Despite a string of disappointing seasons and significant financial challenges, Manchester United has been named the world’s second most valuable football club, trailing only Spanish giants Real Madrid. This is according to Forbes’ latest annual list of the world’s most valuable football teams, released today.
The iconic English club is valued at an astonishing $6.6 billion (£4.9 billion), with a reported revenue of $834 million (£620 million) for the 2023-24 season. This valuation represents a 1% increase, even as the Red Devils finished a dismal eighth in the Premier League in 23-24, failing to qualify for the UEFA Champions League. Their struggles continued into the 24-25 season, where they finished 15th in the Premier League and lost the UEFA Europa League final, consequently missing out on European football next season.
This robust valuation comes despite reported debts of £1 billion and losses of £113.2 million in 23-24. Analysts attribute United’s enduring financial strength to its powerful global brand and immense fanbase, cultivated during two decades of dominance in the 1990s and 2000s.
Real Madrid tops the Forbes list with a value of $6.75 billion and an impressive revenue of $1.129 billion. Barcelona occupies the third spot.
Other notable valuations include Liverpool, ranked fourth with a value of $5.4 billion and revenue of $773 million in 23-24. Manchester City, despite boasting the second-largest revenue in 23-24 at $901 million, comes in fifth in terms of total value at $5.3 billion, marking a 4% rise from the previous year.
Sir Jim Ratcliffe, a minority owner since last year, has initiated cost-saving measures at Manchester United, including the redundancy of approximately 250 staff last summer, saving an estimated £8m-£10m. A further 200 staff could face job losses this summer. In March, the club also unveiled ambitious plans for a new £2 billion stadium on the existing Old Trafford site.
Forbes’ valuations are based on enterprise values (equity plus net debt), considering historical transactions and the future economics of each league and team. Revenue and operating income figures reflect the 2023-24 campaign, and team values encompass the economics of each team’s stadium, excluding the real estate value itself. Debt is measured as interest-bearing borrowings due in over one year, including stadium debt.
