Soccerex football finance 100 2018

2 018 ED I T IO N

SOCCERE X FOOTBALL FINANCE 10 0

•

SUMMARY

02

SUMMARY 01

INTRODUCTION

P. 0 3

02

EXECUTIVE SUMMARY

P. 0 4

03

METHODOLOGY

P. 0 6

04

FOOTBALL FINANCE 10 0 R ANKINGS

P. 0 7

05

TOP 3 0

P. 0 9

06

CONCLUSION

P. 4 0

07

AUTHORS & CONTRIBUTORS

P. 4 1

SOCCERE X FOOTBALL FINANCE 10 0

01

•

INTRODUCTION

INTRODUCTION

Soccerex, the global leader for the business of football, is proud to bring to you the SOCCEREX FOOTBALL FINANCE 100 – a new study that looks at the economic power of football clubs from a different perspective, one more in tune with the modern reality in football. The report takes into account assets, net debt and the potential owners have to invest, something that has dramatically changed the competitive landscape built throughout the mid-20th Century and beginning of the 21st.

Over the past 15 years, international funding has reshaped the football industry, notably in recent times with the emergence of significant Chinese investment in the game both domestically and internationally. Set in this context, we felt that current club turnovers are not necessarily the most relevant indicators of financial power. For example, Chelsea’s actual strength, as was demonstrated in the transfer market, would not have been visibly apparent following Roman Abramovich’s takeover in 2003.

Working with independent academics, we wanted to engineer a different approach, supported by innovative methodology, that evaluated the varied elements that constitute a clubs’ financial muscle in a way that reflects contemporary trends. Our methodology focuses on the management of a club’s assets such as players, stadiums and training facilities as well as their liquid assets. Crucially, we have also considered who owns the club, their contribution to date and the potential for future investment. Finally, the club’s net debt is factored in.

We believe that analysing assets, understanding the potential of the owner’s investment and deducting net debt provides a robust approach for evaluating a club in the current environment.

In the methodology chapter this is explained in depth. We cover all the markets across the globe.

Clubs were analysed from all continents, and after applying the methodology it was possible to identify a global ranking of clubs according to their financial strength, looking beyond the traditional “Big 5” European leagues.

Given that football currently commands the attention of billionaires around the world, many club shareholders are extremely rich. The Football Finance 100 identifies that between Europe, China, Mexico and the US, club owners have a total net worth of more than €450 billion.

Among the 30 richest teams in the Soccerex study, few are not owned by billionaires. However, there are various club models in Europe, including those structured around PLCs, limited liability firms and, peculiar to Germany, a model that enables the club to retain control but also sell shares to minority companies or also be 100% owned by a corporation.There is also the Spanish model that allows some clubs to avoid becoming a company. The property is maintained “in house” thanks to club membership schemes. They are an exception in the current landscape, but this model can also involve the participation of heavily capitalised sports tycoons.

03

In China, football club owners’ net worth for the largest nine clubs in the country exceeds €75 billion, while in the US, the richest club owners have a net worth of more than €34 billion.

The economic influence of the club owner and his capitalisation is of course restricted by domestic regulations that limit the use of resources without control. For example, in the US, wage caps and transfer regulations prevent MLS club owners – many of whom are wealthy tycoons - from making large investments that might create an uncompetitive environment.

In Europe, UEFA created the Clubs Licensing System in 2004 and introduced its Financial Fair Play (FFP) regulations in 2011. Today 1,500 European teams fall under this regulation. The European market, following its restructuring and increased professionalisation in the 1990s, did not have rigid expenditure regulations or control of heavy losses. This really began with the introduction of FFP. In the UK, with the Premier League’s aggressive expansion over the past two decades, the presence of wealthy benefactors is an accepted part of the game. Their net worth in British football now exceeds €88 billion. A portion of the success of English football can be attributed to the significant investments made by these billionaires. This has elevated a group of clubs into major footballing economic powers. The UK model has been replicated in other markets as evidenced at Paris Saint-Germain (PSG) and across Chinese football.

European football, at its peak, has experienced broad expansion, but many of these new giants have accumulated heavy losses in the process, with their sustainability depending on their owners’ soft loans or large corporate sponsorship funds linked to the owner’s family or other business interests.

With the application of FFP in 2011, the losses were reduced and more balanced financial structures were developed, but as has been witnessed in the most recent transfer window, clubs – particularly those with wealthy owners - are still able to make game-changing investments.

The Neymar transfer to PSG, a €222 million transaction, shows how strong and capitalized the new powers in football really are. Qatar Sports Investment, the group that controls PSG is part of Qatar Investment Authority which has under is administration €440 billion in assets, enough in terms of capital, to be considered a country in itself!

In comparison, the estimated net worth of Chelsea’s Roman Abramovich, once considered football’s biggest foreign investor is “just” is €9 billion.

This new study attempts to throw some light on the current state of play in the football world by looking at the big picture, analysing the entire business of the clubs, from return on assets to investment strength and levels of indebtedness. We think it provides a thought-provoking picture of the world’s most popular sport. We hope you enjoy it.

SOCCERE X FOOTBALL FINANCE 10 0

02

•

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

This Soccerex study underlines that the global football landscape has changed dramatically over the past two decades, largely due to increased investor interest - including the involvement of billionaires from Europe, Asia Pacific, the Middle East and the Americas - along with rising broadcasting fees.

TRENDS As well as making a select band of clubs extremely wealthy, the overall financial health of football clubs at the top level of the sport has also improved, creating clubs that have become global brands and businesses.

However, as football has become more popular, transfer fees have spiralled, along with player salaries. The spending behaviour of certain clubs in this new environment has been the catalyst for regulatory change, notably in the form of UEFA’s Financial Fair Play, which has restricted outlays and, consequently, club losses.

At the same time, traditional football markets in Europe have been impacted by growing interest in the sport from China, which has been vigorously backed by both the government and large Chinese corporates. This resulted in increased activity in transfer windows involving clubs from the Chinese Super League. European clubs no longer get their own way in their own backyard.

Among themselves, the investments made in clubs like Chelsea, Manchester City and Paris Saint-Germain have created a group of new contenders that have challenged the status quo, not just in their domestic markets, but also across Europe. Evidence of the shift in football power was seen in the recent transfer of Neymar from Barcelona to PSG. At present, the trend of football club acquisition shows little sign of easing up. Indeed investors from China have started eyeing opportunities among second tier clubs in England, while bodies such as City Football Group have expanded their franchise by acquiring new clubs in various locations. Multi-club ownership is a trend that may continue unless regulatory measures make it difficult to achieve.

Meanwhile, the transfer market may now be entering a period of frantic activity and inflated fees following the Neymar transaction. Football, owing to its mass global appeal and financial potential, looks set to remain an attractive proposition and major talking point for investors for some time.

04

INVESTORS AND MEMBERS The Soccerex Football Finance 100 reveals that owners of the top 100 ranked clubs across the world have a combined net worth of just over € 475bn. In China, the net worth of the owners of the nine largest clubs amounts to € 60bn, while in the US, the richest owners’ wealth totals some € 26bn. The owners of the top 30 clubs, as defined by this report, have a net worth of over € 366bn.

Billionaire-owned clubs represent just one type of business model. Clubs like Real Madrid and Barcelona are member-owned clubs, while in Germany the so-called 50+1 system works for clubs such as Bayern Munich. These clubs sit alongside others, such as VfL Wolfsburg and Bayer Leverkusen, that are effectively owned by corporates.

The English Premier League has been the most exposed to foreign ownership and only five of the 20 clubs are 100%-owned by English investors. Given that English clubs have benefitted more than most from the globalisation of the game, this is perhaps no surprise.

A TEAM GAME A number of reports rank football clubs by their revenues, but very few look at factors like debt levels, ownership involvement and potential and the value of assets. Hence, this Soccerex study produces some eye-opening results for market watchers. ››

K clubs dominate the upper part of the rankings, providing four of the top 10 and eight U of the top 30, more than any other nation.

››

he remaining 22 comprises clubs from eight other countries; the US have the next T biggest contingent with five, Germany and Spain provide four clubs each, France and Italy three and China, Russia and the Ukraine one each.

››

anchester City, one of the most famous cases of significant foreign investment M changing a club’s status and potential, top the rankings. Their owner’s high potential investment value is complimented by a strong peformance by the club across each of the other verticals, showing how the owner’s investment has improved the club’s overall business.

››

A rsenal’s 2 nd place in the rankings, ahead of PSG, will surprise many and is certainly a talking point in light of the criticism the club receives from some quarters for its perceived lack of spending in the transfer market. Their ranking is a reflection of the club’s professionalism and a sound business model, which sees them around the top in four of the five key variables, while also having a relatively low level of net debt.

This position of financial strength means Arsenal could invest significantly should the hierarchy at the club choose to change their business strategy.

SOCCERE X FOOTBALL FINANCE 10 0

•

EXECUTIVE SUMMARY

››

L eading Chinese club Guangzhou Evergrande features in the top 10 largely due to the immense wealth of it’s owners, Evergrande and Alibaba. In total, there are nine Chinese clubs in the top 100, more than France, Germany and Italy and the same number as Spain, showing the significant financial potential of the Chinese Super League.

››

helsea, the other big European club often associated with heavy owner investment, C are 9 th, however it should be noted that their ranking is affected by the listing of the owner’s investment as a loan, albeit one without interest or timescale, which gives them the largest net debt of all clubs in the top 100. We have made a weighted adjustment for this in the ranking but if the bulk of their “debt” to Abramovich was recorded as sponsorship or something similar, as it is with other clubs, then Chelsea would move up to 5 th in the rankings.

››

panish powerhouses Real Madrid and Barcelona, who invariably feature at the head S of most reports on football finance, “languish” in 6 th and 13 th respectively, with their rankings impacted by their member ownership structures and the lack of potential owner investment. Although, as we point out, should Real Madrid be capitalised via the stock markets, their overall financial power, would make them worth more than any tycoon’s club.

››

nsurprisingly, the European clubs in the top 20 are the clubs that have dominated U the top leagues in Europe – PSG (France), Bayern Munich (Germany), Real Madrid and Barcelona (Spain) and Juventus (Italy). In most cases, their wealth exceeds their main domestic competitors by some distance, suggesting their reign at the top should be sustained.

››

he United States is the joint second most represented country in the top 30, ahead T of the likes of Germany and Spain, largely due to solid business models, high value of assets (e.g. stadiums) and strong investors.

››

espite the rich football heritage of the region, notable absentees from the top 30 are D South American clubs, where national economic inistability is reflected in their financial position. However Brazil is strongly represented in the lower half of the rankings with 12 clubs featuring between 50 and 100.

Our report demonstrates that heritage counts for little in the new corporatisation of global football. Hence, football institutions with rich tradition such as AC Milan, Benfica and Ajax, all of whom have won countless trophies on both the domestic and international stages, can now considered to have less financial strength than clubs like Leicester City, Zenit St Petersburg and RB Leipzig, as well as a number of US and Chinese clubs. Football, as ever, remains a curious game for many people.

05

SOCCERE X FOOTBALL FINANCE 10 0

03

•

METHODOLOGY

METHODOLOGY

This study has been carried out for Soccerex by specialists in sports financial valuations.

The idea was to bring a new model to evaluate the financial strength of football clubs around the world, using a bespoke methodology, in line with the current reality of the market.

This financial evaluation individually analyses the construction of the assets of each club, its economic power for future investments and its net debts.

The analysis is based on balance sheets and annual reports published by the clubs, as well as other renowned sources of information such as UEFA, Financial Times, Bloomberg, Yahoo Finance, Forbes, Transfermarkt and Hoovers. For this edition, the financial year analysed was 2015-16.

The methodology is constructed on five variables that go towards making up the final calculation of each team: A)

06

Many clubs feature at high positions in the Soccerex Football Finance 100 because, in addition to a capitalised ownership, they have excellent asset management, which impacted deeply the final score. For example, clubs that have extremely valuable players in their squad have a greater capacity to generate revenue from intangible assets. The ability to make a return on their investment in players is a key business tool for many clubs.

The management of fixed assets and cash in bank are fundamental for the most efficient and productive management of an entire business. The actual transformation of assets into revenue depends on many factors (some unpredictable). Many clubs have turned into economic powerhouses precisely because they have been able to increase the return of investment to their shareholders, thanks to asset growth.

The owner’s net worth was considered as an important factor for the evaluation of the teams’ financial strength. In situations where a club does not have one owner or ownership group – e.g. members’ clubs such as Real Madrid and Barcelona - they are attributed a value of “zero” in for that variable.

Also, some tycoons have multiple clubs, in different countries. In these instances, in our methodology the potential investment is divided by the different clubs owned by the investor.

The values ​​were stipulated according to the degree of effective investment made in each club.

Playing Assets

B)

Fixed Assets (i.e. team’s stadiums, training centres and other properties)

C)

Cash in the bank

D)

Owner Potential Investment*

E)

Net Debt

Net debt is the final variable and its deduction is important to finish the valuation, according to the actual financial situation of each club. In cases where no reliable information could be found to provide a figure for a clubs net debt or their owner’s estimated net worth, we have listed it as NA and for the purposes of the calculation zeroed the value.

Clubs that do not have moguls as owners have had their calculations restricted to valuing their assets and deducting debts. Some of them showed strength in their asset management and they are featured in the survey.

Our aim with this report is to evaluate and rank the financial potential of each club. So we developed a methodology we have called the Football Finance Index (FFI) that looks at the performance of clubs in each of the five key variables identified, weighted against that variable’s percentage of the accumulative total, and its relative liquidity, thereby giving an FFI score for each variable that can be used to calculate the overall FFI Score for each club as follows: SOCCEREX FFI SCORE FOR A CLUB

*Owner Potential Investment is a Soccerex index created to define the potential to be invested in a football club by the owner or ownership group. For the purposes of the report, a starting percentage was used based on research and evaluation

A FFI Score + B FFI Score + C FFI Score** + D FFI Score** – E FFI Score

of the owner investment to date, with further weighting applied based on analysis of macro & microeconomic factors such as ownership structure, national league restrictions and other regulations such as financial fair play.

**In the cases of Cash in Bank and Owner Potential Investment, greater weighting was applied to their FFI score due their greater liquidity and therefore greater impact on a club’s immediate financial strength.

SOCCERE X FOOTBALL FINANCE 10 0

•

FOOTBALL FINANCE 10 0 R ANKINGS

07

(€ MILLIONS)

04

FOOTBALL FINANCE 10 0 (€ MILLIONS)

#

CLUB

COUNTRY

FFI SCORE

PL AY ER S VALUE

FIXED ASSETS

CASH IN BANK

OWNER POTENTIAL INVESTMENT

CLUB

COUNTRY

FFI SCORE

PL AY ER S VALUE

FIXED ASSETS

CASH IN BANK

OWNER POTENTIAL INVESTMENT

NET DEBT

26

NAPOLI

I TA

0.814

380

9

3

19

66

27

EVERTON

UK

0.775

296

12

0

70

60

USA

0.739

15

170

0

12 3

0

#

NET DEBT

01

MANCHESTER CITY

UK

4.883

637

534

75

788

15

28

NEW ENGLAND REVOLUTION

02

ARSENAL

UK

4.559

592

76 6

300

287

8

29

VALENCIA

S PA

0.690

162

264

5

63

290

03

PSG

FRA

4 .12 8

485

83

107

1, 0 5 0

18 6

30

INTER MILAN

I TA

0.665

319

12

4

14 0

306

04

GUANGZHOU EVERGRANDE

CHI

3.423

46

12 0

(NA)

1,12 0

(NA)

31

HEBEI CHINA FORTUNE

CHI

0.649

27

25

0

196

0

05

TOT TENHAM HOTSPUR

UK

2.591

463

386

231

16 8

240

32

SOUTHAMPTON

UK

0.627

239

4

28

53

84

06

REAL MADRID

S PA

2.579

771

323

2 11

0

263 33

STOKE CIT Y

UK

0 . 610

157

1

17

12 3

79

07

MANCHESTER UNITED

UK

2.314

524

347

307

13 3

536 34

AC MIL AN

I TA

0.581

364

20

2

39

250

08

JUVENTUS

I TA

2.260

470

161

33

403

209

09

CHELSEA

UK

2.093

624

201

0

315

400

35

WEST HAM UNITED

UK

0.577

196

63

37

16

90

10

B AY ER N M U N I C H

GER

2.086

603

225

101

0

0

36

NEWCASTLE UNITED

UK

0.563

13 4

88

2

91

12 0

11

ZENIT S T. P E T E R S B U R G

RUS

1.75 6

13 0

12 0

(NA)

508

12 0

37

ORLANDO CITY

USA

0.563

23

217

0

14

0

12

RB LEIPZIG

GER

1. 6 8 9

182

11 0

0

384

0

38

JIANGSU SUNING

CHI

0.562

42

40

0

14 0

0

13

BARCELONA

S PA

1. 6 26

780

14 3

27

0

315

39

AT H L E T I C B I L B AO

S PA

0 . 5 61

172

26

47

0

0

14

LA GALAXY

USA

1. 593

26

239

0

371

0

AT L E T I C O MADRID

40

AMÉRICA

MEX

0.558

48

12 0

(NA)

70

0

15

S PA

1. 3 91

534

141

20

149

370 41

DYNAMO KIE V

UKR

0.547

87

10

(NA)

12 3

0

16

LIVERPOOL

UK

1. 370

459

171

11

75

16 3

BORUSSIA DORTMUND

42

TORONTO FC

USA

0.545

31

214

0

4

0

17

GER

1. 3 31

409

18 8

39

0

55

O LY M P I Q U E LYO N N A I S

43

0.532

31

16 0

0

42

0

FRA

1. 210

15 0

421

37

35

159

DEPORTIVO GUADAL AJARA

MEX

18 19

MONACO

FRA

1.14 0

265

6

18

263

14 8

44

HOUSTON DYNAMO

USA

0. 518

12

203

0

18

0

20

LEICESTER CIT Y

UK

1.119

210

72

41

151

14

45

PORTLAND TIMBERS

USA

0. 516

26

18 4

0

21

0

21

B AY ER LEVERKUSEN

GER

1.0 0 2

229

90

0

112

0

46

AJA X

NED

0. 515

115

33

70

0

0

22

S H A K H TA R DONETSK

UKR

0 .9 9 3

108

18 0

(NA)

13 3

(NA)

47

MONTERREY

MEX

0.501

66

10 0

(NA)

51

0

23

NEW YORK RED BULLS

USA

0 .95 5

19

159

0

207

0

48

SCHALKE 04

GER

0.486

185

12 5

4

0

13 7

24

S E AT T L E SOUNDERS

USA

0.860

19

266

0

87

0

49

S PA R TA K MOSCOW

RUS

0.478

95

0

(NA)

12 6

50

25

NEW YORK CIT Y

USA

0.844

18

237

0

105

0

50

SPORTING LISBON

POR

0.469

196

16 5

3

0

222

SOCCERE X FOOTBALL FINANCE 10 0

•

FOOTBALL FINANCE 10 0 R ANKINGS

08

(€ MILLIONS)

(€ MILLIONS)

#

CLUB

COUNTRY

FFI SCORE

PL AY ER S VALUE

FIXED ASSETS

CASH IN BANK

OWNER POTENTIAL INVESTMENT

NET DEBT

51

ROMA

I TA

0.464

305

8

2

30

208

52

PORTO

POR

0.446

206

14 0

13

0

234

53

SEVILLA

S PA

0.446

19 9

10

31

0

65

54

SPORTING KANSAS CITY

USA

0.426

14

181

0

0

0

55

C R Y S TA L PA L AC E

UK

0 . 411

167

12

11

25

52

56

SHANGHAI SIPG

CHI

0.400

58

50

(NA)

60

(NA)

57

SAN JOSE EARTHQUAKES

USA

0.393

16

16 4

0

0

0

58

COLORADO RAPIDS

USA

59

CHICAGO FIRE

USA

0.387

21

15 6

0

0

0

60

SWANSE A CIT Y

UK

0.370

14 8

26

27

0

57

0.389

15

95

0

54

CLUB

COUNTRY

FFI SCORE

PL AY ER S VALUE

FIXED ASSETS

CASH IN BANK

OWNER POTENTIAL INVESTMENT

NET DEBT

76

BOCA JUNIORS

ARG

0 .19 1

69

30

2

0

21

77

SHANDONG L U N E N G TA I S H A N

CHI

0 .19 1

27

40

(NA)

16

(NA)

78

SHANGHAI GREENLAND SHENHUA

CHI

0 .19 1

26

30

(NA)

25

(NA)

79

R I V E R P L AT E

ARG

0 .18 9

78

32

0

0

35

80

FEYENOORD

NED

0 .18 5

87

2

9

0

23

81

PAC H U C A

MEX

0 .17 7

41

40

(NA)

0

0

82

CHONGQING DANGDAI LIFAN

CHI

0 .16 5

8

20

(NA)

39

(NA)

83

TIANJIN QUANJIAN

CHI

0 .151

44

20

(NA)

4

(NA)

84

S ÃO PAU LO

BRA

0 .151

64

78

2

0

112

85

CRUZEIRO

BRA

0 .12 6

65

63

1

0

106

86

TOLUCA

MEX

0 .12 5

43

14

(NA)

0

0

87

PA L M EI R A S

BRA

0 .11 8

65

58

7

0

115

88

GRANADA

S PA

0 .117

18

7

3

35

28

89

SUNDERLAND

UK

0 .111

78

20

36

39

208

90

BRIGHTON

UK

0.099

59

2

3

50

12 2

91

ASTON VILL A

UK

0.092

107

13

0

39

187

92

FLUMINENSE

BRA

0.089

36

102

1

0

14 6

93

INDEPENDIENTE

ARG

0.079

38

15

0

0

25

94

FLAMENGO

BRA

0.062

68

46

4

0

13 4

95

GRÊMIO

BRA

0 . 0 61

57

49

0

0

116

96

AT L É T I C O - M G

BRA

0.054

67

59

1

0

151

#

0

61

AT L É T I C O - P R

BRA

0 . 3 61

33

182

2

0

77

62

LAZIO

I TA

0.360

201

41

4

3

12 7

63

INTERNACIONAL

BRA

0.343

43

175

0

0

91

64

BENFICA

POR

0.333

175

169

30

0

339

65

BOURNEMOUTH

UK

0.331

12 6

12

45

4

71

66

GIRONA

S PA

0.325

18

1

2

105

7

67

TIJUANA

MEX

0.322

44

29

(NA)

60

0

68

PUMAS

MEX

0.299

37

10 0

0

0

0

69

O LY M P I Q U E MARSEILLE

FRA

0.295

13 6

21

14

35

12 3

70

TIGRES

MEX

0.293

69

30

(NA)

28

0

71

CORINTHIANS

BRA

0.286

45

169

0

0

124

72

BEIJING GUOAN

CHI

0.224

23

70

(NA)

8

(NA)

97

B E S I K TA S

TUR

0.015

10 0

2

2

0

14 6

73

BURNLEY

UK

0.221

82

19

8

3

20

98

SANTOS

BRA

- 0.015

49

14

0

0

104

74

MAL AGA

S PA

0.209

69

5

2

35

35

99

FENERBAHÇE

TUR

-0.060

85

4

2

0

176

75

CRUZ AZUL

MEX

0.201

46

35

(NA)

9

0

CSK A MOSCOW

RUS

-0.065

78

0

0

35

224

10 0

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

26.7%

09

UNITED KINGDOM

05

TOP 30

MANCHESTER CIT Y ARSENAL

The Soccerex Football Finance 100 demonstrates the financial power of football clubs across different continents. The top 30 in the report features clubs from Europe, China and North America. Despite the fervor created by the game in countries like Brazil and Argentina, there is no presence from Latin America.

TOP 30 CLUBS BY NUMBERS

TOT TENHAM HOTSPUR MANCHESTER UNITED CHELSEA LIVERPOOL LEICESTER CIT Y EVERTON

16 .7% USA LA GALAXY S E AT T L E S O U N D E R S NE W YORK RED BULL S NEW YORK CIT Y NEW ENGLAND REVOLUTION

30

COMBINED PL AY ER S VA L U E

€ 9. 7 B N

10%

COMBINED FIXED ASSETS AND CASH IN BANK

FRANCE

COMBINED OWNERS NET WORTH

PSG O LY M P I Q U E LYO N N A I S MONACO

€ 7. 7 B N

€366BN NET DEBT

3.3%

€4.3BN

CHINA TOP 30 CLUBS BY COUNTRY

GUANGZHOU EVERGRANDE

COUNTRY

CLUBS

%

UK

8

26.7%

3.3%

USA

5

16.7%

RUSSIA

GER

4

13 . 3 %

S PA

4

13 . 3 %

FRA

3

10.0%

I TA

3

10.0%

Z E N I T S T. P E T E R S B U R G

10%

CHI

1

3.3%

3.3%

RUS

1

3.3%

UKRAINE

UKR

1

3.3%

S H A K H TA R D O N E T S K

I TA LY JUVENTUS NAPOLI INTER MILAN

13 . 3 %

13 . 3 %

S PA I N

GERMANY

REAL MADRID BARCELONA AT L E T I C O M A D R I D VALENCIA

B AY ER N M U N I C H RB LEIPZIG BORUSSIA DORTMUND B AY ER L E V ER K U S EN

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€637M

# 01

FFI SCORE

4.883

FIXED ASSETS

€534M

MANCHESTER CIT Y FC

CASH IN THE BANK

€ 75M

NAME

NET DEBT

MANCHESTER CIT Y LIMITED

€15 M

CITY

MANCHESTER, UNITED KINGDOM FOUNDED

AV E R AG E AT T E N DA N C E

4 7, 0 0 0

16 APRIL 18 94 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

SINCE 2008

€30BN†

Manchester City top the inaugural Soccerex Football Finance 100 rankings thanks largely to the heavy investment made by its owner Mansour bin Zayed Al Nahyan, from Abu Dhabi. The club possesses one of the most valuable squads in world football, and has invested heavily in fixed assets - the Etihad Campus, which includes the club’s stadium and training ground. In addition, the club has a multibillionaire owner who has invested more than € 650 million since buying the club. In addition to the owner’s investment, the Premier League’s recent expansion, fuelled by massive broadcast deals, has also contributed to Manchester City’s financial strength.

OWNERSHIP (10 0% - CIT Y FOOTBALL GROUP)

87%

ABU DHABI UNITED GROUP

13 %

C H I N A M E D I A C A P I TA L

† NET WORTH OF ABU DHABI UNITED GROUP OWNER SHEIKH MANSOUR BIN ZAYED AL NAHYAN.

10

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€592M

# 02

FFI SCORE

4.559

FIXED ASSETS

€ 76 6 M

ARSENAL FC CASH IN THE BANK

€300M NAME

ARSENAL HOLDINGS PLC NET DEBT CITY

LONDON, UNITED KINGDOM FOUNDED

1 DECEMBER 1886

€8M AV E R AG E AT T E N DA N C E

60,079

AQ U I S I T I O N DAT E

SINCE 2007 E S T. O W N E R / S N E T W O R T H

€ 8 .1 B N † Arsenal is in second place with a strong performance across all the verticals evaluated. Since moving from Highbury to their current home at the Emirates Stadium, the London-based club has seen a giant leap in its assets, transforming the former stadium into a real estate complex. In addition, it has high levels of cash resources, low debt and a very valuable team. To complete their valuation, the club’s two owners have a huge net worth, providing considerable potential to invest if necessary.

OWNERSHIP

67%

S TA N K R O E N K E

3% MINORIT Y SHAREHOLDERS

30%

ALISHER USMANOV

† FIGURE EQUATES TO 67% OF KROENKE’S ESTIMATED NET WORTH PLUS 30% OF ALISHER USMANOV ESTIMATED NET WORTH, IN ACCORDANCE WITH THE PERCENTAGE OF THE CLUB THEY OWN.

11

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€485M

# 03

FFI SCORE

4 .12 8

FIXED ASSETS

€83M

PA R I S S A I N TGERMAIN FC

CASH IN THE BANK

€107M

NAME

NET DEBT

PA R I S S A I N T- G E R M A I N

€18 6M

FOOTBALL CLUB CITY

PA R I S , F R A N C E

AV E R AG E AT T E N DA N C E

43,238

FOUNDED

12 AU GUS T 19 70 E S T. O W N E R / S N E T W O R T H AQ U I S I T I O N DAT E

S I N C E 2 0 11

Paris Saint-Germain (PSG) is the most recent member of the group of teams bought by multibillionaires. In 2011, the club was purchased by Qatar Sports Investments (QSI), a fund linked to the Emir, with the group’s chairman, Nasser Al-Klelaifi assuming control of the club.

The Parisian team has become a power in French football and on the European scene. The assets include a valuable team and, most notably, the wealth of its owner. PSG can be considered as highly dependent on the fortune of its owner. Only Chinese teams depend as much on their owners.

€30BN OWNERSHIP

10 0%

QSI

12

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€46M

# 04

FFI SCORE

3.423

FIXED ASSETS

€12 0 M

GUANGZHOU EVERGRANDE TAO B AO F C

CASH IN THE BANK

(NA) NET DEBT

NAME

(NA)

GUANGZHOU EVERGRANDE TAO B AO F O OT B A L L C L U B CITY

AV E R AG E AT T E N DA N C E

4 4,70 0

GUANGZHOU, CHINA FOUNDED

E S T. O W N E R / S N E T W O R T H

JUNE 195 4

€32BN†

AQ U I S I T I O N DAT E

SINCE 2 010 A ND 2 014

OWNERSHIP Guangzhou Evergrande is the first Asian and highest-placed non-European club in our ranking. The most valuable Chinese club has a high asset value, with its team being the second most valuable in the Chinese Super league – Guangzhou’s squad is the 68th most valuable in the world. Their position in the top five is down to the club’s owners very high investment potential, which is the most telling strength in this study. Guangzhou have won the AFC Champions League twice and has been one of the fastest-growing clubs since the Chinese Super League’s expansion got underway. Prior to Evergrande Group’s acquisition, the club was a medium-sized force in the country.

5 6 .1%

EVERGRANDE GROUP ( X U J I AY I N )

6.09% MINORIT Y SHAREHOLDERS

3 7. 8 1 %

ALIBABA GROUP (JACK MA)

† FIGURE EQUATES TO 56.1% OF EVERGRANDE GROUP CHAIRMAN XU JIAYING’S ESTIMATED NET WORTH PLUS 37.81% OF ALIBABA GROUP EXECUTIVE CHAIRMAN JACK MA’S ESTIMATED NET WORTH.

13

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€463M

# 05

FFI SCORE

2.591

FIXED ASSETS

€386M

TOTTENHAM HOTSPUR FC

CASH IN THE BANK

€ 2 31M

NAME

NET DEBT

TOT TENHAM HOTSPUR LIMITED

€24 0M

CITY

LONDON, UNITED KINGDOM FOUNDED

AV E R AG E AT T E N DA N C E

31, 0 0 0 *

5 SEPTEMBER 18 82 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

SINCE 2001

€4.8BN†

Tottenham Hotspur is another London club very well positioned in our ranking.

This outstanding placing is due to prudent investment in its fixed assets and healthy levels of cash in bank.

Another important element has been increased investment in wages and transfer fees, which has been driving Spurs forward over the last two years in the Premier League, in addition to the very high investment potential of its owners. The club is 100% controlled by English investors, something increasingly rare in the Premier League.

The trend for 2018 is set to continue with the completion of the works at the new White Hart Lane stadium, which will have a capacity of 61,000.

OWNERSHIP

85.55%

ENIC GROUP (JOE LEWIS AND DANIEL LEV Y )

14.45% MINORIT Y SH A REHOL DERS

* (70,000 AT WEMBLEY) † ESTIMATED NET WORTH OF ENIC GROUP OWNERS JOE LEWIS AND DANIEL LEV Y.

14

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€ 7 71M

# 06

FFI SCORE

2.579

FIXED ASSETS

€323M

REAL MADRID CF

CASH IN THE BANK

€ 2 11 M

NAME

NET DEBT

REAL MADRID CLUB DE FÚTBOL

€263M

CITY

M A D R I D, S PA I N FOUNDED

AV E R AG E AT T E N DA N C E

73,0 0 0

6 M A RCH 19 0 2 E S T. O W N E R / S N E T W O R T H

Real Madrid is the first club in the ranking not owned by a tycoon. The club’s legal structure does not permit this. The ownership belongs to club members, many of whom are also season tickets holders. Since the so-called “Galactico” era in the early 2000’s, Real has invested heavily in players and hence its current squad is extremely valuable. Its financial strength is also built on high asset values due to the stadium and training ground and cash in hand, all of which contributed to the club’s ranking. In this study, if Real was capitalised, for example via the stock exchange, it would undoubtedly be worth more than any club owned by a magnate.

0 OWNERSHIP

10 0%

CLUB’S MEMBERS (NON-PROFIT O R G A N I Z AT I O N )

15

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€524M

# 07

FFI SCORE

2 . 314

FIXED ASSETS

€3 47M

MANCHESTER UNITED FC

CASH IN THE BANK

€3 07M

NAME

NET DEBT

MANCHESTER UNITED PLC

€536M

CITY

MANCHESTER, UNITED KINGDOM FOUNDED

AV E R AG E AT T E N DA N C E

75, 20 0

1 JANUARY 18 6 8 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

2003-2005

€3.8BN†

Manchester United represents the epitome of global football commercialisation. Historically, United had been a pioneer in monetizing commercial strengths, always maintaining the financial balance of its operation while running low levels of debt. However with Malcom Glazer’s total acquisition of the club in 2015, debts multiplied and affected its value – and ultimately, its position in this ranking. Its current strength is in its valuable team and the high value of fixed and cash assets as well as the enormous wealth potential of its owners. George Soros’s investment as a minority shareholder is another relevant capitalisation factor.

OWNERSHIP

92.25%

JOEL & AVR AM GL A ZER

7. 8 5 %

GEORGE SOROS

† ESTIMATED NET WORTH OF THE GLAZER FAMILY. GEORGE SOROS’ STAKE IN THE CLUB WAS DEEMED TOO SMALL TO BE INCLUDED.

16

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€470 M

# 08

FFI SCORE

2.260

FIXED ASSETS

€161M

JUVENTUS FC CASH IN THE BANK

€33M NAME

J U V E N T U S F O OT B A L L C L U B S PA NET DEBT CITY

T U R I N , I TA LY FOUNDED

1 NOVEMBER 1897

€209M AV E R AG E AT T E N DA N C E

3 9, 5 0 0

AQ U I S I T I O N DAT E

BEGINS 19 23 E S T. O W N E R / S N E T W O R T H

€ 11 . 5 B N † Juventus is another prominent European football club that symbolized the pace of market development in the early 2000s. A pioneer in raising capital via the financial markets, the club was the first to offer shares on the stock exchange. Juventus is run by one of the richest families in Italy, but suffered greatly from the punishments received for management misconduct in 2006.

Current chairman Andrea Agnelli has been very assertive and focused in his decisions. In addition to a competitive team, Juve also owns its own stadium, which has helped strengthen its assets and create market differentiation in Italy. Although the club has very wealthy owners, its high level of debt has impacted its position in this ranking.

OWNERSHIP

64%

AG N E L L I FA M I LY ( F I AT G R O U P )

36% MINORIT Y SHAREHOLDERS

† ESTIMATED NET WORTH OF THE AGNELLI FAMILY.

17

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€624M

# 09

FFI SCORE

2.093

FIXED ASSETS

€ 2 01M

CHELSEA FC CASH IN THE BANK

€0 NAME

CHELSEA FOOTBALL CLUB LIMITED NET DEBT CITY

LONDON, UNITED KINGDOM FOUNDED

10 M A RCH 19 0 5

€800M AV E R AG E AT T E N DA N C E

41, 5 0 0

AQ U I S I T I O N DAT E

JUNE 2003 E S T. O W N E R / S N E T W O R T H

€9BN Bought in 2003 by Russian magnate Roman Abramovich, Chelsea FC is arguably the club that kick-started the wave of prominent acquisitions by overseas billionaires in English football.

Within less than 10 years, the Londonbased club, which until the mid-1990s regularly featured in the middle of the table in the English League, suddenly became a powerhouse and went on to win a number of major trophies, both nationally and internationally. More than € 1.2 billion have been invested in the club since its acquisition by Abramovich.

Chelsea have won titles and invested in their squad, but have also accumulated heavy losses. The club also has a very high amount of net debt even though the bulk of it is owed without conditions to Abramovich. The playing squad is the 4th most valuable football team in the world.

Another factor that is very relevant is the club’s fixed assets, and especially the wealth of its owner who has never spared efforts to inject resources into Chelsea.

OWNERSHIP

10 0%

ROMAN ABRAMOVICH ( M I L L H O U S E C A P I TA L )

18

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€603M

# 10

FFI SCORE

2.086

FIXED ASSETS

€220M

F C B AY E R N MUNICH

CASH IN THE BANK

€101M

NAME

NET DEBT

F C B AY ER N AG

€0

CITY

MUNICH, GERMANY FOUNDED

AV E R AG E AT T E N DA N C E

75,0 0 0

FEBRUA RY 19 0 0 E S T. O W N E R / S N E T W O R T H

Bayern Munich is another giant of world football who can compete with teams controlled by tycoons and deliver excellent results, both domestically and internationally. The club has an extremely valuable team and high asset values. The lack of net debt is also a significant competitive differentiator.

The club has large German companies as minority shareholders, a characteristic of German corporate behavior.

0 OWNERSHIP

75%

CLUB’S MEMBERS

8.33%

ADIDAS 8.33%

AUDI 8.33%

ALLIANZ

19

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€13 0 M

# 11

FFI SCORE

1.75 6

FIXED ASSETS

€12 0 M

F C Z E N I T S T. PETERSBURG

CASH IN THE BANK

(NA)

NAME

NET DEBT

Z E N I T S T. P E T E R S B U R G

€12 0 M

CITY

S T. P E T E R S B U R G , R U S S I A FOUNDED

AV E R AG E AT T E N DA N C E

16 , 7 71*

3 0 M AY 19 2 5 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

DECEMBER 2005

€14 5 B N †

Zenit St. Petersburg is one of the oldest clubs in Russia and represents the city of St. Petersburg, formerly Leningrad.

The club has experienced good and bad times, being Soviet champion and later Russian, but has also suffered relegated to the second division. It is currently the best-performing Russian team and since 2005 has been owned by oil and gas giant Gazprom. The club reached its peak in 2007-08 when they won the UEFA Cup, the current Europa League. With Russia’s winning the right to host the 2018 FIFA World Cup, the club built a new stadium with a construction cost of almost € 1 billion. This heavy investment will surely take Zenit to a new level, as both their revenues and assets will grow.

OWNERSHIP

10 0%

GAZPROM

* KRESTOVSKY STADIUM (21,500 CAPACITY) † WHEN LOOKING AT THE OWNER POTENTIAL INVESTMENT VALUE, THE PERCENTAGE OF OWNER’S WORTH WAS DECREASED TO ACCOUNT FOR GAZPROM BEING A CORPORATION RATHER THAN AN INDIVIDUAL OR GROUP OF INDIVIDUALS.

20

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€182M

# 12

FFI SCORE

1. 6 8 9

FIXED ASSETS

€ 11 0 M

RB LEIPZIG CASH IN THE BANK

(NA) NAME

RASENBALLSPORT LEIPZIG NET DEBT CITY

LEIPZIG, GERMANY FOUNDED

19 M AY 2 0 0 9

(NA) AV E R AG E AT T E N DA N C E

41, 4 0 0

AQ U I S I T I O N DAT E

19 M AY 2 0 0 9 E S T. O W N E R / S N E T W O R T H

€16 .9 B N † Germany’s RB Leipzig is one of the clubs owned by Dietrich Mateschitz, founder of the Red Bull brand, which invests diversely across different sports and activities such as adventure sports and F1. The rise of this club - which started in the fifth division and last season reached second place in the Bundesliga - is a genuine, if controversial, success story. Leipzig is currently the most valuable club among the company´s football holdings and an emerging force on the European football scene.

The playing squad is its main strength, currently the 29 th most valuable in the world. The potential investment of its owner is the second most significant factor in the club’s final value.

OWNERSHIP

10 0%

RED BULL ( D I E T R I C H M AT E S C H I T Z )

† ESTIMATED NET WORTH OF RED BULL OWNER DIETRICH MATESCHITZ

21

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€78 0 M

# 13

FFI SCORE

1. 6 2 6

FIXED ASSETS

€14 3 M

FC BARCELONA CASH IN THE BANK

€27M NAME

FUTBOL CLUB BARCELONA NET DEBT CITY

B A R C E LO N A , S PA I N FOUNDED

2 9 NOVEMBER 189 9

Barcelona is another club owned by its members – many of them being season ticket holders. After undergoing a restructuring of its management in 2003, the club has enjoyed the best sporting achievements of its history.

The Catalan club has one of the most valuable football squads, its greatest strength. The inferior value of its assets, compared to its rivals, and the value of its debt prevented a better ranking.

€ 315 M AV E R AG E AT T E N DA N C E

7 7, 4 0 0 E S T. O W N E R / S N E T W O R T H

0 OWNERSHIP

10 0%

CLUB’S MEMBERS (NON-PROFIT O R G A N I Z AT I O N )

22

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€26M

# 14

FFI SCORE

1. 5 9 3

FIXED ASSETS

€239M

LA GALAXY CASH IN THE BANK

(NA) NAME

LOS ANGELES GAL A X Y NET DEBT CITY

LOS ANGELES, USA FOUNDED

19 94

(NA) AV E R AG E AT T E N DA N C E

22,70 0

AQ U I S I T I O N DAT E

19 94 E S T. O W N E R / S N E T W O R T H

€10.6BN† LA Galaxy’s history is very much aligned with Major League Soccer’s own trajectory. Owned by Anschutz Entertainment Group AEG), its founder Philip Anschutz was the biggest investor and advocate for the soccer league to develop. The club was the first to make a profit in the league, in 2003, and has the highest revenue, especially since they started playing at the Stub Hub Center (formerly known as Home Depot Center). With the move to the new stadium the club has increased its average audience and doubled its revenues with sponsors and other streams on match days. The squad is only 88 th in market value in the world. Its greatest strength is clearly the wealth of its owner and assets.

OWNERSHIP

10 0%

AEG (PHILIP ANSCHUTZ)

† ESTIMATED NET WORTH OF AEG OWNER PHILIP ANSCHUTZ.

23

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€534M

# 15

FFI SCORE

1. 3 9 1

FIXED ASSETS

€141M

AT L E T I C O MADRID

CASH IN THE BANK

€20M

NAME

NET DEBT

C L U B AT L É T I C O D E M A D R I D S A D

€370M

CITY

M A D R I D, S PA I N FOUNDED

AV E R AG E AT T E N DA N C E

4 4,70 0

26 A PRIL 19 0 3 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

SINCE 19 9 2 A ND 2 015

€4.3BN†

Atlético de Madrid, a long-time leader in Spanish football, has grown significantly in recent years, winning titles and reaching two UEFA Champions League finals. In 2015, the club attracted one of the richest businessmen in China as an investor. Atlético recently moved to a new stadium, the Wanda Metropolitano, which should help the future development of its businesses.

The greatest strength is in its playing squad, currently the world’s 7th most valuable, and the sizeable potential involvement of its new investor. The weak point is a very high level of debt.

If Atlético had less debt, it would be much better ranked than 15th.

OWNERSHIP

52%

MIGUEL ÁNGEL GIL MARIN

20%

ENRIQUE CEREZO

20%

DALIAN WANDA GROUP ( WANG JIANLIN)

8% MINORIT Y SHAREHOLDERS

† FIGURE EQUATES TO 20% OF WANG JIANLIN’S ESTIMATED NET WORTH.

24

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€459M

# 16

FFI SCORE

1. 3 70

FIXED ASSETS

€171M

LIVERPOOL FC CASH IN THE BANK

€ 11 M NAME

THE LIVERPOOL FOOTBALL CLUB AND AT H L E T I C G R O U N D S L I M I T E D CITY

NET DEBT

€16 3 M

LIVERPOOL, UNITED KINGDOM FOUNDED

15 M A RCH 18 9 2

AV E R AG E AT T E N DA N C E

53,000

AQ U I S I T I O N DAT E

OCTOBER 2010

E S T. O W N E R / S N E T W O R T H

€ 2 .1 B N † Liverpool has a rich history that includes five European Cup / Champions League triumphs, the most recent coming in 2005. However, in recent years, the club has struggled to keep pace with its rivals in England and Europe. The sale to its current owner in 2010 brought fresh hope, but Fenway Sports Group is understood to have less “investment potential” than some of its rivals. Currently, LFC has the 12 th most valuable squad in world football and depends a lot on this value for its final score. The rest of their assets and net debt place the club in 16th place in the Soccerex ranking. The sole owner of the Liverpool Football Club and Athletic Grounds Limited is Fenway Sports Group (legally organised as NESV I, LLC), which is managed by John Henry and Tom Werner.

OWNERSHIP

10 0%

F EN WAY S P O R T S G R O U P (JOHN W. HENRY )

† ESTIMATED NET WORTH OF FENWAY SPORTS GROUP OWNER, JOHN W. HENRY.

25

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€409M

# 17

FFI SCORE

1. 3 31

FIXED ASSETS

€18 8 M

BORUSSIA DORTMUND

CASH IN THE BANK

€39M

NAME

NET DEBT

BORUSSIA DORTMUND

€55M

GMBH & CO. KGA A CITY

DORTMUND, GERMANY

AV E R AG E AT T E N DA N C E

7 9, 6 5 0

FOUNDED

19 DECEMBER 19 0 9 E S T. O W N E R / S N E T W O R T H

0 Borussia Dortmund is a traditional German club and was a pioneer in Germany in raising capital via the stock market in 2000. The company experienced a deep restructuring in its management which was decisive for its current success. In 2005, Dortmund suffered a heavy financial crisis and its debts exceeded € 180 million. The club currently has a valuable squad, 13 th by market value, good asset values and carefully managed levels of net debt.

The club is also the best supported in world football in terms of average home attendances.

OWNERSHIP 14.78 %

EVONIK INDUSTRIES AG

9. 0 1% BERND GESKE 5.53% BORUSSIA DORTMUND 5.43% SIGNAL IDUNA 5% PUMA

60.25%

F R E E F LOAT

26

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€15 0 M

# 18

FFI SCORE

1. 2 10

FIXED ASSETS

€ 421M

O LY M P I Q U E LY O N N A I S

CASH IN THE BANK

€37M

NAME

NET DEBT

O LY M P I Q U E LYO N N A I S ( O L G R O U P E )

€159 M

CITY

LYO N , F R A N C E FOUNDED

AV E R AG E AT T E N DA N C E

40,300

3 AU GUS T 195 0 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

SINCE 19 9 9

€1B N †

After its complete restructuring in 1999, Olympique Lyonnais became the leading power in French football.

The club raised capital on the stock exchange and became deeply capitalised. The global financial crisis in 2008-09 affected its business like most clubs operating on the stock market. OL Groupe currently has a broader investor base, including Jérôme Seydoux and Chinese fund IDG capital partners. In January 2016, the club inaugurated its new stadium, resulting in a substantial increase in assets. The Lyon squad is ranked 35 th by value in the world.

OWNERSHIP 2 7. 8 8 %

JEAN-MICHEL AUL AS

2 3 . 81%

JÉRÔME SEYDOUX

20%

I D G C A P I TA L PA R T N E R S 0.07% BOARD OF MEMBERS

28.24%

F R E E F LOAT

† FIGURE BASED TO 23.81% OF SEYDOUX FAMILY ESTIMATED NET WORTH IN ACCORDANCE WITH THE PERCENTAGE OF THE CLUB THEY OWN.

27

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€265M

# 19

FFI SCORE

1 .1 4 0

FIXED ASSETS

€6M

A S MONACO CASH IN THE BANK

€18 M NAME

A S S O C I AT I O N S P O R T I V E DE MONACO FOOTBALL CLUB CITY

NET DEBT

€14 8 M

P R I N C I PA L I T Y O F M O N AC O FOUNDED

3 AU GUS T 195 0

AV E R AG E AT T E N DA N C E

9, 0 3 8

AQ U I S I T I O N DAT E

D E C E M B E R 2 0 11

E S T. O W N E R / S N E T W O R T H

€ 7. 5 B N † AS Monaco is another club that has enjoyed considerable growth thanks to the backing of an extremely wealthy owner. Since 2011 the club has received significant investment and has become an emerging force in European football, reaching the UEFA Champions League semi-final in 2016-17. One factor that draws much attention is the value of the club’s players. Monaco generates a lot of money from transfer of players to Europe’s richest clubs and has become a benchmark in youth academy development. One of the variables that most impacted the final value is its squad, the 18 th most valuable team in the world – as well as the investment potential of its owner.

OWNERSHIP

66.7%

E K AT E R I N A R Y B O LO V L E VA TRUST

33.3%

HOUSE OF GRIMALDI

† ESTIMATED NET WORTH OF AS MONACO PRESIDENT, DMITRY RYBOLOVLEV

28

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€ 210 M

# 20

FFI SCORE

1 .11 9

FIXED ASSETS

€72M

LEICESTER CIT Y FC

CASH IN THE BANK

€ 41M

NAME

NET DEBT

LEICESTER CIT Y FOOTBALL CLUB

€14 M

LIMITED CITY

LEICESTER, UNITED KINGDOM

AV E R AG E AT T E N DA N C E

31,9 0 0

FOUNDED

18 8 4 E S T. O W N E R / S N E T W O R T H AQ U I S I T I O N DAT E

AUGUST 2010

€4.3BN† OWNERSHIP

Leicester City was a little-known club in world football until the 2015-16 season, when they won the Premier League title, outperforming the more fancied names in England and their considerably higher budgets. Reaching the quarterfinals of the Champions League in 2016-17 was also a milestone in the club’s history. Leicester City is owned by a Thai tycoon, which creates a big differential in competing in the market.

The squad is the 22 th most valuable in the global market, but its low debts and high value of its owner’s equity give the club a prominent position in the ranking.

10 0%

KING POWER I N T E R N AT I O N A L G R O U P (VICHAI SRIVADDHANAPR ABHA )

† ESTIMATED NET WORTH OF LEICESTER CITY CHAIRMAN, VICHAI SRIVADDHANAPRABHA.

29

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€229M

# 21

FFI SCORE

1. 0 0 2

FIXED ASSETS

€90M

B AY E R LEVERKUSEN

CASH IN THE BANK

(NA)

NAME

NET DEBT

B AY ER 0 4 L E V ER K U S EN

(NA)

FUSSBALL GMBH CITY

LEVERKUSEN, GERMANY

AV E R AG E AT T E N DA N C E

28,245

FOUNDED

1 J U LY 19 0 4 E S T. O W N E R / S N E T W O R T H

€ 31.9 M Bayer Leverkusen is one of the most traditional clubs in the Bundesliga (albeit without ever winning it), and one of few owned by a corporation. The backing of pharmaceutical giant Bayer AG pushes the club to 21st place of our ranking, which means that in theory, the club has the necessary financial backing to revive its glory days (end of 1990’s and beginning of 2000’s), when the club was runner up in the Bundesliga and even played a UEFA Champions League final, against Real Madrid in 2002. However, it is important to point out that clubs ran, de facto, by corporations tend to have a much more conservative approachwhen it comes to signing players.

OWNERSHIP

10 0%

B AY ER AG

30

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€10 8 M

# 22

FFI SCORE

0 .9 9 3

FIXED ASSETS

€18 0 M

F C S H A K H TA R DONETSK

CASH IN THE BANK

(NA)

NAME

NET DEBT

F U T B O L N I Y K L U B S H A K H TA R

(NA)

CITY

DONETSK, UKRAINE FOUNDED

AV E R AG E AT T E N DA N C E

8,000*

193 6 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

SINCE 19 96

€3.8BN†

Shakhtar Donetsk is another good example of a club that has grown considerably since being acquired by a tycoon. The owner is the richest man in Ukraine and, under his control, the trophies have multiplied. All the national trophies won by the club came after the 1996 arrival of Rinat Akhmetov. The 10 league titles have been won since 2000.

In 1999, Mr Akhmetov built the club’s modern stadium, on par with the best in the world at that time. But the conflict between Ukraine and Russia over the peninsula of Crimea directly impacted the club - the stadium was damaged by military attacks in August 2014 and the club was forced to play outside Donetsk.

Its ranking is a result of the wealth of its owner, its fixed assets and the value of its squad of players, the 42nd most valuable in the world.

OWNERSHIP

10 0%

R I N AT A K H M E TO V ( S Y S T E M C A P I TA L MANAGEMENT )

* AVERAGE ATTENDANCE FELL DRASTICALLY, DUE TO THE IMPOSSIBILITY OF PLAYING ON ITS OWN GROUND. AT DONBASS ARENA, IN DONETSK, THE AVERAGE HAS SURPASSED 30,000 PER MATCH. † ESTIMATED NET WORTH OF SHAKHTAR DONETSK PRESIDENT, RINAT AKHMETOV

31

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€637M

# 23

FFI SCORE

0 .9 5 5

FIXED ASSETS

€534M

NEW YORK RED BULLS

CASH IN THE BANK

€ 75M

NAME

NET DEBT

NEW YORK RED BULLS

€15 M

CITY

NEW YORK, USA FOUNDED

AV E R AG E AT T E N DA N C E

4 7, 0 0 0

19 94 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

9 MARCH 2006

€16 .9 B N †

The New York Red Bulls were the first major football club acquired by the Austrian energy drink conglomerate, Red Bull GmbH, as part of Dietrich Mateschitz’s strategy to diversify the company’s investment into mainstream sports. The company had previously enjoyed success with the ownership of a Formula 1 team, and decided to acquire the control of various football clubs in different countries – an approach later adopted by the City Football Group, which created the Red Bulls rivals, New York City FC. Although MLS rules (such as salary cap and the home grown player rule) may deter owners from spending too much on player signings, the owner’s wealthy pockets have allowed the club to sign important “designated players” throughout the years (such as the French international Thierry Henry) and, more importantly, to make a massive investment in infrastructure, with the construction of the Red Bull Arena, in 2010.

OWNERSHIP

10 0%

RED BULL ( D I E T R I C H M AT E S C H I T Z )

† ESTIMATED NET WORTH OF RED BULL OWNER DIETRICH MATESCHITZ

32

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€19 M

# 24

FFI SCORE

0.860

FIXED ASSETS

€266M

S E AT T L E SOUNDERS FC

CASH IN THE BANK

(NA)

NAME

NET DEBT

S E AT T L E S O U N D E R S F C

(NA)

CITY

S E AT T L E , U S A FOUNDED

AV E R AG E AT T E N DA N C E

42,80 0

19 94 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

SINCE 2002

€2.4BN†

A solid business model underpins Seattle Sounders, the latest club to bear a name that dates back decades in North American soccer. Although the MLS generates values ​​somewhat lower than other leagues, the financial strength of the Seattle team is notable.

Sounders are one of the most valuable clubs in the Americas thanks to the strength of its assets as well as the enormous investment potential of its owners. Despite some peculiar regulations by the MLS, such as the league’s salary cap, clubs are allowed to circumvent that cap with the hiring of a number of “designated players” under the so-called “Beckham rule”.

That means that, in theory, the club still has an enormous potential to invest in assets, including players. The Sounders’ strengths are in the high value of the Century Link Field stadium and owner wealth.

OWNERSHIP

10 0%

ADRIAN HANAUER, JOE R OT H , PAU L A L L E N , D R E W CAREY

† FIGURE EQUATES TO 15% OF PAUL ALLEN’S ESTIMATED NET WORTH IN ACCORDANCE WITH THE PERCENTAGE OF THE CLUB HE OWNS.

33

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€18 M

# 25

FFI SCORE

0.844

FIXED ASSETS

€237M

NEW YORK CIT Y FC

CASH IN THE BANK

(NA)

NAME

NET DEBT

NEW YORK CIT Y FOOTBALL CLUB

(NA)

CITY

NEW YORK, USA FOUNDED

AV E R AG E AT T E N DA N C E

2 7, 1 9 6

2 1 M AY 2 013 AQ U I S I T I O N DAT E

E S T. O W N E R / S N E T W O R T H

2 1 M AY 2 013

€30BN†

New York City FC, along with Orlando City, joined MLS in 2015. The arrival of the club made a huge impact in the league and it has already become one of its most valuable. The club is part of the City Football Group (which also owns Manchester City FC) and enjoys the support of the group that manages the baseball club NY Yankees, the most valuable franchise in the US. The strength of the New York club is its assets and especially the potential investment of its owners. The squad value is rated only 98 th in the world.

OWNERSHIP

80%

CIT Y FOOTBALL GROUP

20%

YA N K E E G LO B A L ENTERPRISES

† NET WORTH OF ABU DHABI UNITED GROUP OWNER SHEIKH MANSOUR BIN ZAYED AL NAHYAN.

34

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€380M

# 26

FFI SCORE

0 . 814

FIXED ASSETS

€9M

NAPOLI FC CASH IN THE BANK

€3M NAME

S O C I E TÀ S P O R T I VA C A LC I O N A P O L I NET DEBT CITY

N A P L E S , I TA LY FOUNDED

1 AU GUS T 19 26

€66M AV E R AG E AT T E N DA N C E

3 9, 0 9 9

AQ U I S I T I O N DAT E

AUGUST 20 04 E S T. O W N E R / S N E T W O R T H

€550M Napoli is a passionately supported club that went through serious financial problems and after passing through different owners was bought by filmmaker Aurelio De Laurentiis. He put the Neapolitan club back among the Italian football elite through good results on the field. Napoli is the second Italian club in the Soccerex ranking, and the value of its squad is the main driver in placing the club among the Top 30.

The squad is the 14 th most valuable in the world and the second most valuable among Italian teams.

OWNERSHIP

10 0%

AURELIO DE L AURENTIIS (FILMAURO)

35

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€296M

# 27

FFI SCORE

0.775

FIXED ASSETS

€12 M

EVERTON FC CASH IN THE BANK

€0 NAME

EVERTON FOOTBALL CLUB LIMITED NET DEBT CITY

LIVERPOOL, UNITED KINGDOM FOUNDED

1878

€60M AV E R AG E AT T E N DA N C E

3 9, 3 1 0

AQ U I S I T I O N DAT E

FEBRUARY 2 016 E S T. O W N E R / S N E T W O R T H

€2BN† Everton, based in Liverpool, had most of its shares acquired by the English tycoon of Iranian origin Farhad Moshiri in 2016. The club’s current majority shareholder was once a shareholder at Arsenal, mainly due to the involvement of Alisher Usmanov. Moshiri sold his stake to Usmanov and subsequently acquired Everton shares. The financial impetus of Moshiri’s arrival should enable the club to grow in the coming years. Much of the formation of its final value comes from its playing assets.

Everton has the 18 th most valuable squad in the world.

OWNERSHIP

4 9.9 %

FARHAD MOSHIRI

12 . 2 %

BILL KENWRIGHT 8 .9 %

JON WOODS

29% MINORIT Y SHAREHOLDERS

† ESTIMATED NET WORTH OF FARHAD MOSHIRI.

36

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€15 M

# 28

FFI SCORE

0.739

FIXED ASSETS

€17 0 M

NEW ENGLAND REVOLUTION

CASH IN THE BANK

(NA)

NAME

NEW ENGLAND REVOLUTION NET DEBT CITY

FOXBOROUGH, MA, USA FOUNDED

6 JUNE 19 95

The New England Revolution is one of the founders of the MLS and one of the most long-standing franchises in soccer. The club is owned by billionaire Robert Kraft and family. They also own one of America’s most successful sporting club, NFL’s New England Patriots, who also play in the Gillette Stadium. The Revs, as there are known, have alternated strong seasons with weaker ones. Backed by the Kraft’s financial power, the club has reached the finals of the MLS Cup five times without ever winning it. Despite its enormous potential, the club has so far failed to cause a major impact in terms of signing big names as designated players.

(NA) AV E R AG E AT T E N DA N C E

2 0 ,1 8 0 E S T. O W N E R / S N E T W O R T H

€3.5M OWNERSHIP

10 0%

ROBERT K. KRAFT

37

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€16 2 M

# 29

FFI SCORE

0.690

FIXED ASSETS

€263M

VA L E N C I A C F CASH IN THE BANK

€5M NAME

VALENCIA CLUB DE FÚTBOL, SAD NET DEBT CITY

VA L E N C I A , S PA I N FOUNDED

18 M A RCH 1919

€290M AV E R AG E AT T E N DA N C E

41, 5 0 0

AQ U I S I T I O N DAT E

AU GUS T 2 014 E S T. O W N E R / S N E T W O R T H

€1. 8 B N † Valencia CF is one of the most successful clubs in Spanish football, with six La Liga titles, seven Spanish Cups and reached two consecutive UEFA Champions League finals at the turn of the century. The club is thought to have the third largest number of supporters in Spain. The Singaporean billionaire Peter Lim acquired the majority of the club (70.4%) in 2014.

His personal financial power is a major contributor to Valencia’s inclusion in the top 30 of the Soccerex ranking.

Valencia’s relatively high debt, however, prevents the “murciélagos” (the bats) to feature higher in the list.

OWNERSHIP

70.4%

PETER LIM

2 9. 6% M I N O R I T Y S H A R E H O L D E R S

† ESTIMATED NET WORTH OF PETER LIM.

38

SOCCERE X FOOTBALL FINANCE 10 0

•

TOP 30

PL AY ER S

€637M

# 30

FFI SCORE

0.665

FIXED ASSETS

€534M

INTER MILAN CASH IN THE BANK

€ 75M NAME

NET DEBT

FOOTBALL CLUB INTERNA ZIONALE

€15 M

M I L A N O S . P. A .

CITY

M I L A N , I TA LY

AV E R AG E AT T E N DA N C E

4 7, 0 0 0

FOUNDED

9 M A RCH 19 0 8 E S T. O W N E R / S N E T W O R T H AQ U I S I T I O N DAT E

28 JUNE 2 016 BY SUNING GROUP

Inter Milan is one of the most successful clubs in Italy and Europe, having won the national league, Serie A, 18 times and the UEFA Champions League three times. After 20 years under the ownership Massimo Moratti, a majority of the club was bought in 2013 by the Indonesian consortium International Sports Capital, led by Erick Thohir. In 2016, he sold the majority of the shares to the Suning Commerce Group, a holding owned by the Chinese Zhang Jindong, who also acquired the shares that were still with Moratti. Suning’s investment has brought the club a renewed power to invest and thus brings Inter into our top 30. A relatively large net debt, plus the lack of valuable fixed assets (the club does not own its own stadium) prevent the club to be featured higher in the list.

€4BN† OWNERSHIP

68.55%

SUNING COMMERCE GROUP (ZHANG JINDONG)

31.0 5%

I N T E R N AT I O N A L S P O R T S C A P I TA L

0.37% PIRELLI 0.03% MINORIT Y SHAREHOLDERS

† ESTIMATED NET WORTH OF SUNNING COMMERCE GROUP FOUNDER, ZHANG JINDONG.

39

SOCCERE X FOOTBALL FINANCE 10 0

06

•

CONCLUSION

CONCLUSION

Football is a game of surprises and sometimes a tale of the unexpected as our report clearly shows. Ask anyone which club has the strongest financial position and they will most likely respond by telling you that Real Madrid, Barcelona or Manchester United are the most resourced clubs on the planet.

But there’s more than one way to determine who actually has the greatest financial potential and it is equally important to consider the factors that are shaping modern football’s global reality. By looking at a club’s assets, cash reserves and net debt and factoring in their owners potential for investment, we have presented a new global hierarchy, one which recognises the challenge of football’s emerging powerhouses to the established elite.

The dominance of UK clubs at the top of the rankings should come as no surprise with the influx of wealthy owners and coffers that have been swollen by vast broadcasting deals. That the upper echelons should also be shared with clubs from eight other nations highlights just how global the game has become.

This report shows that football’s pecking order can be redrawn by investment that can transform a club from a perpetual underachiever to a global powerhouse in the space of a few years.

Football has, effectively, become an asset class to be placed in a portfolio alongside bonds, real estate and equities. Which means the shift from also-ran to trophy-winning behemoth can be achieved in a relatively small timeframe. But, like everything else in life these days, the footballing hierarchy can change quickly, so in 12 months’ time, the Soccerex Football Finance 100 could look very different indeed.

40

SOCCERE X FOOTBALL FINANCE 10 0

07

•

AUTHORS & CONTRIBUTORS

AUTHORS & CONTRIBUTORS

This report was prepared for Soccerex by independent sports business expert, Amir Somoggi in partnership with JF Sports Consulting, with additional editorial support provided by Neil Jensen of Isherwood Editorial.

41

AMIR SOMOGGI Amir Somoggi is a sports marketing and management consultant with over 16 years’ experience in the sports industry. He is a Linkedin Influencer, public speaker, guest lecturer, author of hundreds of reports, surveys and articles in the field of sports, and columnist for Lance! - Brazil’s most prominent sports paper. He specialises in consultancy to clubs, sponsors, agencies and investors and has extensive experience in sport marketing projects, sponsorship, branding, football clubs´ “globalisation” projects, financial viability and business planning.

SOCCEREX Soccerex is the global leader for the business of football with over two decades of experience in connecting the industry’s key industry stakeholders and promoting the growth of the game worldwide.

Working closely with regional governments, football federations, major leagues and clubs, Soccerex have delivered over 40 events in 16 different cities around the world, uniting more than 50, 000 business and football figures to further their different commercial and sporting objectives.

In addition, Soccerex provide industry news and insight in the form of daily industry news bulletins and bespoke market insight such as the Soccerex 20 Under 21 Report and the Soccerex Football Finance 100.

For more information on upcoming Soccerex events and insight products please go to www.soccerex.com

J F S P O R T S C O N S U LT I N G JF Sports Consulting supports companies that strive to develop business within the sports marketplace, primarily covering areas such as strategy, market intelligence and business development. With close contact and access to most International Sports Federations, the company services a vast array of clients, from sports marketing agencies, to IFs, academic institutions, technology start-ups, other sports bodies and service providers in Europe, Americas and Asia.

JF Sports Consulting is headed by Joao Frigerio, a sports business professional with an established career in the industry. He is a confirmed strategic problem-solver with extensive experience in creating solutions and developing innovative plans to drive business objectives for clients across multi-sectors.

NEIL JENSEN, ISHERWOOD EDITORIAL Neil Jensen is an experienced business and football writer and columnist specialising in European football, financial technology, travel and investment banking. He worked in the City of London for one of Europe’s leading financial institutions as editorial director before taking career retirement to concentrate on freelance writing through his UK-based agency, Isherwood Editorial. He is a former football club director and the editor of the award-winning website Game of the People (www.gameofthepeople.com).

SOCCERE X FOOTBALL FINANCE 10 0

•

2018 EDITION

T

+44 208 987 5522

E

ENQUIRY@SOCCERE X .COM

W

W W W.SO CCERE X .CO M