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Real Madrid sets record for highest revenue in history of team sports

The most valuable franchise in history has set a record for the highest revenue in team sports.

(Credit: Bob Stanton-USA TODAY Sports)
(Credit: Bob Stanton-USA TODAY Sports)

La Liga soccer powerhouse Real Madrid showed record revenues for the 2013-14 fiscal year of $797 million, an increase of 10.9 percent from the previous year. This marks the highest revenue in the history of professional team sports.

Real Madrid’s closest competitor is La Liga archrival FC Barcelona, with a revenue of $710 million, followed by the New York Yankees at $620 million and the Dallas Cowboys at $560 million.

At $3.4 billion, Real Madrid is also the world’s most valuable sports franchise for the 10th straight year, according to Forbes magazine.

(AP Photo/Andres Kudacki)
(AP Photo/Andres Kudacki)

Two endorsement deals provide 10 percent of Real Madrid’s revenue. Real Madrid’s jersey deal with Adidas was the most expensive in the world at $49 million a year before Manchester United signed its own Adidas contract worth $130 million a year this July. Real also has a jersey sponsorship deal with Emirates that pays $39 million annually.

Unlike in the U.S., soccer teams in Europe make money based on how well they play in continental tournaments. Real Madrid won its 10th Champions League title this year after a 12-year drought, resulting in a $78 million payout for the club. The club’s TV rights added another $177 million to their revenue.

Real Madrid is no stranger to world records. In September 2013, it broke the record for most expensive transfer in soccer history by signing Gareth Bale for $132.9 million. This broke the club’s own 2009 record, when it signed Cristiano Ronaldo for $101.1 million. Just last month, it fielded the most expensive lineup in soccer history in a victory over Sevilla, with 11 players costing the club an astonishing $460 million in transfer fees. It seems breaking fiscal budget records has become synonymous with Real Madrid, and there are no signs of this changing anytime soon.

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