Top European clubs to lose over €2bn this season as Covid impact deepens
By Tariq Saleh
The 20 richest clubs in European soccer will suffer losses of over €2 billion ($2.4 billion) in revenue by the end of the 2020-21 season due to the ongoing financial impact of the Covid-19 pandemic, according to the latest Deloitte Football Money League report.
The figure includes lost income in the 2019-20 season resulting from the global health emergency, primarily due to no matchday revenue from March onwards when leagues were suspended and returned largely without spectators.
It also takes into account broadcasting rebates of the ‘big five’ leagues – England, Spain, Germany, Italy and France - and Uefa currently totalling almost €1.2 billion and “the lost potential to continue their previous growth trajectory over the period.”
Deloitte’s annual table of the world’s leading soccer clubs by revenue outlines how income generated by clubs for the 2019-20 season is being spread across two financial years ending in 2020 and 2021, whereas, under normal circumstances, clubs would typically have a financial year-end that aligns with their domestic season (traditionally May or June).
Because of the disruption to the last campaign, and the differing approaches by the various leagues, broadcasters and commercial partners, the majority of Deloitte’s analysis in this year’s Money League focuses on the financial year ending 2020.
With these factors taken into account, the combined revenue of the 20 highest-earning clubs in the world in 2019-20 dropped to €8.2 billion, down 12 per cent from €9.3 billion in the previous season.
Deloitte attributed the €1.1 billion decrease to a €937 million (23 per cent) drop in broadcast revenue, primarily due to the deferral of rights fees into the financial year ending in 2021 and rebates from the disrupted 2019-20 season, as well as a €257 million (17 per cent) fall in matchday income as games were first postponed, then either cancelled or resumed behind closed doors.
However, this was offset by a €105 million (3 per cent) increase in commercial revenue, which reflected the commencement of several major sponsorship deals by clubs last year.
Dan Jones, partner in the sports business group at Deloitte, said: “There is no doubt that this is one of the most testing times the football industry has ever had to endure. The absence of fans, postponement and cancellation of matches, rebates to broadcasters and the need to satisfy commercial partners have all significantly affected the compilation of the 2021 Football Money League. As a result, the comparability of relative performance between clubs in this year’s Money League is more challenging than usual.
“Whilst no football club has been immune to the challenges of Covid-19, and other clubs have suffered more in relative terms, those in the Money League have borne the greatest financial impact in absolute value terms. In this year’s edition, the top 20 clubs generated an average of €409 million per club, a decline of €55 million compared to 2018-19 (€464 million per club).
“The safe return of fans to stadia in significant numbers is one of the highest priorities across global football. Matchday operations are a cornerstone of a club’s business model and help drive other revenue-generating activity. Fans’ absence will be more fully reflected in next year’s Money League. The final size of the financial impact of the pandemic on football will depend, in no small part, on the timing and scale of fans’ return.”
Despite the global pandemic and the different conditions across Europe’s top leagues, the top end of the Money League table has remained largely consistent with Spanish giants Barcelona remaining in first place and rivals Real Madrid still second.
In what proved to be a difficult financial year for Barcelona, the club generated revenue of €715.1 million, down from a record €840.8 million in 2018-19 when they topped the Deloitte table for the first time and became the first club to break the €800 million barrier.
The Catalan club suffered the second-largest revenue fall of any top 20 side. Prior to the pandemic, Barcelona had projected a record €1 billion turnover for the 2019-20 period, which they claimed would have been the “leading income in sports worldwide.”
Real Madrid’s decline proved to be smaller as they generated €714.9 million last season compared to €757.3 million the previous year.
Last season’s LaLiga champions achieved a €28.1 million (8 per cent) increase in commercial revenue following the extension of key partnerships and from taking control of more revenue generating activities in-house.
The €200,000 gap between the top two is the closest in the list’s history, which has a Spanish one-two for the third year running.
Following a treble-winning campaign, comprising the Bundesliga, DFB-Pokal and Uefa Champions League titles, German giants Bayern Munich climbed up one place to third with a turnover of €634.1 million, which represents a first top-three position for the club since 2013-14.
The Bavarian club had the smallest revenue decrease (4 per cent) of the top 10, mainly due to receiving their domestic broadcast rights fees in 2020 thanks to the earlier completion of the Bundesliga season.
Bayern’s rise came at the expense of England’s Manchester United which dropped to fourth with revenue of €580.4 million, a decrease of €131.1 million (19 per cent), the largest year-on-year decline in this year’s rich list.
This was largely due to the team not competing in the Champions League, coupled with the lack of matchday revenue and broadcast rebates and deferrals.
Liverpool were the biggest movers within the top 10, rising two places to fifth and thus entering the top five for the first time since 2001-02 with turnover of €558.6 million.
The club won the league title for the first time in 30 years last season, which followed on from their Champions League win the previous year, and their on-pitch success is leading to strong financial numbers with the benefits associated with their triumph spread across the financial years ending in 2020 and 2021.
The Merseyside outfit are also into the first year of a lucrative new kit deal with major US sportswear brand Nike, which could be worth up to £70 million ($96 million) per year.
English clubs continue to dominate the upper echelon, once again accounting for five of the top 10, with Manchester United and Liverpool joined by Manchester City (sixth) and London clubs Chelsea and Tottenham Hotspur, in eighth and ninth respectively.
Two other Premier League teams – Arsenal and Everton – also make the top 20, but West Ham United drop out. Arsenal remain outside the top 10 after another season outside Champions League.
France’s Paris Saint-Germain (seventh - €540.6 million) and Italy’s Juventus (10th - €397.9 million) complete the Deloitte top 10. After securing their highest position in four years in 2020, PSG have dropped down two places in the latest list.
The Ligue 1 title holders were again joined by fellow French outfit Olympique Lyonnais which remained in the top 20, whilst Inter Milan and Napoli were the only Italian teams to join Juventus, with Serie A’s representation dropping from four after AS Roma fell out.
Bayern remain the only German club in the top 10, but are joined by Borussia Dortmund, Schalke and newcomers Eintracht Frankfurt in the top 20.
Atlético Madrid are the third and final Spanish club in the top 20, staying in 13th place.
A total of 18 of the 20 clubs were also present in last year’s edition – with Russia’s Zenit Saint-Petersburg (15th) and Eintracht (20th) replacing Roma and West Ham.
Zenit’s revenues were boosted by participation in the Champions League and the Russian outfit benefitted from having a calendar year end (to 31 December 2019) which saw their income for the period largely unaffected by the pandemic, whilst the completion of the Bundesliga season within the financial year helped Eintracht enter the Money League top 20 for the first time.
Zenit are the only club on the list from outside of Europe’s big five leagues with Dutch giants Ajax and Portuguese clubs Benfica and Porto falling out of the top 20.
Only two clubs in the list, Zenit and England’s Everton, saw an increase in revenue compared to the previous year.
Everton’s slight growth was driven by the club’s commercial revenue more than doubling to €86.7 million. This was the largest growth (104 per cent) in commercial income across all 20 clubs.
Tim Bridge, director in Deloitte’s sports business group, added: “The Covid-19 pandemic has provided an impetus for clubs to rethink and recalibrate their wider strategic objectives and business models to ensure a strong recovery from the current situation.
“In particular, the focus on both internal and external digital capabilities has accelerated as digital interaction has become the dominant way in which clubs can engage with their employees and fans. The most agile, and innovative clubs will be the best placed to deliver the greater value to their key stakeholders and be rewarded with the fastest and strongest recovery.”
|
Position (last year’s position) |
Club |
2019/20 Revenue (€m) (2018/19 Revenue) |
2019/20 Revenue (£m) (2018/19 Revenue) |
2019/20 Revenue ($m) (2018/19 Revenue) |
|
1 (1) |
FC Barcelona |
715.1 (840.8) |
627.1 (741.1) |
790.5 (959.3) |
|
2 (2) |
Real Madrid |
714.9 (757.3) |
627 (667.5) |
790.3 (864) |
|
3 (4) |
Bayern Munich |
634.1 (660.1) |
556.1 (581.8) |
701 (753.1) |
|
4 (3) |
Manchester United |
580.4 (711.5) |
509 (627.1) |
641.6 (811.7) |
|
5 (7) |
Liverpool |
558.6 (604.7) |
489.9 (533) |
617.5 (689.9) |
|
6 (6) |
Manchester City |
549.2 (610.6) |
481.6 (538.2) |
607 (696.6) |
|
7 (5) |
Paris Saint-Germain |
540.6 (635.9) |
474.1 (560.5) |
597.6 (725.5) |
|
8 (9) |
Chelsea |
469.7 (513.1) |
411.9 (452.2) |
519.2 (585.3) |
|
9 (8) |
Tottenham Hotspur |
445.7 (521.1) |
390.9 (459.3) |
492.7 (594.5) |
|
10 (10) |
Juventus |
397.9 (459.7) |
349 (405.2) |
439.9 (524.5) |
|
11 (11) |
Arsenal |
388 (445.2) |
340.3 (392.4) |
428.9 (507.9) |
|
12 (12) |
Borussia Dortmund |
365.7 (371.7) |
320.7 (327.6) |
404.3 (424.1) |
|
13 (13) |
Atlético de Madrid |
331.8 (367.6) |
291 (324) |
366.8 (419.4) |
|
14 (14) |
Internazionale |
291.5 (364.6) |
255.6 (321.3) |
322.2 (416) |
|
15 (28) |
FC Zenit |
236.5 (180.4) |
207.4 (159) |
261.4 (205.8) |
|
16 (15) |
Schalke 04 |
222.8 (324.8) |
195.4 (286.3) |
246.3 (370.6) |
|
17 (19) |
Everton |
212 (210.5) |
185.9 (185.5) |
234.3 (240.1) |
|
18 (17) |
Olympique Lyonnais |
180.7 (220.9) |
158.5 (194.7) |
199.8 (252) |
|
19 (20) |
Napoli |
176.3 (207.4) |
154.6 (182.8) |
194.9 (236.6) |
|
20 (27) |
Eintracht Frankfurt |
174 (182.2) |
152.6 (160.6) |
192.4 (207.9) |
