The Devil Is In Deloitte Detail

The media call it a 'rich list' but that's not really the case, says Philip Cornwall. It's all about revenues and in the case of Man City's rise, it owes a lot to that Etihad deal...

Last Updated: 24/01/13 at 13:30 Post Comment

Latest Articles

The Most Unsatisfying European Victory...

19 comments

Matt Stanger finds it impossible to believe that Roman Abramovich is content with the haphazard nature of Chelsea's European title victories in the last 12 months...

Mourinho Owes Benitez A Debt Of Gratitude

23 comments

Rafa Benitez has left Chelsea in excellent shape ahead Jose Mourinho's imminent return after guiding the club to Europa League glory and into next season's Champions League...

All Articles

Well, it will be interesting to see how Chelsea fans blame Rafa Benitez for this one. What happens next is up to the police as well as the FA but, amid a League Cup exit and the fall-out from Eden Hazard's boot making contact with Charlie Morgan, there is some good news for Chelsea this week.

Deloitte have published their rankings of the global turnover of clubs and the European champions sit fifth, with an income of €323m, up from sixth place and €250m a year ago. The victory against Bayern Munich - who remain fourth - helped them leapfrog Arsenal, who still had a bright side to look on as revenue rose €39m to €290m.

These figures do not reflect how much was spent to achieve these income levels, however. This is not the only such league table; Forbes produce their version later in the year, which estimates the value of clubs and reflects expenditure, too. It is a source of much irritation (here at least) when the different measures are often conflated by the media under the heading 'rich lists'.

The Deloitte Football Money League's value is in charting the extraordinary rise of football income generally, with all the leading clubs' takings rising by a minimum of roughly €30m. Real Madrid cross the €500m mark for the first time, Barcelona are not far behind and Manchester United, despite failing to reach last season's Champions League knock-out stage, are close to €400m, up from €367m.

Of course the problem with statistics is how you use them, as well as what you call them; consider the FIFA rankings. Each month you see bare stories that state Spain are top and Germany still second but do not reflect the margins. The world and European champions have a 169-point lead, and Joachim Low's side are 147 points better off than Argentina, who themselves lead Italy by 125. The next 125-point drop covers the rest of the top 10 with something to spare but the headlines would declare someone a 'big riser' or 'big faller' and often the stories themselves omit the points totals.

So with the Deloitte chart, beyond erroneous headlines such as 'Real Madrid still world's richest club' on the BBC. Manchester City are up from 12th to seventh, revenues rising to €286m from €170m, but as the full report reveals the sponsorship deal with Etihad Airways, of questionable value to the airline, plays a major part. (To be fair to the BBC, they reflect this, too; but good reporting deserves better headlines.)

Chelsea, meanwhile, issued figures in November stating that they made a £1.4m profit in their last financial year, overturning a £67.7m loss. Reporting on the detailed accounts, though, showed one-off items - such as share write-offs and a reduction in payments to sacked managers who got new jobs - without which you are talking about a £19.9m loss. Other one-off items included winning the Champions League.

To repeat a detail from above, Manchester United, even in a year where they fail in Europe and do not win a trophy, increase income by €30m. To succeed financially when you are failing elsewhere is a real achievement and it remains unclear what would happen to Chelsea and Manchester City if suddenly they were cut off from the money that gives them success, a question that relates to financial fair play as well as owners' whims.

The darker and lighter Blues have rapidly acquired global audiences but no one knows how deeply a fan in the Far East connects to the club compared to one with the physical tie of passing through a turnstile; for all the lists, we are in uncharted territory.

Reports such as Deloitte's are hugely informative because of the work that lies behind them but can also be seen as snaphots rather than warts-and-all portraits. Premier League clubs generally will rise against continental peers when the new TV deal kicks in, Deloitte observe - which will make it even more important to look at the individual detail however impressive football's overall financial outlook may appear.

Deloitte Money League, revenues in 2011/12:

1. Real Madrid: 513m euros

2. Barcelona: 483m euros

3. Man Utd: 396m euros

4. Bayern Munich: 368m euros

5. Chelsea: 323m euros

6. Arsenal: 290m euros

7. Manchester City: 286m euros

8. AC Milan: 257m euros

9. Liverpool: 233m euros

10. Juventus: 195m euros

Philip Cornwall

Football365 Facebook Fan Page

The Football365 fan page is a great place to meet like minded people, have football related discussions and make new friends.

Sky Bet

    • Retrieving latest Sky Bet odds

Most Commented

Readers' Comments

I

m starting to think Roman may never actually be happy at the top level. If he wants all conquering fancy football I wonder if he'd be better off buying a lower division side then paying outlandish salaries to attract high caliber players too good for the division.

john matrix
The Most Unsatisfying European Victory...

R

afa has to be favourite for the Everton job now, surely :) He'll realise his ambition to live and work on Merseyside again, get the best out of whoever plays for them, maybe win some cups and be thoroughly loathed by the toffee fans. What's not to like? Go ead, Ken, gimajob!

captbusby
Benitez basks in final glory

T

hat is arguably the least inspiring England I have ever seen. There is not a single name in that list that makes me think I might actually want to watch this team. Not a one.

harry hotspur
Carroll back in England squad

Latest Photos

Footer 365

Championship: Brighton launch dressing-room probe

Brighton have launched an investigation after excrement was found on the floor of the Crystal Palace dressing room.

Premier League: Stoke manager Tony Pulis says he is staying at Britannia

Tony Pulis has reiterated that he does not see himself leaving Stoke City this summer.

Allardyce keen to keep Carroll

Sam Allardyce has confirmed West Ham are keen to retain the services of on-loan striker Andy Carroll and is hopeful a deal can be finalised.

Mail Box

James Collins Is Only 29. Tough Paper Round

He is one of a number of solid shouts for players that look old before their time. We also have the final words on lovely D-Beck and a rejection of end of season playoffs...

Without Posh, Becks Could Have Been Scholes

That's one opinion, but others give their thanks to the man. We also have ideas for a relegation playoff, happy memories of the season and a defence of Liverpool's campaign...

© 2013 British Sky Broadcasting Ltd. All Rights Reserved