The Deloitte Football Money League is a study made by the accounting company Deloitte and it shows us the ranking of the clubs that generated more revenue in a given year (revenue excludes player transfer fees, VAT and other sales-related taxes).
It is also important to note that all conclusions drawn below are related to the analysis of the values presented by only the Top-20 clubs.
Club operating revenues can be divided into 3 main categories: - Broadcast: Access to broadcast the games (TV rights); - Commercial: involves all the club's capacity to generate money through its brand, whether through Merchanding, Sponsorship, or other strategies; - Matchday: it concerns all the revenue realized through the sale of tickets to watch live matches of that team.
As can be seen in the previous graph, the biggest sources of operating revenue for clubs come from both the Commercial and Broadcast levels, and Matchday ends up being not so lucrative. Liverpool, despite being in 7th place, managed to be the club that had the brightest future in Broadcasts on that year, the result of good campaigns in the Premier League and the Champions League in the 2018/2019 season,
As can be seen in the previous graph, the biggest sources of operating revenue for clubs come from both the Commercial and Broadcast, and Matchday ends up being not so lucrative as both mentioned above.
In our view, we believe that the more reliable operating revenue tool clubs can possess are commercial-related profits, as it comes from their ability to maximize the value of their brand. The value of the clubs' brand also influences the final value of the Broadcast, as it is influenced by some external factors such as the value of their home league, the tv rights distribution, or even the multiculturalism present in the competition. Regarding the Matchday, this will always be possible to enhance, but it will never come close to the values presented previously.
Manchester United, after a few years of a devaluation of the brand, now seems to be on its way to new glory days, like Bayern Munich, PSG, Manchester City and Liverpool appear to be serious candidates for this title. In the next years chance Premier League and LaLiga, the first placing 5 teams in the top-10, generating almost 50% of the total revenue of the top-20 in 2019 (41.32%).
Manchester United, after a few years of a consistent brand devaluation, now seems to be on its way to new glory days, like Bayern Munich, PSG, Manchester City and Liverpool appear to be serious candidates to catch up in a near-future apparently...
In terms of the evolution of Top-10 revenues in the last 5 years, it's undeniable that the values have drastically increased.
Barcelona's stunning growth from 2018 to 2019 made them jump to the throne of the team with the most profit, in clear contrast with Real Madrid, who deeply felt the departure of the Portuguese star... Liverpool, despite being in 7th place, managed to be the club that had the largest share in Broadcasts the year, a result of good campaigns in the Premier League and the Champions League in the 2018/2019 season,
Manchester United, after a few years of a consistent devaluation, now seems to be on it's way to new glory days, just like Bayern Munich, PSG, Manchester City, and Liverpool all face a brilliant potential over the next few years.
The highlights of the 11th to the 20th place, clearly go to the distance of Arsenal in relation to other clubs, which shows that he will be able to fight for the Top-10 in the next years.
Next in line are Borussia Dortmund, Altético Madrid, and FC Internazionale Milano who also appeared with a very significant increase in revenues in recent years.
To conclude, we leave only 3 numbers, which demonstrate the impact that the Football sector can have in the Economy, in 5 years, 20 Clubs, managed to generate operating revenues close to 40 Billion Euros, a number that must be taken into account when discussing the importance of this sector for society.
As usual, we leave you with a few questions to reflect on in relation to this topic:
1. Have the 2 Spanish powerhouses managed to maintain financial dominance over the next decade? (Real Madrid has already started to suffer from the loss of its biggest star, while Barcelona should face the same problem soon.)
2. Will any of the National Leagues, be able to compete with the Premier League's strategic model in the coming years?
3. Will the Football sector as a whole, succeed in turning around the new reality (Covid-19), presenting solutions capables of making clubs continue to increase their level of revenue from year to year?
Soccer Analytics - Data Analysis
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