Economic downturn doing little to deter top clubs’ finances

Despite the fact that they have been warned otherwise, it appears as though the top clubs are weathering the financial storm better than expected. To date, the numbers provided by Forbes show that the leading 25 clubs are valued at $597 million, an increase of 8 percent from one year prior.

The totals are based on figures released by the clubs, including an operating income of $42 million throughout last season. This amount - which fails to take factors such as interest and taxes into account – indicates that the top 25 teams secured a 20 percent rise in income, as compared to the previous year.

Manchester United, Real Madrid, Bayern Munich, Arsenal and Liverpool lead the way as $1 billion clubs, falling only behind those of the National Football League in terms of quantity.

Broadcasting and sponsorship deals have been identified as strong sources of revenue for football clubs, allowing them to combat economic downturn with lucrative partnerships. The connection comes as no surprise, with BSkyB and Setanta securing Premier League rights for just under $2 billion per year.

Strong club revenue is also being attributed to shirt and uniform sponsorship, with more than 10 teams acquiring new sponsors since 2007, as noted by Forbes. As a result of the longevity of such deals, clubs are better able to predict their revenue in upcoming season.

Not surprisingly, Manchester United dominates the financial field, holding an estimated value of $1.87 billion. United was further identified as the most profitable club, earning a whopping $160 million in operating income and $68 million as the result of the top team’s Champions League win last season.