Newcastle Ranked 20th Most Valuable Football Club In The World

Good news for Newcastle fans and Mike Ashley today, after Forbes magazine released their annual ranking of the world’s richest football clubs.

Whereas Deloitte Touch every February bring out their ranking of the teams based on annual revenues, and Newcastle were recently ranked 20th, this is based on Forbes’ estimate of how much money the club would cost, if somebody wanted to buy the club.

It’s just a coincidence that Newcastle were ranked 20th in both lists, but of course annual revenues is often a good measure as to how much a company is worth (plus what their profits are).

This new list is basically the perceived value of the football club.

Newcastle are listed as 20th, just one spot behind Manchester City, and are said to cost $198M.

As today’s exchange rate of 1.53, that translates to about £129M.

But Newcastle will be worth a lot more than that in one year’s time, especially if we do reasonably well in the Premiership next season.

Newcastle are the 7th England team ranked, with Manchester United being number one at $1.835B (£1.19B) and Real Madrid second at $1.323B ( £865M), and Arsenal 3rd at $1.181B (£772M).

The English teams above Newcastle are Manchester United, Arsenal, Liverpool, Chelsea, Tottenham Hotspur and Manchester City, in that order.

That’s strange, because apart from City and Spurs, those other sides actually win trophies every year.

Well, we suppose that’s what we did this season, winning the English second division.

It also shows the draw the Tyneside club has, when they easily out-rank 14 English clubs who are in the league above them, not to mention all the European clubs that Newcastle are worth much more than.

Newcastle’s debt is listed at just 8% of their value which is good.

Note that Manchester United, Real Madrid, Arsenal and Liverpool have debts of  56%, 54%, 41% and 47% of thier value.

Here’s the list of this year’s top 20 football clubs in terms of value.

And here’s the Forbes article that ranked the teams, and since Forbes is American they refer to the game as soccer, although nobody else does.

And this is what the Forbes article says about Newcastle United:

In Newcastle, owner Michael Ashley has been trying to get out but has been unable to find a buyer.

Newcastle was relegated from the Premiership and is now playing in the second-flight Coca-Cola  Football League Championship, though it will be back in the top-flight for the 2010-11 season.

As a result, the club will likely see revenue decline this year much more than the 14% drop it experienced last year. The club’s $198 million valuation marks the first time that the 20th ranked team on our list has been worth less than $200 million since 2007.

So the next time people ask what makes Newcastle United a massive club, point them to this list. 😀

Comments welcome.

11 comments so far

  • Dukis22lt

    Apr 23, 2010 at 10:23 AM

    Comment #1

    will do ed =D

  • PapaToon

    Apr 23, 2010 at 10:29 AM

    Comment #2

    We might be just behind the trophy winning PL teams but there is a massive gulf between valuations after liverpool. Our value will not increas that significantly if are club that just avoids relegation next season. Money is there if you stay in the other competitions for longer i.e. FA n Carling cup, Europa n Champions league due to payments for on air games, extra home games and sponsors. We will only have FA n Carling cup but can still do well in these comps look at portsmouth.

  • Edd Case

    Apr 23, 2010 at 11:55 AM

    Comment #3

    How come Barcelona are not the richest overall?

    The have 0 as a percentage of value!!!
    And the second highest revenue…strange.

  • G

    Apr 23, 2010 at 12:25 PM

    Comment #4

    Are Barcelona not ‘strictly speaking’ fan owned, and therefore they do not have shareholders, but a committee of representative fans so there are no individual owners, and no shareholders? Sure I read that somewhere, of course I might have dreamed it?

  • cupiddstunt

    Apr 23, 2010 at 12:27 PM

    Comment #5

    It’s interesting to see we have an operating income of minus $49 mil and yet we still have tits that come on this blog and repeatedly bang on about MA making money from transfers and such.

    Looking at the figures the club has been working in deficit since 2007/8 or thereabouts so how is the man suppose to be creaming off the profits?

  • Edd Case

    Apr 23, 2010 at 12:31 PM

    Comment #6

    G – Yeah, Barca are fan owned, but they still have a commercial value.

    To be honest, not sure about this Forbes list.

    How can Man Utd be top with 7oomillion in debt?

    Oh, and I fubared up in my last post, I meant to type Barca have 0% debt against their value.

  • Otter

    Apr 23, 2010 at 3:41 PM

    Comment #7

    “since Forbes is American they refer to the game as soccer, although nobody else does just like the Australians.”

    Fixed that for you.

  • chuck

    Apr 23, 2010 at 7:17 PM

    Comment #8

    If in fact the above is the case (we are the twentieth richest club) why does our spending not reflect that.
    Mike Ashley seems to have converted everyone into penny pinchers, who sympathize with his parsimonius approach.
    IMO he will spend a minimum in order to avoid the drop first season back , basically the same policy he used in the winter window to ensure promotion.
    Still believe he wants out and would accept any reasonable offer, the club would probably be a bargain @ under one hundreed and fifty
    Anyway dont expect too much in the way of new arrivals.
    Question is where does the hundred million tax free loan come into things.

  • Sgt. Heagerty

    Apr 23, 2010 at 11:53 PM

    Comment #9

    Too bad it wasn’t a list of the top 10,ooo clubs. Then Scumderland might have made the list….hahahahahahahahaha

  • VanCanToonFan

    Apr 24, 2010 at 3:25 AM

    Comment #10

    This Forbes list is total crap. How can NUFC be valued at £129m when Ashley couldn’t find a buyer at £80m just a few short months ago?

  • toonsy

    Apr 24, 2010 at 3:47 AM

    Comment #11

    Yawn, again everyone, remember these figures are based on last year when we were a PL club. Since these figures TV money has gone down 80%, gates 20%, commercial 50%.


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