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In the first week of January, Soccerex released a list of the most valuable football clubs in the world. The name might not sound common since it is mostly Forbes or Deloitte's Football Money League we look up to for such rich-lists.
Soccerex has compiled the list of the richest clubs in a more comprehensive manner in contrast to the aforementioned organisations, who produce rich lists on the basis of just revenues incurred, operating income and net debt.
Soccerex, on the other hand, has used a five-scale model in order to obtain a Football Finance Index (FFI), a score which helped in deciding the richest football club in the world. The FFI is calculated keeping the following in mind:
- Playing assets - Market values of the players
- Fixed assets - values of training centres and stadiums
- Cash in the bank
- Owner Potential Investment - An index of Soccerex that describes the extent up to which an owner can invest in a club.
- Net debt
The most astounding part of this list is the fact that the likes of Barcelona, Atletico Madrid and Liverpool have failed to make it to the top ten, coupled with a lot of other surprises. It is crystal clear that revenues aren't the sole factor that has decided the outcome. With those giants missing out, which ten clubs have made it to the list? Let's have a look:
Note: All transfer and market values courtesy - Transfermarkt.com
#10 Bayern Munich
FFI Score: 2.086
Reigning Bundesliga champions Bayern Munich made it to the top ten list by beating Russian giants Zenit St. Petersburg, who finished 11th amongst the list of top 100 richest clubs around the globe.
The club has minority shareholders like Adidas, Audi and Allianz, while 75% ownership lies with the club members. The Bavarians also have 0 net debt value - the best amongst the ten clubs.
The club has a high player asset value worth €603 million. Robert Lewandowski is their most valuable player for €80 million, followed by Thiago Alcantara and James Rodriguez. Also, their ability to churn out excellent results without making marquee signings is appreciable.
In an age where other European giants are ready to shell out large chunks of cash, Bayern is a club that stands strong by its values and principles. Though they don't invest heavily in the market, they have provided stiff competition to other heavyweights in the UEFA Champions League.
#9 Chelsea
FFI Score: 2.093
Roman Abrahamovic's arrival in 2003 kick-started a revolution at Chelsea. The London-based club's flurry of deals since the Russian billionaire's takeover has transformed them into a major powerhouse in Europe.
However, in spite of their regular and significant activities in the transfer market, the Blues have also accumulated herculean net debt figures, extending up to €800 million. That is perhaps the crucial reason why the otherwise wealthy club is placed so low on the list.
Eden Hazard, their most talented player, is also the most valuable one, valued at €100 million. Also, his teammates N'Golo Kante, Thibaut Courtois and new signing Alvaro Morata have market values of €50 million and above.
#8 Juventus
FFI Score: 2.260
Juventus have reinstated themselves amongst the premier clubs in the world under Massimiliano Allegri. Andrea Agnelli, the current chairperson and owner, boasts a lion's share in the revival club after they were plunged into tough times following punishments received for maladministration of the club in 2006.
The Turin-based club has a comparatively low average attendance of 39500 per game, which can be cited as a vital area where the club fails to make money. That is down to the fan following they boast, which is certainly way behind the other European heavyweights.
The Juventus squad worth €470 million has a surfeit of talent that they have showcased in the past three years, dominating the Serie A and reaching the Champions League finals twice. Paulo Dybala is their most valuable player with a market value of €85 million followed by Gonzalo Higuain (€70 million).
#7 Manchester United
FFI Score: 2.314
There comes the first shock! A club who usually locks horns with Real Madrid for the crown of the richest club in the football world fails to penetrate even the top 5 in this list. How's that even possible?
Manchester United have notched excellent figures in almost every department this list is based upon.
However, according to Soccerex's report, Malcolm Glazer's total acquisition of the club in 2015 has seen the debt figures getting doubled. The American owners are in charge of 92.25% of the total shares while the remaining belong to minority shareholder George Soros.
They have a stellar squad value of €524 million, with fixed assets extending up to €347 million. Also, their cash in the bank value (€307 million) is the best on the list. Their record signing Paul Pogba is also their most valuable man with a value of €90 million, followed by newcomer Romelu Lukaku, Anthony Martial and David De Gea.
Just like with Chelsea, it is the net debt value that has proven to be a crucial reason for this lowly ranking amongst the world's richest football institutions.
#6 Real Madrid
FFI Score: 2.579
Just like you guys, even I was dumbfounded seeing Los Blancos' position! Care to know how this became possible? Another astonishing fact is that Real Madrid is the only Spanish club that makes this list, with Barcelona and Atletico missing out.
According to the report compiled by Soccerex, the ownership of the club is its biggest drawback; a reason why they scored a low FFI and ultimately a low rank on the list.
Real Madrid is owned totally by the club members which constitute a non-profitable organisation. But, if they were capitalised via the stock exchange, more lucidly, owned by a business organisation, they would have easily held the crown as financially the most powerful club on earth.
The club has notched impressive figures for their playing and fixed assets. Los Merengues boast the most expensive squad on the list worth €771 million. Obviously, Cristiano Ronaldo is their most precious player, with a market value of €120 million. He is followed by Toni Kroos, Gareth Bale and Isco.
#5 Tottenham Hotspur
FFI Score: 2.591
Surprise number three! In contrast to heavyweights like Manchester United and Real Madrid, The Lilywhites have a team with a lesser depth of talent. Also, they aren't as popular as other European giants, but that doesn't seem to have hampered their chances of finishing above the two clubs.
Tottenham is a club owned by the ENIC Group, with Joe Lewis and Daniel Levy being two of their most vital men in the managerial hierarchy. The club's impressive position on the list is down to their wise investment in its fixed assets, an increased wage bill and growing involvement in transfers over the past two years.
The construction of a new White Hart Lane will see an increase in the capacity and will help generate a better matchday revenue for the club as well.
Also, they have the lowest squad value amongst the European giants (€463 million). Coming to the team, Tottenham's most valuable man is undoubtedly Harry Kane, valued at €120 million, followed by Dele Alli and Christian Eriksen.
#4 Guangzhou Evergrande FC
FFI Score: 3.423
Guangzhou Evergrande is the first non-Asian club to make it to the top ten list. The club represents China's growing influence in the world of football. It is also the most valuable Chinese club and has the second most valuable team in the Chinese Super League.
Owned by the Evergrande and Alibaba groups, the club's stellar ranking is a result of the monumental investment potential of owners (€1050 million), the decisive and the most vital factor that contributes to this study.
The investment potential, as mentioned before, is the ability of the owner to inject cash in the overall development of the club, and the Chinese club has notched the best figures in that department.
The net worth of their owners is €32 billion, the best amongst the clubs on the list.They have the lowest squad value worth just €46 million! However, in spite of their shortcomings, Jack Ma and Co. have made it sure that the club provides stiff competition to the European giants in finances.
#3 Paris Saint-Germain
FFI Score: 4.128
Paris Saint-Germain have left everyone astounded this season, thanks to their herculean investment in the transfer market following the high-profile signings of Neymar and Kylian Mbappe. They are in scintillating form at the moment and have established themselves as favourites for the UEFA Champions League title this season.
Purchased by Qatar Sports Investments (QSI) group back in 2011, Les Parisiens have emulated the Chinese clubs when it comes to dependency on the owners.
Having a high owner investment potential is a crucial factor in their rank and the club has chairperson Nasser Al-Klelaifi to thank for everything. However, they could have had a higher rank if not for their low fixed asset value of just €83 million.
Neymar is undoubtedly their most prized asset worth €150 million, with Kylian Mbappe and Marco Veratti in the line behind him.
#2 Arsenal
Arsenal won the FA Cup last season
Score: 4.559
The latest bombshell in the list. It is but natural to think how the Gunners have left behind a host of giants and attained such an unexpected yet impressive position on this list.
Owners Stan Kroenke and Alisher Usmanov can potentially invest in the club. Notably, Arsenal have a giant fixed asset value of €766 million and a low net debt value of €8 million. Also, Soccerex accounts the club's sound business model as the reason why the owners have a good potential to invest, should they plan on changing their business strategies.
Their most valuable player is Alexis Sanchez for €70.86 million, who is close to leaving the club in this transfer window. He is followed by newcomer Alexandre Lacazette and Mesut Ozil.
In spite of all the financial muscle they possess, their incompetence in the transfer market does raise questions regarding their ambitions. They should definitely be investing more in the squad, don't you think?
#1 Manchester City
FFI Score: 4.883
You might have guessed this one by now. According to Soccerex, The Citizens command the best financial muscle in the world as of late. They are a fine example of how money can transform a mid-table club into champions.
Abu Dhabi United Group holds 87% shares of the club while the rest lies with China Media Capital. Such ownership is bound to place you on the pedestal, isn't it?
The club has invested heavily in their stadium and training centres which gives them impressive numbers in the fixed assets department. Also, the mammoth broadcast deals of the Premier League and the investment potential of the owners have added to the injection of cash.
A very low net debt value of just €15 million is also a crucial reason behind their position.
Manchester City boast a valuable squad worth €637 million and thanks to his stellar form, Kevin De Bruyne is their most prized asset, believed to be worth €110 million. Following him, are Raheem Sterling, Sergio Aguero and Leroy Sane.
