Atlético Madrid Cuts Debt By $115M Russian Club Seeks Help Finding Sponsor Li Na Retires Due To Knee Injures England To Play Extra Int'l In 2016 Official Says Russian GP Will Go Ahead Pulver: Ratings Drop Won't Impact TV Deal Wembley To Host Euro 2020 Final, Semis Sports Bodies Say Business As Usual UCI To Use Cameras During Championships Stroll To Decide Between Sauber, Lotus
SBD Global/May 8, 2014/FinancePrint All
A pair of La Liga clubs -- Real Madrid and Barcelona -- are the top two most valuable fooball clubs "for the first time since Forbes began ranking" them, according to Mike Ozanian of FORBES. Real Madrid generated $675M in '12-13, the "most in the history of the sport." It is now worth $3.4B, 4% more than a year ago. Barcelona posted a revenue of $627M and is worth $3.2B, up 23% from last year. ManU is the third most valuable team. The club is worth $2.8B, down 11% during the past year "due to its substandard performance this season." ManU's $559M, seven-year kit deal with Chevrolet that begins this summer means the club will only lose $35M from missing out on the Champions League instead of $55M. Bayern Munich's value rose 41% to $1.9B. Bayern is Germany's "most popular team," with more than 4,100 FC Bayern Fan Clubs globally, including 225,000 registered fans. Bayern Munich extended its kit sponsorship deal with Deutsche Telekom through '17 "for an average of" $42M a year, tops in Germany. Two newcomers to the top 20 are Ligue 1 side Paris St. Germain, worth $415M and ranked 15th, and Süper Lig club Galatasaray, worth $347M and ranked 16th (FORBES, 5/7). For a complete list of the top 20 most valuable football clubs, click here.
The Top 10 Most Valuable Football Teams
Rank Club Country
1. Real Madrid
4. Bayern Munich
8. AC Milan
Though the games in the seventh edition of the Indian Premier League have "lived up to expectations," the eight teams in the tournament "may not see such action in their financials this year," according to Das Gupta & Malvania of the Indian BUSINESS STANDARD. Industry professionals said that the reason is the IPL's "shift to the United Arab Emirates for the first 20 matches." As a "result of the shift, the franchises have incurred added cost for traveling and accommodation overseas" and lost out on "gate revenues for the matches held in the UAE." This means that franchisees could see a "steep fall in their incomes" by 20-25% this year, "denting their already strained balance sheets." Kolkata Knight Riders CEO Venky Mysore said, "The franchisees have been hit by a double whammy -- costs have gone up and revenues have come down because of the shift in venue." IPL "top brass," however, has said that "they will 'take care' of the additional expense, though there is nothing specific which has been given in writing." An official "associated with a franchise from North India" said, "The franchises definitely have it tough this year. There has been a drop of 30 to 40% in sponsorship revenues on an average apart from the loss in gate revenues for matches in the UAE" (BUSINESS STANDARD, 5/7).
Spanish professional football clubs reduced their debt to Spanish tax authorities by more than €200M during the '12-13 season, as clubs obtained a profit of €106M and decreased spending by 7%, according to the EFE. Spanish Superior Sports Council (CSD) President Miguel Cardenal "released the figures on Wednesday at an informative meeting where he explained the financial situation of Spanish football through a report on audits corresponding to the '12-13 season." The collective debt of Spanish professional clubs is now €3.6B ($5B) after a reduction of €200M (5%). Cardenal "expressed his satisfaction because the tendency is changing" after there was a debt of more than €4B. In addition to the 7% decrease in clubs' spending during the period reviewed, the amount spent on salaries dropped by 2.3%. Cardenal: "The system of economic control is working well, and we are quite satisfied with the result" (EFE, 5/7).
Efforts to find a "multi-million pound investor to take over Silverstone have been abandoned after negotiations failed," according to Kevin Eason of the LONDON TIMES. The British Racing Drivers' Club, which owns the historic circuit, has already "secured the future" with a £32M ($54M) deal to lease the "industrial land surrounding Silverstone but was looking for an operator to develop the circuit to compete with the glittering tracks springing up in foreign capitals." The BRDC has now decided to "hold on to the circuit and carry out its own planning for the future, while MEPC, which owns the industrial and technology park, is also investing." BRDC Chair John Gran "gave an assurance that Silverstone and the British Grand Prix -- on July 6 this year -- are safe" (LONDON TIMES, 5/7). REUTERS' Alan Baldwin reported the talks with an "unidentified investor had been for the lease of the circuit land and sale of its wholly-owned subsidiary" (REUTERS, 5/7).