COMMENT: The European champions saw their lead cut in the financial standings, but sustained success and sustainable business models will see them get even stronger
Real Madrid are celebrating a "Doble Decima" after the publication of the 2015 Deloitte Money League. Last season the club captured their 10th European title by defeating city rivals Atletico Madrid in Lisbon. Now, this year starts with a bang as the European champions post record revenue to finish as the world's highest-earning club for a 10th consecutive year.
As impressive as Carlo Ancelotti's team have been on the field over the past 12 months, that hard work is backed up by consistent revenue growth off it. Real Madrid made a record €549.5 million during the 2013-14 season according to the 2015 Money League, thereby increasing their total by around €31m on the year before.
"With revenue of almost €550m, continued commercial success and the imminent commencement of a substantial stadium redevelopment, it looks very likely that Los Merengues will continue to enjoy top spot in next year’s edition," the Deloitte press release stated.
Barcelona, Real Madrid's major domestic rival, saw an uplift in their income too but only by €2m to €484.6m over the 12 months. In the process, Barca plummeted from second place to fourth in the money table and are now behind Manchester United and Bayern Munich. It indicates that Barcelona's success, which went unchecked for so long, is now shrivelling.
For a time during those titanic Clasico battles under Jose Mourinho and Pep Guardiola, it seemed those two would never be caught either in football or commercially. Barca, though, are paying the price for a potless season last time out, and for acrimony in the boardroom. Real, meanwhile, go from strength to strength thanks to the stability in their performances and the relentlessness of their money-making project.
Deloitte's Money League assesses revenues in three different categories - matchday, broadcast and commercial, with Madrid performing well on all counts with significant hopes for the future too.
Real Madrid's matchday revenue total currently stands at a mammoth €113.8m Though that is beneath the sums currently earned by Barcelona and United, it will only go up once the extensive €400m redevelopment of Santiago Bernabeu is complete.
The project, being carried out by German firm GMP, will include a retail area, hotel and restaurants. It will significantly boost the matchday spending of consumers at the historic arena. The estimated date of completion is in time for the 2020-21 season, with work due to begin as soon as this summer. Moreover, construction costs are expected to be covered by selling off the naming rights to the highest bidder.
Kit manufacturer Adidas was forced to deny that 345,000 "James 10" shirts were shifted in the 48 hours after the Colombian's signing last summer. Nonetheless, a leading sport PR marketing firm estimates that Real sell an average of around 1.6 million jerseys per season, more than any other team on the planet.
Commercial revenue increased from €211.6m to €231.5m in the 2015 Money League with the club enjoying a lucrative shirt sponsorship deal with the Emirates airline. Real also benefit from arrangements with global brands like Microsoft, Audi, Bwin, IPIC and Samsung. Their Adidas kit deal is reported to be worth some €40m per season alone.
Broadcast revenue has spiked again this year with €204.2m being banked. It is the first time in the 18-year history of the Deloitte Money List that over €200m was made by any one club on broadcast revenues. A run to the Champions League final will have certainly helped on this front. Real picked up €20.5m from their "market pool" which is derived from the total sum paid for the television rights in a team's domestic market.
Furthermore, they were reported to have made €140m from just their Liga games last season, dwarfing the €42m made by champions Atletico. Between them, Barcelona and Real split around 35 per cent of all Spanish television money. That is a function of Spain's lopsided TV rights arrangement, which ensures Real and Barca rake in the lion's share of revenue. The television rights for Spain's top flight are up for re-negotiation at the end of next season with a collective deal expected to be agreed. Madrid, even with the other 19 clubs in tow, will earn more than they do now.
Real's success shows no sign of slowing down but they might, however, be looking over their shoulders in a couple of years time on the Deloitte Money League.
Manchester United are likely to drop down a few places next year when their current lack of Champions League football is taken into account. But they should bounce back in 2016 with a return to the Champions League as well as through various other impending windfalls.
“The Manchester United situation is particularly interesting in that in next year’s Money League, given they haven’t got Champions League football this year, we expect them to drop – they may not even make the top five," Deloitte's Senior Manager Austin Houlihan told Goal.
"But the year after, providing they qualify for the Champions League, the Money League covering the season 2015-16 it is not unreasonable for Manchester United to potentially be at the top.
“The continued commercial uplift, with the kit deal, but also with the Champions League uplift, and the Premier League broadcast redistributions as well, there is potential for them to be top."
Real Madrid might have company at the top of football's money tree in the years to come but it will have nothing to do with complacency. With the Bernabeu being rebuilt, commercial deals secure for the years ahead and a new TV windfall to come, Madrid have the processes in place to ensure their place among the super-rich is set in stone.
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