way, it is worth understanding its results, beyond its record 107 official competition trophies in its 114 year history.
When I ask US sports fans, “What is the most valuable sports team in the world?” the most common answers are “the New York Yankees” or “the Dallas Cowboys.” When I tell them the answer is Real Madrid, most people are completely shocked. American-centric sports fans will be absolutely astonished by the data below.
Real Madrid is worth $3.44 billion according to Forbes’ World’s 50 Most Valuable Sports Teams in July 2015.13 They rank it the most valuable sports team, which surprises many Americans, but if one thinks about it, soccer is the most popular sport in the entire world. Soccer has 3.5 billion fans globally, while baseball, basketball, and American football’s fans combined do not equal the number of soccer enthusiasts.14 The 2012 Deloitte Football Money League reported that in 2010–11, European professional soccer teams generated a combined €17.5 billion ($23.7 billion) in revenues. In an article about ranking sports’ popularity in September 2011, the Economist reported that “This compares with the NFL’s $9 billion, MLB’s $7.2 billion, and the NBA’s $4.1 billion in 2011.”15
Regardless of the rankings of Forbes and others, recent sports industry transactions may suggest that Real Madrid is actually the most valuable team. MLB’s Los Angeles Dodgers was acquired for $2 billion, more than eight times its revenues in 2012. NBA’s Los Angeles Clippers was acquired for $2 billion, fifteen times revenues in 2014 (Forbes valued the team at $430 million the previous year). Real Madrid has larger revenues and profits than either team, a more differentiated global brand, and a larger global fan base in the world’s most popular sport. Real Madrid would also have a much wider potential buyer universe than an American sports team.16 Just using the Dodgers’ eight times revenues transaction multiple, Real Madrid would be worth over $5.7 billion. Of course, the value of the team in a sale transaction is very theoretical because Real Madrid is a not-for-profit organization with approximately 92,000 club members that “own” the club (this will be discussed in detail later).
The chart below from Forbes values Real Madrid at five times revenues (the same multiple of revenues as the sale of NBA’s Milwaukee Bucks in 2014, which really does not compare to Real Madrid).
Table 1.1: Ten Most Valuable Sports Teams 2015 by Forbes
Real Madrid has the most revenues, $675 million in 2014, of any sports team in the world according to Forbes.17 Great sports teams in major markets like the MLB’s Dodgers and NFL’s New York Giants don’t even make the top ten. NBA’s Los Angeles Lakers 2014 revenues were $293 million, less than half of Real Madrid’s. Real Madrid has been at the top of the Deloitte Football Money League for eleven straight years, including the 2014–15 season.
Table 1.2: Ten Highest Sports Teams Revenues 2014 by Forbes
The power of the Real Madrid brand goes well beyond soccer, Madrid, or Spain. Experts estimate that Real Madrid has approximately 450 million fans around the world—more than American football has in total. Perhaps the best evidence of the power of the brand and identity lies in the club’s social media following. In 2015, Real Madrid had a total of 200 million followers across all global social media platforms, including those in China. A truly global presence, Real Madrid had approximately 100 million Facebook fans and Twitter followers on social media in 2015. To put this into context, the American sports team with the highest social media following was the Los Angeles Lakers at around 25 million, which also reflects the global appeal of basketball. In contrast, the New York Yankees had about 10 million fans on social media, which did not make the top fifteen of the chart below.
Table 1.3: Fifteen Most Popular Sports Teams on Social Media 2015
According to BBDO Consulting, Real Madrid has the highest brand value among European soccer teams. As of 2007 this value of 1.063 billion ($1.45 billion) was based on current and future income and expert opinion. The ranking is based on research that determines brand value using current and future income flow and expert opinion. BBDO Consulting states that its approach went beyond depicting only financial performance—it also analyzed scientific behavioral values such as brand popularity, image, sympathy, and loyalty. Income was examined in great depth, right up to the levels of sponsor contracts, merchandising, and revenue from season tickets, etc. The behavioral scientific side of the valuation comes from a survey of around 400 international experts.
Table 1.4: Five Most Valuable Soccer Brands 2007 by BBDO Consulting
According to PR Marketing, Real Madrid has the highest average jersey sales per year in soccer from 2009–10 to 2013–14. This demonstrates the passion, loyalty, and number of Real Madrid fans around the world. Adidas is the uniform manufacturer for Real Madrid. Sponsorship is provided by the Dubai-based Emirates Airlines. Many people believe that Real Madrid’s jersey sales are driven by individual star players only. While it is undeniable that players’ fans drive a lot of jersey sales, I will present some evidence later that the club’s community values may have more to do with jersey sales than people expect.
Table 1.5: Soccer Jersey Sales 2009–10 to 2013–14 by PR Marketing
On the field, Real Madrid has won eleven Champions League titles since the tournament of the best teams from each European league was established in 1955. The next closest competitor in terms of wins is AC Milan, which has won the Champions League seven times. Three teams (Barcelona, Bayern Munich, and Liverpool) are tied at five wins each.
Real Madrid has won a record thirty-two Spanish La Liga titles. Barcelona, in second place, has won twenty-four. Whenever Real Madrid plays their archrival Barcelona, it is commonly referred to as El Clásico. Real Madrid leads the head-to-head results in competitive games with ninety-two wins to Barcelona’s ninety. Whenever Real Madrid plays their crosstown rival Atlético Madrid, it is commonly referred to as the El Derbi Madrileño (“The Madrid Derby”).18 Real Madrid leads the head-to-head results in competitive games with 107 wins to Atlético Madrid’s 53.
Table 1.6: European Champions League Titles
In 2015, UEFA released its ranking of the most successful teams in Champions League competition history. These rankings were based on three points for a win, one for a draw, and zero for a loss.
Table 1.7: Top Teams in European Cup History (2015)
Real
