Real Madrid Become First Football Club in History to Bank €1 Billion in Revenue

There’s that old debate about whether or not money can buy you happiness. Each to their own, in that regard, but there’s one discussion point that cannot be contested: money can buy you success in football. You still have to spend it wisely, of course, but the nature of the sport’s financial sustainability rules – under UEFA’s rules, a club can spend up to 70% of its revenue on wages, transfers and agent fees – mean that the more money you make, the more you can spend on assets for your team.

It’s little wonder then that the richest, i.e. the most commercially successful around the globe, continue to thrive in the beautiful game, with Real Madrid making a unique slice of history during the 2023/24 season. They became the first football club ever to generate more than €1 billion (£844 million) in revenue in a single year, as per the annual Deloitte Football Money League.

That affords the Galacticos the chance to fork out on expensive transfer fees and player wages with gusto… hence why Kylian Mbappe was able to join the club and barely make a dent in their financial sustainability requirements – despite taking home a rumoured £240,000 wage every week. Real Madrid have won three of the last five editions of the Spanish La Liga, as well as hoisting the Champions League trophy in five of the last ten seasons. Money can certainly buy you happiness on the football pitch…

Real Top Football’s Revenue League Table

Real Madrid logoThere was good news all-round in 2023/24 for those who enjoy a bit of footballing capitalism. According to Deloitte, that was a record-breaking season in terms of revenues generated, with the top 20 clubs in their study combining for a cumulative take of €11.2 billion (£9.47 billion) – the highest amount ever recorded, and up 6% on 2022/23.

On average, their revenue was generated through a split of 44% in commercial income, 38% in broadcast revenue and 18% in matchday profits. Around 9% of the total revenue generated by the top 20 clubs came from Real Madrid alone. The renovation work on their Bernabeu Stadium home was completed in time for 2023/24, meaning that they were able to bank more from matchday revenue – they made €248 million (£209.6 million) from ticket sales, hospitality and the licensing of some seating areas.

Real also enjoyed a 20% boost to their commercial revenue to €482 million (£407.5 million), with lucrative new sponsorship deals penned alongside an uptick in the number of replica shirts and merchandise that was sold. The Spanish outfit are clear at the top of the standings, with Manchester City off the pace in second (£708.3 million) and PSG rounding out the top three (£681.3 million).

The Ten Most Revenue-Generating Football Clubs in 2023/24

The ten most revenue-generating football clubs in 2023/24 were:

  • #1 – Real Madrid (£883.5 million)
  • #2 – Manchester City (£708.3 million)
  • #3 – PSG (£681.3 million)
  • #4 – Manchester United (£651.5 million)
  • #5 – Bayern Munich (£647.1 million)
  • #6 – Barcelona (£642.8 million)
  • #7 – Arsenal (£605.7 million)
  • #8 – Liverpool (£604.2 million)
  • #9 – Tottenham (£519.9 million)
  • #10 – Chelsea (£461.1 million)

For anyone that doubts the connection between money-making and success in football, show them this list. Three of the top five highest-revenue generating clubs in Europe won their respective domestic leagues in 2023/24 – Real Madrid, Manchester City and PSG, while six of the eight Champions League quarter-finalists also feature in the top ten of the rich list.

There are anomalies, of course, not least Manchester United, who continue to be unable to convert their global commercial appeal into anything approaching consistent quality on the pitch. And the 2023/24 German Bundesliga success of Bayer Leverkusen, at the expense of Bayern Munich, was a rare shot across the bow from those who believe that the less-rich can still find success in modern football.

The Premier League

Premier League logoThe Premier League offers up six of the top ten most revenue-generating clubs in world football, as well as teams ranked 15th (Newcastle United), 17th (West Ham) and 18th (Aston Villa). Deloitte’s Theo Ajadi says,

The Premier League still dominates the money league table and that is driven by such a big gap between the media rights it is able to generate.

It is the most-watched league of the big five leagues and that has also given that spending to perform well in Europe.

So is there an argument to say that the EPL representatives are failing, relative to their income, in the Champions League, with just three English winners in the past ten years?

Does Money Buy Success in Football?

Football stadium money

Although it’s not an exact science, Deloitte’s money league table clearly displays a causal link between annual revenue and trophies won. The 2023/24 victors were Real Madrid, as we know, in a season in which they also enjoyed plenty of success out on the pitch: they won the double of La Liga and Champions League.

Real also led the way in Deloitte’s revenue league in 2022/23. They won the FIFA Club World Cup, UEFA Super Cup and Copa del Rey, but finished second in La Liga and were dumped out of the Champions League in the semi-finals. That goes down as a campaign of failure then, based on the club’s high standards, and you wonder if the true rewards of having a strong year financially are reaped the season afterwards… when a club can be a little more frivolous in their transfer spending.

In 2021/22, the club with the most revenue generated was Manchester City. In that season, they won the Premier League title – but that was their only piece of silverware. The following campaign, meanwhile, they won the EPL, the Champions League AND the FA Cup in a remarkable treble, adding weight to the notion that it’s the season after topping Deloitte’s standings that really counts.

City also led the way in 2020/21, while in 2019/20 it was Barcelona that generated more revenue than any other club – a season in which they failed to win a single trophy, before winning the Copa del Rey a year later. There’s clear evidence between revenue and trophies in football… expect the likes of Real Madrid and even Manchester City, their 2024/25 woes aside, to continue their spell of domination in the years ahead.