Back in January, Manchester United was the first team valued at $3 Billion. Now, according to Forbes, Real Madrid is worth $3.4 billion.
The boost in Real Madrid’s value secures its spot as the most valuable sports team in the world for now, although Manchester United are right behind them. The publicly traded English football team had an enterprise value of $3.3 billion.
The financial results announced by Real Madrid yesterday for fiscal 2012-13 show revenue increasing 5.5%, to $686 million. Real Madrid and Spanish rival Barcelona are the only sports teams that generates over $600 million in annual revenue, both having done so each of the past three years.
Real Madrid’s operating income (earnings before interest, taxes, depreciation and amortization, and the disposal of non-current assets like players) increased 2.3%, to $174 million (in Euros, revenues went up 1.3% and operating income fell 1.5%).
Real Madrid’s balance sheet also became stronger over the past year, with the team’s debt-operating income ratio falling to 0.6 from 0.8.
on Real Madrid’s heels are Manchester United, which has yet to post its 2012-13 full-year results. But in the third quarter the English soccer team posted stellar results, with record revenue of $143 million and operating income of $39 million.
For the full year, Manchester United believes revenue will be around $554 million and operating income will come in at roughly $168 million. If the Red Devils do indeed finish the year with those results, the Merengues will still maintain its slight valuation lead over the English team.
But surprises can always emerge from the lucrative Champions League , where payouts to teams generally depends on performance. The two clubs that contested the 2012/13 final in London – German Bundesliga rivals FC Bayern München and Borussia Dortmund – each received substantial amounts reflecting their long campaigns and memorable contributions. [Source: Forbes.com]
|Rank||Team||Current Value ($mil)||1-Yr Value Change (%)||Debt/Value
|Revenue ($mil)||Operating Income ($mil)|
Values calculated April 2013