Real Madrid Tops The World's Most Valuable Sports Teams

Real Madrid has been a giant of European soccer for the past century, racking up a record 32 La Liga titles and nine UEFA Champions League trophies. The club’s success has fueled a global following and attracted superstar players over the last 20 years like Raul, Ronaldo, David Beckham, Zinedine Zidane and Cristiano Ronaldo.

Real Madrid can add one more trophy to its case: It is now the world’s most valuable sports franchise, worth $3.3 billion, surpassing former No. 1 Manchester United. Los Blancos have the highest revenues of any team in sports ($650 million during the 2011-12 season), and revenues are up 62% over the last three years. Madrid’s operating income (earnings before interest, taxes, depreciation and amortization and player trading) of $134 million is second only to the NFL’s Dallas Cowboys among sports teams.

The revenue spigot isn’t shutting off anytime soon. The club extended its kit supply deal with Adidas last year in a pact worth $42 million a year. Madrid inked its largest sponsorship deal ever this spring with Emirates. The deal to put the Dubai-based airline’s name on the team’s shirts is worth $39 million annually for five years starting next season. Madrid is planning a $320 million renovation to its stadium, Santiago Bernabeu, which could add $60 million a year to revenues by 2018.

While Real Madrid is the most valuable team in sports, don’t expect its owner to cash in. The team is run by billionaire Spanish construction mogul Florentino Perez, who serves as president. But the club is owned by its 93,000 members, who pay $195 annually. Members get discounts on tickets and merchandise. The only thing comparable in the U.S. among major sports teams is the Green Bay Packers, which is owned by its 364,000 shareholders.

United ranks second with a value of $3.17 billion. The club launched an initial offering to the public in August and the stock is up 23% since then. Fans cheered United’s record 20th English Premier League title this year, while investors are excited about soaring sponsorship revenues. The Red Devils signed a seven-year, $559 million shirt sponsorship deal last year with Chevrolet. The team inked a naming rights pact for its training facility with insurer Aon in April. The deal is expected to net United more than $200 million over eight years. The club has 32 official sponsors in total. The Glazer family, who control United, also own the NFL’s Tampa Bay Buccaneers, which ranks No. 28 with a worth of $1.03 billion. The Glazers are the only family to own two of the top 50 franchises.

Source: Forbes