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| Thursday 2nd December 1999 : Report underlines gulf between clubs |
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The latest football "rich list" was published today by Deloitte & Touche and FourFourTwo magazine, and once again it underlines the gulf between the 'haves' and the 'have nots' of football. Top of the list are, unsurprisingly, Manchester United with a turnover of £87.875m while Cambridge United languish in 89th place with a turnover of £900,000 in 1997/98. The table of 92 English clubs and ten Scottish clubs is reproduced below for your convenience, together with the accompanying report from PA News/Sporting Life. Manchester United have been confirmed as the richest club in the world for the second consecutive time - but could soon find themselves being overtaken by their main European rivals. United's massive turnover of £87.9million for the 1997-98 season safeguarded their position at the top of Deloitte & Touche's second annual global 'rich list'. Even though that figure - for a season in which they won nothing - was the same as the year before, they were still 20% ahead of nearest rivals Real Madrid, with Bayern Munich and Juventus in third and fourth places respectively. Indeed, the table is increasingly being dominated by British clubs with nine home clubs filling the top 20 places, an increase of three - Chelsea, Aston Villa and Leeds - on the inaugural report 12 months beforehand. Newcastle were in fifth spot, Chelsea in ninth - although if their successful travel company had been taken into account they would have finished second - Liverpool in 10th, Arsenal in 13th, Rangers in 16th, Aston Villa in 17th, Tottenham in 18th and Leeds in 20th. United are expected to increase their turnover in the next table to £111million for their Treble-winning season but even that may not be enough to fend off the challenge of the top clubs in Italy and Spain for much longer. Television revenues are massively increasing in those two countries for the leading clubs, who are able to negotiate lucrative individual deals with broadcasters. In England the Premier League share out the pot in a more even-handed fashion and even if changes take place to the format of their next TV deal it may not be enough to keep clubs like United ahead of their European rivals in financial terms. Gerry Boon, the partner in charge of the Deloitte & Touche football industry team, said: "Television income is having a huge impact on the fortunes of today's top clubs. Real Madrid have negotiated a massive deal for live match coverage to cover the seasons 2003 to 2008, which could see them challenging United for the number one spot in the future." Michael Hann, editor of FourFourTwo magazine, which co-produced the report, added: "It's not just in Spain, in Italy too the top three clubs have signed TV deals earning them around £35million a year from the current season onwards. Unless the structure of the Premier League TV deal changes in 2001, English clubs just won't be able to compete with that soon." United's TV revenue amounted to £16.2million in the 1997-98 season - 19% of total turnover - as the Premier League currently have a collective deal which has been protected by the courts. The next contract is set to raise revenues by at least one third, with a variety of terrestrial, cable and satellite broadcasters likely to be used. While clubs could also have more freedom to show their own highlights packages if not live games as well, it may still not be enough to keep United at the top of the rich list - with the ability that thereby gives them to pay higher transfer fees and wages. However, at least the current TV deal structure is raising the turnover of many English clubs rather than just a chosen few - as in Spain - and ensuring a relatively more competitive top division. But there is already a gulf between rich and poor clubs in the Premiership, let alone with the smaller Nationwide League teams, and the smallest turnover of a current top-flight club - Watford's at £3.9million - is just 4% of Manchester United's. Admittedly Watford were in the Second Division at the time but even Crystal Palace, who were relegated that year, only managed to raise double that - just 8% of United's turnover. And when United are contrasted with Colchester, who were bottom of the 94 clubs in the four English divisions and the Scottish Premier League for whom 97-98 turnover figures were available, the difference is stark - £87.9million compared to £717,000. © PA Sporting Life
HOW THE 102 DO How the 92 English league and 10 Scottish Premier League clubs rank in terms of wealth, according to Deloitte and Touche and Four Four Two survey (previous year in brackets). (*) indicates accompanying note. Club Turnover
1 (1) Manchester United
£87.875million
Notes © PA Sporting Life
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