Forbes Values Real Madrid at $3.4 Billion

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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)
1

Real Madrid

3,300 76 5 650 170
2

Manchester United

3,165 42 18 502 144
3

Barcelona

2,600 99 6 613 160
4

Arsenal

1,326 3 29 368 55
5

Bayern Munich

1,309 6 5 468 88
6

AC Milan

945 -4 5 326 19
7

Chelsea

901 18 0 409 82
8

Juventus

694 17 12 248 20
9

Manchester City

689 56 7 362 -53
10

Liverpool

651 5 17 296 19
11

Tottenham Hotspur

520 -8 15 226 36
12

Schalke 04

498 -15 0 221 47
13

Borussia Dortmund

456 16 18 240 54
14

Inter Milan

401 -18 16 236 -89
15

Olympique Lyonnais

368 -4 8 167 -6
16

Corinthians Paulista

358 15 119 10
17

Napoli

330 16 0 188 76
18

Hamburg SV

300 -16 13 154 6
19

Olympique Marseille

285 -18 27 167 -13
20

Newcastle United

263 9 0 146 16

Values calculated April 2013

Karl Lusbec

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