Saturday, 11 October 2014

Manchester United are now the most valuable team in sports world, according to the Wall Street

Manchester United are now the most valuable team in sports world, according to the Wall Street

Manchester United have now been ranked as the world’s most valuable team in sport industry after signing a record-breaking $130 million a year deal with German sportswear giant, Adidas. After the announcement of the deal, Manchester United and Adidas’s shares rose by 5% and 2.5% respectively.
Old Trafford - Homeground of World's most valuable team, Manchester United. Photograph by: Bernt Rostad. Rights reserved.
Old Trafford – Homeground of World’s most valuable team, Manchester United.
Photograph by: Bernt Rostad. Rights reserved.
After spending 13 seasons with Nike, both clients have parted their ways and German sportswear giants Adidas overtook the US sportswear powerhouse, and rival, Nike. Nike will be a part of Manchester United for 2014-15 season. Adidas will start working with Manchester United from 2015-16 season for the next decade.
Manchester United is now valued at $3.6 billion by the Wall Street. Mathematically,  Before Manchester United signed a mammoth deal with Adidas, in April Forbes ranked Real Madrid on top with $3.44 billion, Barcelona on 2nd at $3.22 billion and Manchester United on third at $2.81 billion.
Although it is worrying for a club of Manchester United’ stature to miss out on a lucrative Champions League football, after finishing 7th in the Premier League in 2013-14 season, but the club has now both richest uniform and shirt deals in sport industry which makes it of less worrying in terms of finances.
In Spain, Real Madrid and Barcelona have enjoyed $182 million each in terms of TV rights but it is likely to change as Spanish La Liga is trying to give equal television deals instead of individual clubs signing their deals which is likely to affect the revenues of both Spanish giants. Real Madrid will not be able to match Manchester United anytime soon, as they have an agreement with Adidas that runs out in 2020 and an agreement with Emirates which will last till 2017-18 season.

Top Kit Deals

 
Team
Sponsor
Annual Revenue
Manchester UnitedAdidas$130 million
ArsenalPuma$51 million
Real MadridAdidas$41 million
LiverpoolWarrior$39 million
BarcelonaNike$38 million
Bayern MunichAdidas$38 million
Manchester United’s current deal with Nike is $37 million till 2014-15 season.

Top Shirt Deals

Team
Sponsor
Annual Revenue
Manchester UnitedChevrolet$80 million
BarcelonaQatar Airways$45 million
Bayern MunichDeutsche Telekom$40 million
Real MadridEmirates$39 million
LiverpoolStandard Chartered$31 million
SunderlandInvest in Africa$31 million

As ranked by Forbes, apart from football, the most valuable teams are New York Yankees worth $2.5 billion and NFL’s Dallas Cowboys $2.3 billion.
After having a dismal season, Manchester United fans have something to cheer about that their club is on it’s way of getting debt free and it’s self created revenue will make it stand strong for many years to come, they can completely avoid having their club in hands of some Arabian or Russian sugardaddy.

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