In Now In Sports’ annual ranking of the most valuable soccer teams, Spanish rivals Barcelona and Madrid swap places, with the former now in first and the latter in second. Manchester United holds onto its third-place position.
European soccer competitions generate a lot of money, which is one of the reasons why Real Madrid is now worth $5.1 billion. This is 7% more than last year, and it makes Real Madrid once again the top of the world’s most valuable soccer teams list.
Real Madrid is set to have a record-breaking season, with estimates of over $100 million in earnings. This is primarily due to their 35th domestic league title in 2021-22, as well as qualifying for the eighth Champions League final. Last week, Real Madrid also announced a new partnership with Sixth Street and Legends. As part of the agreement, Sixth Street will have the right to participate in the operation of certain businesses of the new Santiago Bernabéu stadium for 20 years. To finance their new stadium, Real Madrid borrowed an additional $236 million from JP Morgan and Bank of America in November, bringing the total amount borrowed from these banks to $842 million.
Now In Sports has released its annual ranking of the most valuable soccer teams, and once again, Spanish powerhouse Real Madrid tops the list. This is the sixth time in 18 years that Real Madrid has been named the most valuable team in the world, with their estimated worth rising to $5.1 billion this year.
Barcelona is continuing to invest in its stadium infrastructure, spending $1.6 billion on a new facility that will be the largest soccer stadium in Europe. To help finance this ambitious project, the club has secured a multi-year $458 million shirt and stadium sponsorship deal with Spotify. Additionally, it is reportedly close to finalizing a $960 million deal with Goldman Sachs and All Sports Finance, which would give these organizations a 30% stake in future broadcast revenues and a portion of revenue from the new stadium complex. Worth $5 billion, up 6% from last year, Barcelona is now the second-most-valuable soccer team – tied with the NFL’s New England Patriots as the seventh-most-valuable team across all sports.
Soccer fans rejoice! The top three most valuable soccer teams in the world are Manchester United, FC Barcelona, and Real Madrid. These teams have die-hard fans and generate a lot of revenue. Manchester United is up 10% to $4.6 billion. The Red Devils have by far the most supporters of any English team and, with $128 million of operating income during 2020-21, were the second-most-profitable team on our list.
THE WORLD’S MOST VALUABLE TEAMS
Even with the reduced attendance at games due to the Covid-19 pandemic during the 2020-21 season, the average value of the top 20 teams still increased by 10%. This is due to the teams’ strong financial performance, with an operating income of $860 million on $9.68 billion of revenue. This average debt-to-enterprise value ratio of 9% indicates that these teams are in a good position to weather any further economic challenges.
AVERAGE TEAM VALUES
Though some might ask “Why,” the answer is quite clear. The top soccer teams are global brands with rich television deals and massive numbers of supporters. Just this month, a group led by Todd Boehly and Clearlake Capital paid $3.1 billion for Chelsea from Roman Abramovich. This is second only to the $3.2 billion paid for the NBA’s Brooklyn Nets in 2019. The group promised to commit another $2.16 billion in future investments, including the stadiums used by Chelsea’s men’s (Stamford Bridge) and women’s (Kingsmeadow) soccer teams.
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Elliott Management has proved that even the most tarnished soccer brands can be quickly turned back into gems. After taking over AC Milan in 2018 when its owner defaulted on a loan payment, Elliott invested hundreds of millions of capital into the club, eliminating almost all of the team’s debt and lowering player spending relative to revenue. As a result, AC Milan ended fiscal 2021 with positive equity of $70 million.
At the same time, AC Milan improved on the pitch. Last May, the team qualified for the Champions League for the first time in seven years and this season captured its first Serie A title in 11 years. The investment firm may soon sell AC Milan for in excess of $1.1 billion – proving that with the right ownership, even the most tarnished brands can shine again.
Most Valuable Soccer Teams
1. REAL MADRID
- Value: $5.1 billion
- 1-Yr Change: 7%
- Owner: Club members
- Operating Income: $90 million
2. BARCELONA
- Value: $5.0 billion
- 1-Yr Change: 5%
- Owner: Club members
- Operating Income: $17 million
3. MANCHESTER UNITED
- Value: $4.6 billion
- 1-Yr Change: 10%
- Owner: Glazer family
- Operating Income: $128 million
4. LIVERPOOL
- Value: $4.45 billion
- 1-Yr Change: 9%
- Owner: John Henry, Tom Werner
- Operating Income: $104 million
5. BAYERN MUNICH
- Value: $4.275 billion
- 1-Yr Change: 1%
- Owner: Club members
- Operating Income: $102 million
6. MANCHESTER CITY
- Value: $4.25 billion
- 1-Yr Change: 6%
- Owner: Sheikh Mansour bin Zayed Al Nahyan
- Operating Income: $156 million
7. PARIS SAINT-GERMAIN
- Value: $3.2 billion
- 1-Yr Change: 28%
- Owner: Qatar Sports Investments
- Operating loss: $102 million
8. CHELSEA
- Value: $3.1 billion
- 1-Yr Change: -3%
- Owner: Todd Boehly, Clearlake Capital
- Operating Income: $45 million
9. JUVENTUS
- Value: $2.45 billion
- 1-Yr Change: 26%
- Owner: Agnelli family
- Operating Income: $26 million
10. TOTTENHAM HOTSPUR
- Value: $2.35 billion
- 1-Yr Change: 2%
- Owner: Joseph Lewis, Daniel Levy
- Operating Income: $127 million
11. ARSENAL
- Value: $2.05 billion
- 1-Yr Change: -27%
- Owner: E. Stanley Kroenke
- Operating Income: $53 million
12. BORUSSIA DORTMUND
- Value: $1.8 billion
- 1-Yr Change: -5%
- Owner: Bernd Geske, Evonik Industries
- Operating Income: $20 million
13. ATLETICO DE MADRID
- Value: $1.5 billion
- 1-Yr Change: 50%
- Owner: Miguel Gil, Enrique Cerezo, Ares Management, Idan Ofer
- Operating Income: $45 million
14. AC MILAN
- Value: $1.2 billion
- 1-Yr Change: 115%
- Owner: Elliot Management
- Operating Loss: $16 million
15. INTER MILAN
- Value: $1.0 billion
- 1-Yr Change: 35%
- Owner: Zhang Jindong, LionRock Capital
- Operating Income: $3 million
16. EVERTON
- Value: $940 million
- 1-Yr Change: 43%
- Owner: Farhad Moshiri
- Operating Loss: $20 million
17. LEICESTER CITY
- Value: $925 million
- 1-Yr Change: 103%
- Owner: Khun Aiyawatt Srivaddhanaprabha
- Operating Income: $16 million
18. WEST HAM UNITED
- Value: $900 million
- 1-Yr Change: 77%
- Owner: David Sullivan, David Gold
- Operating Income: $42 million
19. LEEDS UNITED
- Value: $800 million
- 1-Yr Change: not ranked in 2021
- Owner: Andrea Radrizzani, 49ers Enterprises
- Operating Income: $51 million
20. ASTON VILLA
- Value: $750 million
- 1-Yr Change: not ranked in 2021
- Owner: Wes Edens, Nassef Sawiris
- Operating Income: $12 million
