Contact: Ian Burrows
Deloitte
Public Relations
+44 (0) 20 7303 6410

• Manchester United retain top position with turnover of € 251m
• English and Italian clubs dominate with 12 of the top 20
• Income generation from stadia is a key contributor to revenues
• European football's  leading clubs generate more income than US sports franchises

Manchester United is again placed first in the Rich List of the world's top football clubs, based on income from the 2002/03 season. Generating income of over € 250 million, United were well ahead of their nearest rivals and occupied the top position for the seventh successive year of the Deloitte Football Rich List.

Dan Jones, Director of the Sports Business Group at Deloitte, commented: "The top clubs in the world's number one sport are generating more income than ever before.  Broadcast income is the largest single source for most of the clubs and despite the widespread speculation of a collapse in media values, we think this is unlikely.  At the same time, many of football's leading clubs have a great, and as yet underused, opportunity to significantly develop other income streams, particularly from their stadia.  For instance, Manchester United’s matchday income of €101m is over three times greater than their closest Italian rivals."

The global top 20 is entirely populated by European clubs, with English and Italian clubs occupying 12 of these positions.  The remaining positions are filled by three clubs from each of the German Bundesliga and Spanish Primera Liga and one each from the top divisions in France and Scotland. 

The Italian duo of Juventus and AC Milan are in 2nd and 3rd position respectively, their positions supported by the largest broadcasting incomes in world football and their appearance in the 2003 Champions' League Final.  Whilst the Spanish giants, Real Madrid, may have a reputation as the world's number one glamour club, they hold 4th position in the Deloitte Football Rich List.  Schalke 04 is the only debutant in the top 20, positioned at 14th thanks to an enterprising stadium development and strong domestic performance.

Commenting on the importance of clubs generating significant income from their stadia on matchdays and non-matchdays, Gerry Boon, Partner in the Sports Business Group at Deloitte, said:  "Whilst clubs are much more commercially focused than they were a decade ago, there's still a lot more that clubs in Continental Europe could do strategically to improve the venue and facilities they operate, their stadium utilisation and also the income yield they generate from their fanbase."

Whilst income is the best publicly available measure of "financial muscle", the amount that a club chooses to spend helps determine their overall financial position.  Achieving a better balance between income and costs remains the key financial challenge for most clubs.  Dan Jones observes: "It's a paradox that the top 20 includes a couple of clubs that are having some financial difficulty -  but their income is amongst the highest in the world, so the source of any financial difficulty doesn't lie with the revenues they earn."

Paul Rawnsley from the Sports Business Group at Deloitte commented: "It has been generally recognised that the game needs to enhance its financial credibility and, to help deal with this, regulation is a growing theme in European football.  From the 2004/05 season we'll see the first stages of the UEFA Club Licensing system in place, including a requirement for clubs to meet certain financial criteria.  This may appear harsh on those who have sound financial practices, but the responsibility for the imposition of increased regulation lies squarely with those whose house is not in order."

As part of the publication, FootballBusiness International provide a high level analysis of the income generation of US Sport teams.  According to published data, Major League Baseball's New York Yankees generated more income than any other US Sports Team in the 2002/03 season, but at € 243 million, this was still less than Manchester United's total.  The NFL's Tampa Bay Buccaneers, headed by the Glazer family, who also hold a growing stake in Manchester United, generated income of € 146 million -  making them around 60% of Manchester United's 'size".

Summary of the Deloitte Football Rich List, published in conjunction with FootballBusiness International

Position (Prior year position)	Club	Income (€m)
1 (1)	Manchester United	251.4
2 (2)	Juventus FC	218.3
3 (4)	AC Milan 1899	200.2
4 (6)	Real Madrid CF	192.6
5 (3)	FC Bayern München	162.7
6 (12)	Internazionale FC 1908	162.4
7 (8)	Arsenal	149.6
8 (5)	Liverpool	149.4
9 (13)	Newcastle United	138.9
10 (7)	Chelsea	133.8
11 (10)	AS Roma	132.4
12 (15)	BV 09 Borussia Dortmund	124.0
13 (9)	FC Barcelona	123.4
14 (n/a)	FC Schalke 04	118.6
15 (16)	Tottenham Hotspur	95.6
16 (11)	Leeds United	92.0
17 (14)	SS Lazio	88.9
18 (17)	Celtic	87.0
19 (20)	Olympique Lyonnais de Lyon	84.3
20 (n/a)	Valencia CF	80.5

Source: Sport Business Group at Deloitte

 

 

US Sports Teams -  income comparisons (Top 10)

Position	Club		Income (€ m)
1	New York Yankees	MLB	243.8
2	Washington Redskins	NFL	197.7
3	Boston Red Sox	MLB	184.6
4	Seattle Mariners	MLB	181.1
5	Dallas Cowboys	NFL	172.4
6=	San Fransisco Giants	MLB	168.1
6=	Houston Texans	NFL	168.1
8	New England Patriots	NFL	164.6
9	Cleveland Browns	NFL	151.5
10	New York Mets	MLB	150.6

Source: FooballBusiness International

Ends

Notes to editors
For further information or to speak with a member of the Sports Business Group at Deloitte please call Ian Burrows (Deloitte Press Office) on +44 (0)7766 244702 or +44 (0)20 7303 5054, or email iburrows@deloitte.co.uk

This press release is based upon the Deloitte Football Rich List, published in conjunction with FootballBusiness International in March 2004 (contact: Brian Sturgess, Matthew Glendinning on +44 (0) 207 329 3500). As explained more fully in the publication, the income figures are as extracted from financial statements or other reliable sources for the 2002/03 financial year, or the latest available calendar year in some cases.  All figures for the 2002/03 season have been translated at 30 June 2003 exchange rates.  Comparative figures for the previous years have been translated as at 30 June for the relevant year.

Unless stated, the figures exclude taxation and income from player transfers.  For the purpose of clarity and comparability, significant non-football activities or capital transactions have also been excluded.

There are many ways of developing an understanding of the relative wealth or value of football clubs.  For the Deloitte Football Rich List, income is used as the most easily available and comparable measure of financial wealth.

About the Sports Business Group at Deloitte
Over the last decade Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.

For further information on our services you can access our website at www.deloitte.com/uk/sportsconsulting

About Deloitte
Deloitte & Touche LLP is the fastest growing major professional services firm based in 21 UK locations with 10,000 staff nationwide and fee income of £1,228 million in 2002/2003.  It is a member firm of the Deloitte Touche Tohmatsu professional services organisation, delivering world class audit, tax, consulting and corporate finance services, employing 120,000 people in over 140 countries.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.