As per a report by Deloitte’s Football league, Barcelona is one of the richest football club in the world at present. The Barcelona club has taken over Real Madrid this year and has achieved the stature of the richest football club.
The revenue of the football team soared to €840.8m. The football club has 10% more wealth as compared to the rival team Real Madrid. Manchester United is the third richest club.
How Barcelona became the richest football club in the world?
Barcelona’s wait to become one of the most valuable football clubs has been pretty long. When Deloitte published the first list of richest football clubs in the world, in the year 1998, Barcelona was at the 6th place. For the year 2000-2001, Barcelona didn’t even get the top 10 spots. For some duration during the year 2003-05, it got a ninth place. Since the year 2005-06 Barcelona has revolved around the fourth place in the list of richest football club in the world.
If you are thinking about how Barcelona achieved the top spot, we will let you know about different reasons.
Barcelona has achieved spectacular growth in generating Matchday revenue in the past few years. Real Madrid’s growth was not great, and this was one of the most important reasons for Barcelona to achieve the top spot. Starting from a very low level, Barcelona has overtaken its rivals pretty wisely. Barcelona saw a match day revenue increase of about 63% in the last year. While the Matchday increase for Real Madrid was just 12% in the last year. Barcelona achieved a €14m advantage in the year 2018-19, and thus, it became one of the richest football club in the world.
At the end of the decade 2000, Barcelona achieved the success of winning the Champions League in 2009 as well as in 2011. The team also achieved the spot of semi-finalists in the year 2011. These consecutive wins helped them get the perfect broadcast revenues. They overtook Real Madrid in all these leagues, and thus, Real Madrid was always overthrown to the second spot. Real Madrid also got an early exit in the 2018-19 league, and Barcelona ran towards the finals. This situation helped them turn their fortunes, and thus, they earned huge broadcast revenues. Barcelona saw an increase of 67% revenue in the year 2018-19, on the other hand, Real Madrid got an increase of 63%, which was marginally less as compared to the revenue of Barcelona. Barcelona also got additional €6m revenue for the distribution of La Liga TV rights.
Thus, an increase in the broadcast revenue was another major reason for Barcelona being the most valuable football club in the world.
When it comes to revenues generated through commercials, both teams have got huge profits in their pockets. While Barcelona has witnessed an impressive growth of 215% profits in the past year, Real Madrid has witnessed an increase of 187%. Although there is not much difference in their commercial revenue profits, it has also helped Barcelona get a top spot. The Barcelona football club has signed numerous sponsors and renewable accounts. But, one of the major reasons for their boost in commercial revenue was the signing of Barça Licensing & Merchandising (BLM). The BLM deal helped the team with management and merchandising all commercial licenses in-house. Before this deal, they had to get a third-party help for management and merchandising help. Thus, this deal saved millions of dollars for Barcelona.
Thus, cutting out all kinds of middlemen from the deal has helped Barcelona save lots of money, and thus, they were able to achieve the top spot easily.
In the long-run, the BLM deal will help in better management as well as better revenue for the Barcelona football team. Although they have to make payments to staff and other agent fees to BLM, it is nothing as compared to the profits it is making via Commercial revenue.
The growth of Barcelona won’t stop here, and it is expected to grow at an unprecedented speed, even for the upcoming years. The team has managed everything pretty well, and they are adapting well to the changing market condition. The club is expected to get a revenue of €880m in the year 2019-2020, and as per the current situation, the club will retain its top speed even for the next year.
What reports say?
As per many reports, Barcelona will be the first football club to enter the €1 billion group.
Today, many football clubs pull back to corners, and the top five clubs are generating the maximum revenues.
In addition to all these reasons, Juventus signing Christiano Ronaldo is one of the biggest reasons for the club’s return to the top position. On the other hand, The manchester, as well as Real Madrid, are losing their spots, and they are downsizing. The English club is reportedly losing its status, and Barcelona is gaining its position, and it is also maintaining its position very well.
If we look at various reports, In the top 20 teams in all over the world, eight teams play in England’s Premier League, Four teams are from Italy, three teams are from Spain, Three are German, and two are French teams.
Football is a game of inches and dollars, and the club that is achieving the huge revenue not only gets the motivation to play well, they also have the best infrastructure and training facilities. With millions of fans all over the world, Barcelona Football Club is not only winning the hearts of millions, but it is also winning millions of dollars every year.
The performance, Commercials, Matchday revenue, and all other reasons are responsible for high revenue growth for Barcelona. We hope you are a Barcelona fan and you will be greatly happy with the performance of the team. So, enjoy football games, and tell us about is your favorite team.