TOP-10 of European football clubs by income in 2019

Information Agency Credinform presents a ranking of European football clubs by income in 2019. Using the Information and Analytical system Globas и базу данных Orbis, продукт Bureau van Dijk, the experts of the Agency selected TOP-10 of football clubs by 2019 total income, analyzed their sources and structure.

Table 1. Income and income structure of TOP-10 European football clubs for 2019
Rank Club Income for 2019, billion RUB Income structure, billion RUB
Games Broadcasting Commercial activity
1 (+1) Barcelona
61,1 +21,8% 11,5 21,7 27,8
2 (-1) Real Madrid
Реал МадридSpain
52,0 +0,8% 9,9 17,7 24,4
3 (=) Manchester United
50,1 +2,7% 8,5 19,2 22,4
4 (=) Bayern
45,3 +4,9% 6,3 14,5 24,5
5 (+6) Juventus
44,5 +20,0% 6,3 20,2 18,0
6 (+1) Paris Saint-Germain
43,7 +17,4% 8,0 10,7 25,0
7 (=) Liverpool
42,3 +10,6% 6,6 21,0 14,7
8 (-3) Manchester City
41,9 +7,4% 4,3 19,7 17,9
9 (+1) Tottenham Hotspur
Тоттенхэм ХотспурEngland
35,8 +21,7% 6,4 19,0 10,4
10 (-2) Chelsea
33,8 -3,2% 5,0 15,0 13,8
28 (-3) Zenit
14,8 +1,5% 0,9 1,2 12,7

Source: Information and Analytical system Globas by Credinform; Orbis database by Bureau van Dijk; Club incomes were converted into rubles at the average dollar exchange rate for January 2020.

Football club Barcelona with the highest incomes for 2019 (61,1 billion RUB) is on the top of the ranking. Commercial activity forms 46% of the budget (27,8 billion RUB) and makes the club the first among European teams by this type of income. FC Barcelona is the most recognizable sports organization in the world. For the men's soccer team stands Lionel Messi, one of the famous players on the planet. Thanks to the Argentine, the club occupies high positions in all the Tops. The increase in income over the previous year amounted to 21,8%. The increase is largely due to the signing of the French forward Antoine Griezmann. At the beginning of the 2019/20 season, Barcelona announced the signing of the 2018 World Champion for 8,2 billion RUB. The footballer not only helped increase sales of club paraphernalia, but also provided part of the income from his exclusive contracts with Puma and Head & Shoulders.

Barcelona is followed by its main rival - Real Madrid (52,0 billion RUB). The royal club earned the most from commercial activities (24,4). At the end of 2019, the club lost leadership due to unsatisfactory results in the championship and in the European arena. Real Madrid still cannot recover from Cristiano Ronaldo’s departure, sales revenue has declined, attendance has decreased, and the game of the football is far from perfect.

The third is Manchester United (50,1 billion RUB). The English club has long been turned into a successful commercial project. Mancunians earn money through the sale of paraphernalia, famous players and advertising. The most famous player in the team is the central midfielder Paul Pogba. T-shirts with his last name are the best-selling in Adidas fan shops and stores. Manchester United is a pioneer in signing record sponsorship contracts and, unlike competitors, has signed its agreements much earlier. Under an agreement with Adidas, Manchester United receives 6 billion RUB, and the contract of the title sponsor Chevrolet annually brings 5 billion RUB to the club’s treasury. However, unsatisfactory sports achievements in the championship and non-entry into the Champions League - the most prestigious European tournament, may push for the loss of the title of the most profitable club in England for the first time in 23 years.

In terms of income, Bavaria from Munich was ranked the 4th (45,3 billion RUB). The German club is the most recognizable in the world, and commercial activity for over 4 years brings more than 24 billion RUB. The team successfully performs in the German championship, winning the championship gold 5 times in a row. However, unsatisfactory results in the Champions League may affect the overall profitability of the club. The last victory in the Champions League was in the 2012/13 season, after which the team lost from one point to the final for four times.

According to the results of 2019, Turin Juventus (44,5 billion RUB) moved to the fifth position of the ranking. The club is owned by the Agnelli family, one of the richest families in Italy. They inherit the club, passing it from generation to generation. In addition to Juventus, they own automobile factories Fiat and Jeep. The team from Turin is the most titled in Italy: 35-time Champion of the domestic championship, 13-time winner of the Italian Cup, 2-time winner of the Champions League. The transition of the starry Portuguese Cristiano Ronaldo has attracted the attention of advertisers, fans and investors. Income from commercial activities grew by 30%, and total profitability increased by 20,0%.

Paris Saint-Germain earned 43,7 billion RUB. The French club ranks the second in term of income from commercial activities (25,0 billion RUB). A new partnership agreement with Nike will annually bring the club over 5 billion RUB. The collaboration of Nike Jordan and Paris Saint-Germain has contributed to the growth of sales of paraphernalia and sportswear. Thanks to their star forwards, Parisians have some of the most expensive advertising contracts among European teams. Neymar Jr. and Kylian Mbappe provide the club the leading positions in all ratings.

English football’s grandees got from 7th to 10th positions - Liverpool (7th; 42,3 billion RUB), Manchester City (8th; 4,9 billion RUB), Tottenham Hotspur (9th; 35,8 billion RUB), Chelsea (10th; 33,8 billion RUB). The clubs are not able to compete with the rest of the teams in term of income, but they are in the top due to the money earned from broadcasting. In 2019, the total value of the proceeds from the sale of the rights to broadcast the games brought the club over 74 billion RUB. The 2018/19 season was one of the most successful for the British. Liverpool and Tottenham played in the Champions League final, and Chelsea and Arsenal from London played in the final of the second most important European tournament, the Europa League. According to the results of that season, Manchester City lost to Tottenham from a couple of points to the final. However, the position of the British in the overall ranking of income may change at the end of the 2019/20 season. The finalists of the Champions League last season took off at the 1/8 stage, and the MC received a ban on playing in the Old World tournament, due to financial fraud.

It is noteworthy that St. Petersburg Zenit was in the TOP-30 of teams in term of income for 2019 (14,8 billion RUB). The highest income exceeding 12 billion RUB comes from commercial activities. Zenit is considered the richest football club in Russia. The ultimate owner of the club is JSC Gazprom. According to the results of the 2018/19 season, Zenit for the first time in 5 years returned St. Petersburg to number one and got into the Champions League.

The results of the ranking showed that all football clubs except English have incomes generated from successful commercial activities. The decrease in profitability for this type of activity can seriously affect the financial condition of organizations. Football clubs have long become global brands competing for the most profitable contract.

Changes in legislation

On March 31, 2020, the State Duma of the RF adopted the Law, according to which the Government of the RF is vested with a right for 2020 to suspend, cancel or defer tax inspections to a later date, extend the due dates for tax payments, including on special tax regimes, as well as extend the due dates for advance payments on transport and land taxes, property tax of organizations introduced by regional and municipal authorities.

In addition, the Government is granted authority to extend the due dates for filing of tax returns and financial accounts, requirements for paying taxes, fees, insurance payments, fines, penalties, as well as the decision lead time to recover taxes, fines and penalties.

The authorities of the constituent territories of the RF got the opportunity throughout the whole year 2020, beginning from January 1, to extend the due dates for paying of unified agricultural tax, unified tax on imputed income, payments on patents, as well as payments within the simplified tax system.

How the Government of the RF and regional authorities will implement in practice the rights granted by this Law, we will find out in the very near future.