ManUtd top Forbes football rich list, but does it matter?
April 22, 2010
According to Forbes magazine, United have maintained their position as the richest football club in the World. Valued at £1,114m ($1,835m), United are miles ahead of second placed Real Madrid. The data is calculated using TV money, sponsorships, and sales of tickets and merchandise.
Here is the list in detail:
# – Club – Value – Debt/Value Percentage
———————————————————-
1 – Manchester United $1,835 46%
2 – Real Madrid $1,323 54%
3 – Arsenal $1,181 41%
4 – Barcelona $1,000 0%
5 – Bayern Munich $990 14%
6 – Liverpool $822 47%
7 – AC Milan $800 0%
8 – Juventus $656 3%
9 – Chelsea $646 8%
10 – Inter Milan $413 0%
11 – Schalke 04 $384 50%
12 – Tottenham Hotspur $372 29%
13 – Olympique Lyonnais $333 10%
14 – Hamburg SV $329 0%
15 – AS Roma $308 0%
16 – Werder Bremen $274 0%
17 – Olympique Marseille $262 0%
18 – Borussia Dortmund $261 32%
19 – Manchester City $258 0%
20 – Newcastle United $198 8%
For United fans, the worrying part of the equation is the debt/value percentage. Thanks to the Glazer family, 46% of United’s value is under debt. Arsenal fans might remind you from time to time how our club suffers from debt, and how financially strong theirs is. That is certainly not the case, as 41% of their value is debt as well. The likes of Barcelona, both Milans and Roma are totally debt free. An interesting inclusion in the Top 20 list is Newcastle United, who spent the current season in the second tier of English football.
As long as United’s debts are so high, being the richest club means nothing as major chunk of the income must be used for debt servicing. Big name signings and purchases are less likely in such conditions.
Love United Hate Glazer
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I know it’s rather late to comment on this, but just thought I’d say that the majority of the 41% that Arsenal are in debt is risk-free debt, which is because of the recently built Emirates Stadium still being paid back in yearly chunks and explains why Arsenal make a continuous profit and will do for the many years ahead.
So just like looking at match facts, stats like these have to be looked into much more thoroughly than just reading the numbers.
Take care.
Keith