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FC Barcelona Posts Highest Revenue In The History Of Sports At $770 Million

Spanish soccer giant FC Barcelona reported record revenue for the 2015-16 season of €679 million or $750 million. Barcelona recently ranked fourth overall in Forbes annual look at the world’s most valuable sports franchises at $3.64 billion. Only the Dallas Cowboys ($4.2 billion), New York Yankees ($3.7 billion) and Man United ($3.69 billion) are worth more. The tally puts the world’s third most valuable sports franchise at $3.55 billion on pace to meet its target revenue of €1 billion by 2021.
Barcelona is set to begin a $650 million renovation of its Camp Nou stadium next year. The project will modernize the stadium, expand capacity to 105,000 seats and further generate revenue. In addition to the stadium renovation, sponsorships are key to Barcelona’s future revenue growth. Marketing represented the club’s biggest revenue stream at 37% in 2014-15. It is about to soar thanks to a new kit deal with Nike NKE -0.17% inked this year. The new deal is expected to bring in as much as $170 million a year. Barca is also up for a new jersey sponsorship after its three-year deal with Qatar Airways expired. The two parties reached a one-year extension for the 2016-17 season, but as many as a dozen other companies are interested in buying one of the most valuable pieces of real estate in sports.
Barcelona allocated 66% of its expenditures for “payment of salaries to athletes.” No player cost more than the five-time player of the year Lionel Messi, who earned more than $50 million in salary and bonuses from Barça and ranked as the second highest-paid soccer player in the world behind Cristiano Ronaldo. Messi signed a three-year contract extension to remain at Camp Nou through 2021.

The renovation project will modernize the stadium and expand capacity to 105,000 seats. It is expected to cost in the neighborhood of $650 million. Barcelona’s $750 million in revenue includes revenue from all FC Barcelona sporting divisions, including soccer, basketball, handball and field hockey, but the soccer accounts for roughly 90% of the overall business. 



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