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Spanish Liga

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TV boosts football club values by €3bn

The combined worth of European football's leading clubs grew by about €3bn over the past year, boosted by the escalating value of broadcasting deals.   According to KPMG, the combined enterprise value of Europe's 32 richest sides was close to €30bn in 2016, a rise of 14 per cent from the previous year.

The list is dominated by Premier League clubs and is topped by Manchester United, which became the first club to be valued at more than €3bn.   Six other English clubs are among the 10 most valuable in Europe.

The financial rewards of the Champions League

Juventus will earn €115m if they win the Champions League (€98m up to now) while Real Madrid will earn €82m (€67m up to now).   Barcelona have earned €59m. These figures come from the author of the Swiss Ramble blog.

In the Premier League, Leicester City earned €78m through their progress to the quarter finals.  Arsenal earned €62m, indicating how much they stand to lose if they do not qualify this year.  Manchester City brought in €48m and Tottenham Hotspur €42m.

The rush to China

Barcelona is the latest European football club to invest in China on the back of President Xi Jinping's plans for a football revolution.  They have opened a €4m complex featuring a football school, Barcelona shop and fan zone on the island of Hainan.  They believe that revenues from China will be critical to Barcelona's target of generating €1bn of revenue by 2021, up from €679m in the 2015/16 season.

Big spending does not always guarantee success

Using a KMPG database, the Financial Times has analysed the accounts of 69 clubs over four seasons. The results reveal that big spending does not always guarantee success.

Premiership clubs make profit in transfer window

Premier League clubs made a net profit of £4m in the transfer window compared with a loss of £109m last year, according to figures from the Premier League. This January's transfer window saw the biggest spend ever of £237m, compared with £178m last year. Sales amounted to £241m.

According to figures from Deloitte Sports Business, the gross spend by Premier League clubs in the 2016/17 season totals £1.4 billion, surpassing the previous record of £1 billion by more than a third.

Global transfers hit record

According to Fifa's Transfer Matching System (TMS), the total spend on transfer fees worldwide was $4.8bn in 2016, a 14.3 per cent increase compared with the previous year and well above inflation.

Since 2010, all clubs are required to record transfer deals through the TMS.  14,951 deals were concluded in 2016, the highest number ever, and about a thousand more than the previous year.

United top money league

The latest edition of the Deloitte Money League has appeared.  Aggregate revenue for the top 20 Money League clubs rose 12% to €7.4 billion (£5.5 billion) in 2015/16, a new record, with three clubs breaking the €600m barrier.   The infographic below shows the evolution of the Money League over the last twenty years.

Super club status a mixed blessing for City

Manchester City have been named as one of nine European super clubs by Uefa.  While the recognition is welcome, it could store up problems for the future.   Uefa may decide to target these clubs with new financial fair play (FFP) measures.  

Spending caps hit new Messi deal

La Liga spending caps are constraining Barcelona's ability to offer Lionel Messi a new contract.   Not unreasonably, La Liga requires clubs to spend no more than 70 per cent of their income on wages.

Barcelona have the highest wages in Spain and the second highest in the world after Manchester United. One way forward would be to try and boost revenues.

How much is Ronaldo worth?

Unsurprisingly, 2016 Ballon d'Or winner Cristiano Ronaldo is worth quite a lot of money.   He had declared income of €225m in 2015 with €2m in 22 different Swiss bank accounts.   The bulk of his income was earned outside Spain.   He is battling accusations of tax evasion which he emphatically denies.