The tireless and authoritative Swiss Ramble has surfaced from his Zurich bunker to comment on the latest Deloitte Money League. I highlight some of his fascinating tweets here.
Revenue has obviously been significantly impacted by
COVID-19. Deloitte estimate that the Money league clubs have missed out on well
over €2 bn of revenue over the 2019/20 and 2020/21 season as a result of the
pandemic.
That said, Top 20
Money League clubs’ 2020/21 revenue was more or less unchanged at £7.2 bn,
despite match day and commercial falling £995m (91%) and £196m (6%)
respectively, as this was compensated by broadcasting rising £1.2 bn (43%),
largely due to deferred 2019/20 money.
Revenue for Top 20 clubs was basically flat at €8.2 bn,
which is €1.1 bn (12%) lower than 2019 peak of €9.3 bn, though still 3rd
highest ever total. Moreover, revenue has more than doubled from €3.9 bn in
2009, growth led by broadcasting €2.9 bn and commercial €2.3 bn.
Broadcasting rose €1.3 bn (43%) from €3.2 bn to €4.5 bln, a
record high for this revenue stream, largely due to the deferral of some
revenue from 2019/20 to 2020/21 for games played after the accounting close,
both in domestic leagues and UEFA competitions.
Commercial fell
€222m (6%) from €3.7 bln to €3.5 bln. The impact of COVID was not as
significant as expected, as lower merchandising sales, impacted by the closure of
retail outlets, were partly offset by new sponsorships and partnership
agreements for several Money League clubs.
The rise of Manchester City
Manchester City climbed five places to top the Money League for
the first time (only the fourth club to ever do so), as revenue increased £89m
to £571m. Three other clubs reported more than half a billion: Real Madrid, Bayern
Munich and Barcelona (down three places).
City have proved
most resistant to COVID, having actually grown revenue by €34m (6%) since the
pandemic struck. All other leading clubs from the Big Five leagues have
suffered large reductions. City have increased revenue by more than half a
billion since 2009.
It’s a similar
story when comparing Manchester City and Liverpool, as City have higher
broadcasting (£297m vs. £269m) and much higher commercial (£273m vs. £211m).
Liverpool will reduce the deficit via higher match day, but it is difficult for
the Reds to close the gap.
£571m overtook Manchester United’s £494m with City ahead of
United in both broadcasting (£43m higher, due to winning Premier League and
reaching Champions League final) and commercial (£41m). United were badly hit
by £80m reduction in match day, which was twice as much as City’s £41m fall.
In North London the
Haringey club overtook the one in Islington in 2019 and revenue now outperforms
their rivals in broadcasting (£22m higher) and commercial £(15m). Spurs will
also benefit from their new stadium with the return of fans. It is imperative
for Arsenal to qualify for the Champions League.
There are no fewer than 10 English clubs in the top 20,
including Manchester United £494m (5th), Liverpool £487m (7th), Chelsea £437m
(8th), Spurs £360m (10th) and Arsenal £325m (11th). There were three new English
entrants to the top 20: Leicester City, West Ham and Wolves.
The total number of English clubs in top 20 increased from 7
to 10 (the same as the previous high in 2017), followed by Spain and Italy with
three apiece. Germany fell from four to two, as 2019/20 was boosted by them
completing the season. France and Russia both had one club. England has an amazing 14 clubs in the top
30, which is twice as much as the next highest country, Italy seven, followed
by Spain four, Germany three, France one and Russia one.
In England Man City £571m overtook both United £494m and Liverpool
£487m to top the table. Liverpool fell two places to 7th, while Chelsea’s
Champions League win helped retain 8th place. Wolves entered Money League for
first time in 17th, while promotion saw first appearance for Leeds United (23rd).
Clubs were protected from a worse COVID impact by higher
broadcasting revenue, especially in England with Man United up £115m (return to
Champions League) and Champions League finalists Man City £107m and Chelsea £91m.,
who earned €120m for reaching he Champions
League final.
The importance of European qualification is clear,
especially for Chelsea and Man City, who earned €120m for reaching the Champions
League final. Manchester United were
boosted by returning to the CL, then reaching the Europa League final. Spurs were hurt by dropping to the Europa
League, though this competition helped Leicester City.
The two Spanish giants both saw large revenue falls, though Rea
Madrid £567m was enough to retain 2nd place. FC Barcelona's drop from £627m to
£515m meant they fell from 1st to 4th, their lowest since 2014. Still a big gap
to Atleti £295m and Sevilla £177m
(boosted by CL return).
The only club
outside the Big Five leagues to feature in the Money League was Zenit Saint
Petersburg (20th with £188m). [From
neutral Switzerland the Swiss Ramble cannot mention that President Putin’s home
town club are unlikely to feature next year]. However, Benfica and Ajax, who
featured in the top 30 in the previous season, fell below the threshold.
Main revenue streams
Six clubs earned
more than quarter of a billion pounds from broadcasting, namely Man City £297m,
Real Madrid £275m, Chelsea £274m, Liverpool £269m, FC Barcelona £256m and Manchester
United £255m. English clubs benefited most from revenue deferrals, in the same
way they were worst hit last year. The
size of the Premier League TV deal is highlighted by the significant percentage
generated by “smaller” English clubs, e.g. Wolves 87%, West Ham 83%, Leicester
City 82% and Everton 76%.
Commercial held up pretty well with Bayern leading the way
with £306m, followed by PSG £299m, Real Madrid £285m and the highest English
club Man City £273m. Largest year-on-year growth at PSG £37m and City £23m,
though big reductions over £50m for Barca, Madrid and Manchester United.
During the pandemic, commercial partnerships have become
increasingly important with four clubs generating more than half of their
income from this revenue stream: Zenit 76% (mainly Gazprom), PSG 61%, Bayern
56% and Real Madrid 50%. Then come Man City with 48%.
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