Value
Life is good if you own or are a member of a football franchise. The most popular sport in the world has never generated more interest, and by extension, it has never been more lucrative. Every franchise is steeped in sponsorships. They are raking in money hand over fist with jersey sales and other memorabilia. Before the coronavirus pandemic, they filled stadiums with six- figure seating to capacity. Even now, with the state of live sports in flux, football franchises are immensely profitable. They maintain many of their advertising revenue streams, and the betting interest around the globe continues to set records every year. A place like Sportsbook Bonus offers so many different football odds and wager types for a reason: because it would be foolish not to, when the market for them is so enormous. Put another way: Football is everywhere, enjoyed by people in every country. And with tha popularity comes franchise valuations beyond even the wildest expectations. Just how much money are we talking about? Well, we’ve put together a list of the most valuable football franchises in the world to find out. Please note that all the sticker prices are for the 2020 calendar year and determined by the fine folks over at Forbes.
Real Madrid - $4.24 Billion
This is...predictable. Real Madrid is a powerhouse club that has topped the valuation pecking order for years. With a net worth of over $4.2 billion, it is actually one of the seven most valuable sports franchises, period. Real Madrid outpaces other football franchises in nearly every earnings category. Its sponsorships, merchandising and other commercial operations are worth over $1.5 million on their own, and they have one of the fattest broadcasting deals in existence.
FC Barcelona - $4.02 Billion
Barcelona just recently cracked the $4 billion valuation threshold, making it only the eighth sports franchise, across all leagues, to hit that mark. While Real Madrid towers over the field in most earnings categories, Barcelona has proven to have the most profitable matchday value. They do more than $800 million in cash traffic when they host battles on their own pitch. No, this isn’t all pure profit. But it’s still a monstrous number all the same.
Manchester United - $3.81 Billion
Expect Manchester United to follow in the footsteps of Real Madrid and Barcelona by breaking the $4 billion valuation mark sometime soon. They hold up well in every earnings category; they actually have the second highest broadcast value, with a deal that reels in nearly $1.7 billion. This rise in value has been swift and unrelenting. The Glazer family purchased Manchester United back in 2005 for the price of $1.4 billion. The franchise has more than doubled in value since then, rising at a rate of nearly $167 million per year. If Manchester United’s financials continue with their current trajectory, they will be just the ninth sports team to reach the $4 billion touchstone around the 2022 season.
Bayern Munich - $3.02 Billion
It’s pretty easy to see how Bayern Munich wedged their way into the $3 billion club. They have one of the best overhead-to-profit ratios. At present, they are generating around $751 million, on average, of revenue per year. Their operating costs, however, don’t even crack $130 million. And because they carry $0—yes, $0—in active debt, the difference of more than $650 million registers as pure profit. However, if they’re ever going to make the leap into Manchester United or Barcelona territory, they’ll have to make gains in their brand awareness. Their brand itself trails others, with an overall valuation of $392 million, and they don’t carry the match-day appeal of a Real Madrid or Barcelona.
Manchester City - $2.69 Billion
Though Manchester City trails all their top competitors in pure valuation, they are actually on the fast-track for growth. Just this past year, their franchise worth increased by nine percent. For those who don’t feel like doing the math, that’s the equivalent of roughly $260 million. That this growth took place during a year in which Manchester City had to grapple with the coronavirus pandemic cannot be overstated. In fact, their nine percent growth during this time is the largest of any club on this list, comfortably beating out Real Madrid (up four percent) and Barcelona (down one percent). Whether this upward pace can continue is anyone’s guess. Sports leagues will be feeling the ramifications of the coronavirus pandemic for years. Still, Manchester City is positioned well to ride this out and come out better at the other end—as are, frankly, most of the world’s football franchises..