The football new riches and the new game power setting. A historical analysis of Deloitte′s data

Last week Deloitte from UK published its traditional annual study on the European teams’ revenues.

Today's newsletter will talk about the meteoric rise of clubs that today take the sleep away from Europe's traditional football giants.

The TOP 20 teams achieved consolidated revenues of € 9.2 billion, like recorded in 2019. The only revenue that grew above the pre pandemic period was commercial revenues.

Once again Manchester City (for the second year) appeared as the team with the highest revenue in European football, € 731 million.

PSG and Chelsea, who are also part of the so-called new riches, have as well grown a lot. The French team, for example, presented the highest commercial revenues in 2022, € 383 million.

2002 x 2022- The new riches rise

Deloitte has been analyzing the clubs for many decades and traditional teams were way ahead in revenue. In the comparison of the rankings from 2002 to 2022 it is clear the rise of the new riches.

Revenues in 2002- € million.

Revenues in 2022- € million

It is clear how there was a change of scenery, even the Big 4 of UK football, after so much investment turned Big 6, with the strengthening of Chelsea and Manchester City.

PSG begun just in 2011 and Manchester City in 2018.

Inflated sponsorships explain success

One of the key factors that contributed to the evolution of the team's revenues, especially Manchester City and PSG was the support with higher sponsorships than normal. of companies linked to the group that controls the teams.

In the case of PSG, the market had the case of the Qatar Tourism Authority, with sponsorships so inflated that the entire world press reported and became a case of UEFA analysis.

When PSG was bought, commercial revenues were € 38 million. After three years reached € 323 million. Numbers that traditional giants took decades to reach, when they achieved this.

PSG revenues- € million

Comparing the teams′s revenues, it is virtually impossible that these clubs organically have managed to achieve so many commercial revenues.

Commercial revenues- € million.

Business valuation

The new riches of football, even with heavy losses and the need for constant capital injection, have skyrocketed their business.

Chelsea's recent sale showed that even with so many expenses, and accumulated debts, the business for Roman Abramovich was highly profitable, in terms of asset valuation.

That′s the same to the current PSG and Manchester City valuations.

They lose money, but continue to increase the asset appreciation, in a cycle that is only possible by the lack of rigidity of football's financial controls in Europe.