Sir Jim Ratcliffe’s purchase of a 27.7% stake in Manchester United for $6.5 billion set a record for the highest price paid for a sports team with operating rights. This deal underscores Manchester United’s significant operating income of $187 million and vast global fan base of over 650 million. Forbes now values Manchester United at $6.55 billion, second only to Real Madrid at $6.6 billion. The Premier League’s new domestic television deal, worth an average of $2.1 billion per year from 2025-26 through 2028-29, ensures it will continue to dominate broadcasting revenue, outpacing other leagues. (Source: Forbes)
Despite challenges in broadcasting revenue for other European leagues, Premier League clubs continue to thrive, driving up valuations and profitability. For example, Real Madrid generated the most revenue ($873 million) and has been dominant in the Champions League, winning five of the past nine years. Other top teams by valuation include Barcelona ($5.6 billion), Liverpool ($5.37 billion), Manchester City ($5.1 billion), and Bayern Munich ($5 billion). Sponsorship deals have also been lucrative, with Real Madrid earning an average of $205 million annually from jersey sponsors.
The financial success of these teams is heavily tied to their performance in the Champions League, with substantial earnings from advancing in the tournament. Seven teams, including Real Madrid ($144 million) and Manchester City ($118 million), earned over $100 million through the semifinals this year. As UEFA expands the Champions League format next year, increasing the number of teams and matches, revenue is expected to rise by one-third, further enhancing the financial prospects of Europe’s top clubs.
Comments