Real Madrid is now worth $3.4 billion, according to my math, $100 million more than we valued the
Spanish soccer team in April. The boost in RM’s value secures its spot
as the most valuable sports team in the world for now, although
Manchester United are right behind them. The publicly traded English
soccer team had an enterprise value of $3.3 billion yesterday.
The financial results announced by
RM yesterday for fiscal 2012-13 show revenue increasing 5.5%, to $686
million. RM is the only sports team that generates over $600 million in
annual revenue,
having done so each of the past three years. RM’s operating income (earnings before interest, taxes, depreciation and amortization, and the disposal of non-current assets like players) increased 2.3%, to $174 million (in Euros, revenues went up 1.3% and operating income fell 1.5%). RM’s balance sheet also became stronger over the past year, with the team’s debt-operating income ratio falling to 0.6 from 0.8.
Nipping on RM’s heels are Manchester United, which has yet to post its 2012-13 full-year results. But in the third quarter the English soccer team posted stellar results, with record revenue of $143 million and operating income of $39 million. For the full year, Manchester United believes revenue will be around $554 million and operating income will come in at roughly $168 million. If the Red Devils do indeed finish the year with those results, RM will still maintain its slight valuation lead over the English team.
But surprises can always emerge from the lucrative Champions League tournament, where payouts to teams generally depend depending on performance. Last season, Manchester United and Real Madrid had disappointing tournaments, as Bayern Munich captured the Champions League by knocking off German rival Borussia Dortmund 2-1 in the final.
Manchester United's striker Wayne Rooney
(C) vies with Real Madrid's midfielder Xabi Alonso (L) and Real Madrid's
Portuguese defender Fabio Coentrao (2nd R) during the UEFA Champions
League round of 16 first leg football match Real Madrid CF vs Manchester
United FC at the Santiago Bernabeu stadium in Madrid on February 13,
2013
having done so each of the past three years. RM’s operating income (earnings before interest, taxes, depreciation and amortization, and the disposal of non-current assets like players) increased 2.3%, to $174 million (in Euros, revenues went up 1.3% and operating income fell 1.5%). RM’s balance sheet also became stronger over the past year, with the team’s debt-operating income ratio falling to 0.6 from 0.8.
Nipping on RM’s heels are Manchester United, which has yet to post its 2012-13 full-year results. But in the third quarter the English soccer team posted stellar results, with record revenue of $143 million and operating income of $39 million. For the full year, Manchester United believes revenue will be around $554 million and operating income will come in at roughly $168 million. If the Red Devils do indeed finish the year with those results, RM will still maintain its slight valuation lead over the English team.
But surprises can always emerge from the lucrative Champions League tournament, where payouts to teams generally depend depending on performance. Last season, Manchester United and Real Madrid had disappointing tournaments, as Bayern Munich captured the Champions League by knocking off German rival Borussia Dortmund 2-1 in the final.
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