PSG beats Manchester City as the world’s financially most powerful club, while Manchester United places EIGHT places in a new rankings and Liverpool surpasses for the first time
- PSG tops the annual Soccerex Football Finance 100 report
- They’ve made Manchester City a leap forward with both directions ahead of chasing the pack
- The report regrets reading Manchester United, which is in 16th place
- Tottenham is fourth on the list with Bayern Munich third and Real Madrid fifth
PSG has overtaken Manchester City as the most financially powerful club in world football, according to the annual Soccerex Football Finance 100 report.
But the report regrets reading Manchester United, which has dropped eight places for the first time, from the top 10 and under Liverpool.
Bayern Munich is third and Real Madrid fifth, while Tottenham is a surprising name that comes fourth on the list.
PSG has overtaken Manchester City as the most financially powerful club in the world
The city is in second place in the list, according to the annual Soccerex Football Finance 100 report
The clubs are assessed on the basis of a score for the football financing index, which is based on the value of the current team, tangible assets, available financing in their accounts and potential investment by the owner and net debt.
The analysis is based on balance sheets and annual reports published by clubs, as well as sources from UEFA, The Financial Times, Bloomberg, Yahoo Finance, Forbes, Transfer Market and Hooevers. This edition analyzes the 2017-18 financial year.
The report arranges the financial potential of each club and develops a methodology that looks at the performance of clubs in the five most important variables, weighted against the percentage of that variable of the cumulative total, thereby obtaining an FFI score.
PSG is at the top of the list with an FFI score of 5,318. She and the second-placed Manchester City (5,197) are far ahead of the chasing peloton.
FOOTBALL FINANCING – TOP 25
2. Manchester City
3. Bayern Munich
5. Real Madrid
10. Borussia Dortmund
11. Atletico Madrid
13. RB Leipzig
15. Guangzhou Evergrande
16. Manchester United
18. Los Angeles FC
19. Bayer Leverkusen
22. LA Galaxy
23. Zenit Saint Petersburg
24. Nagoya Grampus
25. Inter Milan
The study said PSG had reduced their debt by £ 58 million in the past year, while City’s debts had increased by more than £ 75 million.
The increase in PSG is due to an improved level of financial management, which has increased their cash reserves and reduced debt levels, both through the sale of players and the support of their Qatari owners.
Their annual increase in cash reserves was five times that of City.
Bayern Munich is in third place with a score of 3,888 in a top 10 dominated by the Premier League. Spurs (3,441), Arsenal (sixth, 3,150), Chelsea (seventh, 2,893) and Liverpool (eighth, 2,616) are all in that top class.
Real Madrid (3,336), Juventus (ninth, 2,195) and Borussia Dortmund (10th, 2,154) form the rest.
HOW DOES IT WORK?
The Football Finance Index of each club is calculated via five variables
A) Play assets
B) Tangible assets
C) Cash in the bank
D) Potential investment from the owner
E) Net debt
A FFI Score + B FFI Score + C FFI Score + D FFI Score – E FFI Score = total FFI score
Manchester United dropped eight places from last year to 16th in the report, mainly due to the squadron depreciation and an increase in cash debt.
The elite parties in Europe accounted for 80 percent of the top 30, but nearly half of those clubs are owned by non-European entities, including organizations and individuals from the Middle East, North America and Southeast Asia, according to the report.
“This year’s report provides a positive picture of the collective financial health of football, but it also highlights the growing imbalance between the power of the modern European elite, with some of the game’s heritage brands at risk of lagging behind,” Philip Gegan. general manager of Soccerex, said.
“Despite the dominance of Europe, football is a global game, with investments from emerging markets in football strongly supporting its continued growth.”
The Premier League is represented by 18 clubs in the top 100, while Major League Soccer (MLS) was the second best with 17.