Real Madrid and Manchester City, the richest clubs in football

They do not only dominate on the pitch. They also lead in the boardroom. A survey by the sports consultancy Spobis indicates that Manchester City and Real Madrid generate the highest global revenue from major sponsorships. City receive about 87.3 million dollars a year from Etihad Airways, while Real Madrid receive roughly 81.5 million dollars from Emirates. However, Real Madrid top the list for kit sponsorships, bringing in around 302.6 million dollars annually, followed by City with approximately 246.8 million dollars.

Both clubs are also considered the richest in the world. An annual report by Football Benchmark, published earlier this year, confirmed Real Madrid as the most valuable club globally, with a valuation of about 6.93 billion dollars. The report notes a 116 percent increase since 2016 and highlights the club’s resilience during the pandemic. Real Madrid were also cited as the only major European club to register a positive cumulative net profit over the past decade.

“It is not just about the financial aspects. The brands that sponsor us want visibility in key locations and access to the communities they can reach. When our matches are broadcast worldwide, as happens with the Premier League for example, we increase our visibility and attract a greater number of global brands,” says Renê Salviano, CEO of Heatmap and a specialist in sponsorships and sports marketing activations.

Following Real Madrid are Manchester City, valued at roughly 5.65 billion dollars, and Manchester United, valued at about 5.60 billion dollars. Premier League teams dominate the top positions, with six clubs in the top ten.

“It will be difficult to dethrone Real Madrid from this position because it remains one of the most traditional clubs and continues to face, and beat, teams owned by Asian billionaires that have risen to prominence in recent decades. Real Madrid are still regarded as a brand that represents more than wealth. It is a story that transcends money,” says Thiago Freitas, director of operations at Roc Nation Sports.

Real Madrid already surpassed Manchester City last season as the world’s highest earning club, thanks to a combination of sporting performance and a well established international brand strategy that is now paying off. Associating a brand with the most valuable shirt in world football means reaching almost every corner of the globe at once and leveraging values such as efficiency, professionalism, consistency, and leadership, explains Ivan Martinho, professor of sports marketing at ESPM.

When considering only main sponsorships, the top ten includes five English teams. Alongside City are Manchester United, with around 81.5 million dollars from Snapdragon; Arsenal, with roughly 67.5 million dollars from Emirates; Liverpool, with about 67.5 million dollars from Standard Liège; and Tottenham, with approximately 53.5 million dollars from AIA. The ranking also includes PSG, which receive around 81.5 million dollars from Qatar; Juventus, with roughly 80.3 million dollars from Jeep; and Bayern Munich, the only German club in the top ten, with about 58.2 million dollars from Telekom.

In Brazil, Flamengo are the club that come closest to these figures after signing a major deal with Betano this season, valued at roughly 69.8 million dollars, the highest in Brazilian football history.

“These clubs have become global brands, expanding their operations well beyond Europe, particularly into the Asian market. This expansion is what drives their valuations to these levels. We are talking about organisations with structures that extend far beyond what happens on the pitch,” says Thales Rangel Mafia, Marketing Director of Multimarcas Consórcios. According to experts, one reason for Real Madrid’s rising valuation is the renovation of the Santiago Bernabéu stadium, which, following a modernisation project, doubled its revenue per matchday.

“It is very positive to see this type of technology, since the pitch is the main stage of the game. Quality maintenance, treatment, fertilisation, photosynthesis, and temperature control leave the grass in ideal conditions for matches, giving it the attention it deserves. Unfortunately, this level of renovation is far beyond what we can achieve in the Brazilian market. These are major investments for those with the resources to finance high level sport,” says Sergio Schildt, president of Recoma, a company specialising in sports infrastructure.

“Modernising stadium structures, like the Bernabéu, allows clubs to offer accessibility, safety, and comfort to the public. Moreover, adequate infrastructure enables stadiums to host major sporting events, attracting tourists and boosting the local economy. As more stadiums adopt new technologies, the public becomes the main beneficiary,” adds Tironi Paz Ortiz, CEO of Imply, a leading supplier of technologies such as facial recognition and biometrics for access to football clubs, stadiums, and arenas in Brazil.

Barcelona, Real Madrid’s historic rival, are also among the highest valued clubs, ranking in the top ten with a valuation of roughly 5.00 billion dollars. PSG also feature, valued at about 4.21 billion dollars. Several English clubs stand out, including Aston Villa, which recorded a 42 percent increase in business valuation.

On the other hand, the Football Benchmark study highlights negative trends, particularly the collective losses of more than roughly 523.8 million dollars suffered by most European clubs last season, with Real Madrid being the lone exception.

“Football has become an increasingly profitable business. In general, clubs understand that the more they invest in the product, the greater the return. Modernising stadiums, securing commercial agreements, and building competitive squads are all directly linked to higher annual revenues. It is no surprise that the clubs generating the most income are those investing the most in these areas,” says Claudio Fiorito, CEO of P and P Sport Management Brazil.