Monday, 12 August 2013

Most valuable football teams in the world

To start things of with, I thought we'd go for something simple. So I went with the most valuable football teams in the world. In recent years, the main gong of most valuable team has been contested fiercely between Manchester United and Real Madrid, which isn't too surprising considering their dominance in their respective leagues. In 2013, Real Madrid pipped Man Utd to the crown of most valuable team.

Rank
Team
Value ($M)
Revenue ($M)
1
3,300
650
2
3,165
502
3
2,600
613
4
1,326
368
5
1,309
468
6
945
326
7
901
409
8
694
248
9
689
362
10
651
296
11
520
226
12
498
221
13
436
240
14
401
236
15
368
167
16
358
119
17
330
188
18
300
154
19
285
167
20
263
146

Well why are Real Madrid the most valuable team in 2013?

The answer doesn't lie because of its recent successes but its ability to achieve success over a substantial amount of time. In the past century, Real Madrid have racked an impressive 32 La Liga titles as well as 9 UEFA Champions League trophies. These successes come with very rewarding prizes, with La Liga earning the club $4m. The Champions League is much more rewarding than La Liga as when a team reaches each stage in the tournament, it receives the following amount: 

  • Playoffs: €2,100,000
  • Base fee for group stage: €8,600,000
  • Group match victory: €1,000,000
  • Group match draw: €500,000
  • Round of 16: €3,500,000
  • Quarter-finals: €3,900,000
  • Semi-finals: €4,900,000
  • Losing finalist: €6,500,000
  • Winning the Final: €10,500,000

Typically the winner of the competition will receive over €30,000,000 which is of course a lot of money in comparison to a team that goes out in the Playoffs or simply does not qualify in the first place. 

However, a large part of the distributed revenue from the UEFA Champions League is linked to the 'market pool', the distribution of which is determined by the value of the television market in each country. So as Real Madrid are a popular team for supporters, this means that more of their games are streamed live to the public which enables them to get a larger proportion of the television money from UEFA. 

Another reason for its placing in the table is down to the outrageous kit deal it has struck with Adidas which generates $42 million a year. The sponsorship deal isn't too bad either, with Emirates airline paying Madrid $39 Million a year for 5 years. 

And lastly, the main reason for its outstanding revenue figures is because of the tickets they sell each game. With a maximum capacity of 85,454, the match tickets will generate a massive revenue for the club which can only be matched notably by very few clubs in European football.  

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