The European Super League misadventure and subsequent fan protests provided a grim reminder that football clubs are huge business ventures whose sole motive is profit maximisation. Over the past few decades, more and more clubs have been listed on stock exchanges worldwide, an idea that was pioneered by Tottenham Hotspur way back in 1983.
While other football clubs were apprehensive of the idea in the 80s, Manchester United eventually followed suit in 1991. By the turn of the century, over twenty clubs were listed in stock exchanges.
Money has become an increasingly important factor on the football pitch as well. Cash-rich Premier League clubs and the top teams of Germany and Spain have dominated European football in the past few decades.
Without further ado, let’s take a look at the five most valuable football club brands in 2021, as per Brand Finance’s Football 50 report.
#5 Bayern Munich | $1.25 billion
Bayern Munich are the most successful club in the history of German football; they recently claimed a record-extending ninth consecutive Bundesliga title.
With a tally of 31 Bundesliga titles and six in the Champions League, it is no surprise Bayern Munich are the most valuable sports club in Germany. Bayern Munich are also one of the most valuable football clubs globally; they are in the top ten in the 2021 Forbes World’s Most Valuable Sports Teams list.
Bayern Munich were among the top earners in the 2019-20 financial year, registering their highest figures in commercial and broadcasting revenues. Their revenues have roughly doubled over the past decade, thanks to lucrative deals with corporate global giants like Adidas, Allianz, Audi, Deutsche Telekom and SAP, to name a few.
Moreover, the German powerhouse also have sponsorship deals with the likes of Qatar Airways, Coca-Cola and Konami, among others. According to some estimates, Bayern Munich’s commercial deals alone generated €360.5 million during the last FY.
#4 Manchester City | $1.31 billion
Manchester City have sealed their third Premier League title in four years as they have emerged as England’s most successful club in the past decade.
The Cityzens have won their fifth Premier League title in the last ten years, including the sensational 2011-12 triumph, which ended their long 44-year wait for a league title. After several ownership changes and tumultuous spells over the years, the Manchester-based club has seen a massive turnaround in fortunes, both on and off the pitch, since 2008.
The turning point was Manchester City’s takeover by the Abu Dhabi United Group, headed by Sheikh Mansour, who has a personal wealth of over £17 billion and a family fortune of over $1 trillion. Since then, Manchester City have become one of the best financially and administratively-run sports clubs in the world. They were ranked 13th in the 2021 Forbes World’s most valuable sports team list.
Like most football clubs worldwide, Manchester City suffered a loss in the 2019-20 financial year; they registered an 11% decline in revenue from the previous year. However, Manchester City have witnessed an increase in commercial revenue, thanks to sponsorship deals with Etihad Airways, PUMA, Nissan and EA Sports, to name a few.
#3 Manchester United | $1.32 billion
Manchester United have just eclipsed their noisy neighbours by $10 million to claim a spot in the top three of Brand Finance’s Football 50 report of most valuable clubs.
The bragging rights of the Manchester derby well and truly belong to Manchester United, as United also appear above City in the Forbes 2021 World’s Most valuable sports team list.
Appearing in 11th spot in the said list, the Glazer family-owned Manchester United previously occupied the top spot for three consecutive years between 2010 and 2012. The era of Sir Alex Ferguson elevated Manchester United to mythical proportions, yielding the club massive dividends both on and off the pitch.
Despite their failure to secure a Premier League or Champions League trophy since Sir Alex Ferguson’s retirement, Manchester United remain England’s biggest and most successful club. That is partly due to the legendary Scot’s staggering 38-trophy haul with the Red Devils.
In the financial year ending 30 June 2019, Manchester United’s sponsorship revenue amounted to £173 million, along with merchandising and retail revenue of £102.1 million.
In their Investor Relations report for 2019, Manchester United reported earnings of £241.2 million and £110.8 million in broadcasting and matchday revenues, respectively.
#2 Barcelona | $1.48 billion
Barcelona are one of the most successful clubs in the history of the game. They have been graced by some of the greats in the modern game, like Lionel Messi, Xavi and Andres Iniesta, who came through their famed La Masia academy.
Barcelona’s success on the football pitch is reflected in their listing in the Brand Finance Football 50 report. The Blaugrana’s valuation is estimated to be a whopping $1.48 billion. However, the number should be viewed with a pinch of salt, as the Blaugrana have a staggering debt of €1.2 billion - one of the highest in world football.
According to reports, Barcelona owe money for quite a few transfer deals, including Philippe Coutinho from Liverpool and Frenkie De Jong from Ajax. The club also reportedly owe money in the form of staff debt, tax debt and trade creditors.
That also explains why Barcelona joined the now-defunct European Super League, as they would have been able to clear a large chunk of their debts.
However, Barcelona still remain one of the most followed football clubs globally and have a massive following and big sponsorship deals. The Blaugrana earned sponsorship revenue worth €305.2 million in the 2019 financial year from the likes of Nike, Rakuten, Beko, 1xBet and Konami, to name a few.
#1 Real Madrid | $1.49 billion
Real Madrid are the most successful club in Spanish football and have been deemed the 'Club of the Century' for their exploits in the 1900s.
Los Blancos’ surge to the top of the football world was spearheaded by Florentino Perez’s 'Galactico' transfer policy. That strategy brought some of modern football’s biggest names to the Spanish capital, including Luis Figo, Ronaldo Nazario, Zinedine Zidane, David Beckham and Cristiano Ronaldo, to name a few.
In an interview, Florentino Perez explained the importance of big-name signings, saying:
“When Beckham came, we went from earning €7 million a year to €45 million a year through our deals with our sponsors. There are certain players who are very profitable because they have spectacular commercial repercussions that earn the club money.”
Real Madrid have been ranked the most valuable football club in the world for a third consecutive year in Brand Finance’s Football 50 report. Between 2013-15, Los Blancos also topped the Forbes World’s most valuable sports teams list on three occasions.