The Political Economy of Football V2: Real Madrid and Arsenal Climb Up the Money Tree

The year 2025 has been a monumental one in the world of football finance, as Real Madrid continues to dominate the global money league, setting a record-breaking standard for both football clubs and the broader sports industry. For the second consecutive season, Real Madrid has retained its position at the top of the Money League table, surpassing €1 billion in revenue, a remarkable achievement in the world of professional football. The Spanish giants reported an astonishing €1,046 million (£899 million), a feat never before accomplished by any club. This significant milestone marks a considerable leap from the previous high of €84 million in 2018/19, held by Barcelona, which was dwarfed by Real Madrid’s massive €208 million gap over their closest rival this year.

While Real Madrid’s performance was exemplary, Manchester City, despite a less successful year on the pitch, retained second place in the rankings. The English side, still fresh from winning the Premier League, UEFA Super Cup, and FIFA Club World Cup, reported an impressive £721 million in revenue. These financial figures highlight not just on-field success but also the substantial off-field earnings that increasingly shape the trajectory of clubs in Europe’s top leagues.

Other clubs also made impressive strides, with Paris Saint-Germain (PSG) maintaining third place, amassing £693 million in revenue. Manchester United, with £663 million, and Bayern Munich with £658 million followed suit, showcasing the financial dominance of the European elite. Barcelona, despite facing challenges with their stadium redevelopment, held on to the fifth position, while Arsenal claimed the seventh spot, marking a significant leap from their 10th position in the previous year. Liverpool, once the powerhouse of the Premier League, saw a slight decline in revenue, as they fell to sixth place, narrowly missing out on the top five.

The financial landscape has seen a significant shift with more Premier League clubs making their presence felt at the top. The league now boasts an impressive nine representatives in the top 20, including Aston Villa and Lyon, who replaced Napoli and Eintracht Frankfurt. The presence of clubs like Arsenal, Tottenham, and Chelsea in the top 10 reflects the rising financial strength of English football. In total, six Premier League clubs now feature in the top 10, a testament to the financial might of English clubs driven by the superior TV rights deal in the country.

However, the financial disparities between the elite clubs and the others are stark. The revenue generation models are markedly different, with the top-tier clubs relying heavily on commercial ventures such as sponsorships, merchandise sales, and events. Real Madrid’s commercial revenue, for example, makes up a staggering 48% of their total earnings, a figure that reflects the club’s global appeal and branding prowess. On the other hand, clubs ranked 11-20, including the likes of Juventus, Barcelona, and Chelsea, rely far more heavily on broadcasting revenue, which has been the dominant source for the clubs trailing behind the financial giants at the top.

The revenue model for the leading clubs suggests a divergence that may only grow more pronounced in the coming years. While broadcasting income is slowing down, the top clubs have leveraged their brand power to generate greater income from commercial deals and matchday revenues. Real Madrid’s staggering £107 million increase in matchday revenue is a perfect example of how these clubs are capitalizing on their global fanbase. With higher attendances and expensive VIP seating options, Real Madrid has transformed their Santiago Bernabéu into not just a stadium but a cash-generating machine.

Arsenal, too, made notable progress in their financial growth, reporting an impressive £153 million increase, with a staggering 33% year-on-year growth. Much of this growth can be attributed to their return to the Champions League and their solid performance in the Premier League, where they finished as runners-up. The increase in matchday income, facilitated by a 5% price increase and the introduction of more women’s games at the Emirates, saw Arsenal’s revenue surge, making them the leader in matchday income in England for the first time in almost a decade.

While the top clubs saw tremendous growth, the other clubs in the Money League also demonstrated resilience and progress. Borussia Dortmund’s €77 million increase, Newcastle United’s €69 million, and Lyon’s €54 million boost are examples of clubs benefiting from sporting success and strategic decisions off the pitch. Aston Villa’s £49 million growth, fueled by their deep run in the Europa Conference League, and West Ham’s £38 million increase, owing to their Europa League quarter-final appearance, further highlight how financial performance is closely tied to on-field results.

In contrast, some clubs experienced significant financial setbacks, largely due to their failure to participate in European competitions. Juventus saw a £70 million drop in revenue, while Chelsea and Tottenham also reported losses of £43 million and £20 million, respectively. Barcelona, grappling with the challenges of stadium redevelopment, recorded a £42 million decline.

Despite the challenges, the overall growth in the Money League paints a picture of continued strength at the top of the football pyramid. The gap between the top clubs and the rest of the league is only set to grow wider as broadcasting rights slow and the top clubs continue to capitalize on their brand power. However, this financial strength also means that these elite clubs are increasingly less reliant on performance on the pitch to maintain their dominance. The success of clubs like Real Madrid and Arsenal highlights the growing importance of commercial deals and matchday revenues in shaping the financial future of football.

As the football world continues to evolve, it’s clear that the financial landscape of the game is increasingly dominated by a handful of elite clubs with the resources and global fanbases to generate massive income streams. The era of the super-club, fueled by both on-pitch success and off-pitch savvy, is here to stay, and the gap between the haves and have-nots in football’s financial hierarchy will only widen in the years to come.

Real Madrid’s continued dominance, alongside Arsenal’s impressive growth, serves as a testament to the evolving financial realities of football. While European giants continue to lead the charge, the financial success of clubs like Aston Villa and West Ham shows that there is room for growth, particularly for those with a clear vision and strategic off-field decisions.

As the money flows in, football fans will be left to wonder just how much further this financial arms race can go. Will the super-clubs continue to climb, or will the competitive balance of the game be disrupted by the unchecked power of money? Only time will tell, but one thing is certain: the political economy of football is more important than ever.