tribalfootball.com - February 16, 2006
Real Madrid president Florentino Perez's galacticos policy is paying off with the club now rated the richest on the planet.
Manchester United were overtaken last season in the revenue stakes by Real Madrid, the Spanish club to whom they sold David Beckham, the England captain and the world's most marketable player, in 2003.
The Deloitte Football Money League shows that Real Madrid were the richest club in the world in 2004-05, with turnover of £186 million compared with United's £166.4 million.
United topped the list of the world's top 20 clubs by revenue for the previous eight editions of the report but were leapfrogged by their Spanish rivals, who managed to increase revenues from sources such as sponsorship and merchandising by 17 per cent year on year.
Real's rise to the top of the financial pile happened even though ticket prices in Spain are substantially lower than in England.
"The club's annual revenue has doubled during the past five seasons, primarily driven by commercial revenue streams," Dan Jones, a partner at Deloitte's sports business group, said. "Growth for most other clubs in the table has tended to come more from broadcasting and match-day income. Here, Real Madrid have broken the mould."
Real have generated commercial revenues on the back of big-name players such as Beckham, Zinedine Zidane, Ronaldo and Robinho, who are part of a wider strategic plan to sell the football brand around the world through shirt sales and licensing deals.
The Spanish club's commercial revenues of £83.7 million eclipsed United's by £35 million.
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