8m and Paris St Germain are not far behind on €398.8m.
Manchester City are sixth with €316.2m, then Chelsea €303.4m and Arsenal €284.3m.
Liverpool have dropped out of the top 10 for the first time since 1999 — the Reds are in 12th spot with revenue of €240.6m behind Juventus, AC Milan and Borussia Dortmund, while Tottenham are in 14th place with earnings of €172m.
Jones, however, believes the effect of the new Premier League TV deal, which will be reflected in next year’s money table, will see Liverpool restored to the top 10 with Everton, Newcastle and even West Ham pushing into the top 20.
The Money League also illustrates how clubs which are taken over by super-rich owners can swiftly see huge increases in revenue.
In 2009, Manchester City and PSG were 20th and 21st but have seen significant growth, notably in terms of commercial income.
Both clubs have benefited from major sponsorship deals related to their owners — indeed PSG’s deal with the Qatar Tourism Authority, which will net the French club €195m annually until 2016, has eclipsed City’s €489m-plus Etihad deal which is over ten years.
All such related sponsorship deals will be studied by Uefa as part of the European governing body’s financial fair play rules to ensure they are of ‘fair market value’.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
