Real Madrid's €6.3 billion valuation pulls away from rivals
LONDON – Real Madrid, whose revenues have been supercharged by the revamp of their Santiago Bernabeu stadium, have seen their valuation pull away from their major rivals.
The Spanish club were worth €6.3 billion (S$9.2 billion) as of January, a 23 per cent year-on-year increase, Football Benchmark said in its latest annual report.
The valuation is comparable with the biggest names in US sport.
Last week, NFL owners approved the sale of a 6.2 per cent stake in the San Francisco 49ers to three investor groups at an US$8.5 billion (S$11 billion) valuation, the highest ever for a sports team. The Boston Celtics are currently being sold for a valuation of US$6.1 billion.
Real recently undertook a €1.76 billion renovation of their iconic stadium, and have acquired players including French star Kylian Mbappe and English talent Jude Bellingham.
Chairman Florentino Perez believes the 15-time European champions are worth more than €10 billion. Real are currently a non-profit club formed by hundreds of fee-paying fans – a system that blocks private investors from owning stakes in it as the fans do not own shares.
Manchester United, once the most valuable football club in the world, have seen the gap with their Spanish rivals widen. The English club's valuation grew more modestly by 4 per cent to €5.05 billion.
The slowing growth was partly explained by a 15 per cent increase in staff costs, which outpaced revenue growth and resulted in a net loss of €132 million, the second-worst performance among the top 32 clubs in Europe after Italy's Juventus (€199 million).
Part-owner Jim Ratcliffe, who took over the running of the club in early 2024, has since set about slashing costs and cutting staff, in a bid to manage costs at the club.
The club's valuation is expected to fall further as they prepare for the first season in a decade without European football. Last week's 1-0 defeat in the Europa Cup final against Tottenham Hotspur was a bitter blow after a disastrous season in which the team finished 15th in the Premier League.
Over the past decade under the Glazer family ownership, United's valuation has grown 74 per cent, the second-lowest of Europe's top 10 teams, according to Football Benchmark.
In comparison, Qatari-backed Paris Saint-Germain, who are competing in this weekend's Champions League final, have boosted their valuation by 346 per cent to €3.76 billion. Inter Milan, the other finalist in the Champions League, have seen their valuation grow by 330 per cent in the past decade.
Chelsea, under the ownership of Todd Boehly and Clearlake Capital, dropped one spot to 10th in terms of current valuations, whereas Arsenal moved to seventh.
There are 17 teams in Europe with an enterprise valuation exceeding €1 billion, up from just eight in 2016. BLOOMBERG
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