Manchester United is Most Valuable Sports Team

Despite losing the Premier League title to City rivals last season, Manchester United still lay claims of another title, though the world’s most valuable sports team. Forbes estimates Manchester United is now worth $2.23 billion, 19% more than No. 2 Real Madrid, worth $1.88 billion.

Below are the ratings of sports teams that occupy the top ten spot as released by Forbes.

#1 Manchester United

Value: $2.23 billion
Owner: Glazer family
The Red Devils are the world's most valuable sports team and have a long tradition of great play on the pitch. Manchester United has captured a record 19 English Premiership titles and claims to have 659 million fans worldwide. Next up for the Red Devils: an IPO on the New York Stock Exchange to reduce debt from Malcolm Glazer's purchase of the club in 2005.

#2 Real Madrid

Value: $1.88 billion
Owner: Club members
Real Madrid had the highest revenues of any soccer team during the 2010-11 season and was the most profitable team in all of sports during 2011, with operating income of $214 million. Club members have owned and operated the team since it was founded in 1902. Real won its record 32nd La Liga title in 2012, led by its star winger Cristiano Ronaldo (above, center).

#3 New York Yankees

Value: $1.85 billion
Owner: Steinbrenner family
The Yankees are just part of a money making machine that also includes the YES Network and Legends Hospitality. YES, the team's 34%-owned regional sports channel, is the most profitable RSN in the country with operating income of more than $200 million. Legends, the stadium management and concessions company owned by the Yankees, Dallas Cowboys and Goldman Sachs, signed a deal last year to sell season tickets at the San Francisco's 49ers new stadium. The enterprise value for the Yankees, YES and Legends is estimated to be $5.5 billion.

#4 Dallas Cowboys

Value: $1.85 billion
Owner: Jerry Jones
Cowboys' owner Jerry Jones is a master salesman and has attracted the NBA All-Star game, the Super Bowl, a Manny Pacquiao fight, soccer matches, concerts and more to Cowboys Stadium since the $1.2 billion venue opened in 2009. It will host the 2014 NCAA Men's Final Four as well. The stadium can hold 110,000 people, including standing room. One thing Jones has not been able to sell is naming rights to the building, which could fetch $15 million annually.

#5 Washington Redskins

Value: $1.56 billion
Owner: Daniel Snyder
The Redskins have made the playoffs only three times since Dan Snyder bought the team in 1999. That hasn't stopped fans from flocking to FedEx Field and making the Redskins the NFL's most profitable team in recent years. The 'Skins paid a king's ransom in April of three first round draft picks and a second round choice in a trade with the St. Louis Rams for the right to select Robert Griffin III (#10 above) with the second overall pick. Griffin won the 2011 Heisman Trophy while at Baylor.

#6 Los Angeles Dodgers

Value: $1.4 billion
Owner: Guggenheim Baseball
Frank McCourt sold the Dodgers in April through a bankruptcy court-led auction to Guggenheim Baseball for $2 billion. The deal included an additional $150 million to create a joint venture with McCourt on the parking lots and land around Dodger Stadium. The new ownership group includes Los Angeles Lakers' great Magic Johnson, former president of the Atlanta Braves and Washington Nationals Stan Kasten and film producer Peter Guber. Chicago financial services firm Guggenheim Partners financed most of the deal. The new group paid a record price for the franchise based on an impending new local TV deal that is expected to be worth more than $3.5 billion in cash and equity.

#7 New England Patriots

Value: $1.4 billion
Owner: Robert Kraft
The Patriots are one of the NFL's best-run teams on and off the field. The Patriots have sold out every game at Gillette Stadium since it opened in 2002 and made the playoffs eight of the past nine years. Quarterback Tom Brady (above) is just the second quarterback, after John Elway, to lead his team to the Super Bowl five times. Brady's last trip to the Super Bowl ended in disappointment when the Pats lost to the New York Giants for the second time in five seasons in the big game.

#8  FC Barcelona

Value: $1.31 billion
Owner: Club members
Barcelona has won two UEFA Champions League titles over the past four seasons, riding the golden feet of Lionel Messi (above). Barca's home stadium, Camp Nou, has the biggest seating capacity of top European teams at 99,400. The team's broadcasting revenue of $266 million was tops among all soccer teams in 2011.

#9 New York Giants

Value: $1.3 billion
Owners: John Mara, Steven Tisch
The Giants celebrated their second Super Bowl title in five seasons in February, led by MVP Eli Manning (above). MetLife acquired naming rights to the New Meadowlands Stadium last year, filling a glaring hole in the stadium's financial picture from when it opened in 2010. MetLife was paying $7 million annually as a cornerstone partner, but the naming-rights deal is expected to cost more than $400 million over 25 years. It would represent the biggest naming-rights deal for a current NFL stadium (Farmers Insurance has pledged $23 million per year if a new stadium is built in Los Angeles). The stadium, home to both the Giants and Jets, is scheduled to host the 2014 Super Bowl.

#10 Arsenal FC

Value: $1.29 billion
Owner: Stan Kroenke
Arsenal has won the second-most FA Cups (10), just one fewer than Manchester United. Match day revenue of $150 million in 2011 was fourth highest among soccer teams.The Gunners' commercial revenue was $74 million in 2011, but got a boost last season due to new sponsorship agreements with brewer Carlsberg and Betsson, the gaming company.

REPORT ACCORDING TO FORBES

Meanwhile, Manchester United fans will once again get a chance to own a piece of the iconic club as the Glazer family filed plans this month for an initial public offering on the New York Stock Exchange. The Glazers took the club private in 2005 in a leveraged buyout worth $1.47 billion. (The team traded on the London Stock Exchange before then.)

Don’t expect to be picking the next manager if you buy shares. The Glazers intend to keep control of the club through a dual-class share structure, where the Glazers’ shares will be worth 10 votes apiece, while the public gets one vote for each share. Dual-class shares are unusual, but a number of high-profile companies, including Facebook, LinkedIn and The New York Times, use them to retain control at the top while they sell ownership stakes to the public. With the offering, the team can reduce its hefty debt load, which stood at $663 million as of March.

Manchester United has a host of lucrative sponsorships in place. Insurer Aon pays $31 million a year to put its name on the team’s jerseys in a deal that runs through 2014. Last year, DHL Express inked a four-year deal with the club worth a reported $62 million to sponsor Manchester United’s practice jerseys. It is the first case of a practice jersey sponsorship deal for soccer in the U.K. Nike manages the team’s merchandise sales and the agreement is worth a minimum of $39 million annually for Manchester United based on overall sales in a deal through 2015.

Soccer clubs hold the top two spots among the world’s most valuable franchises, but it is American football teams that dominate the rest of the top 50. All 32 NFL teams made the cut, led by the Dallas Cowboys, worth $1.85 billion, tied with the New York Yankees for third overall. The Cowboys are the kings of the NFL thanks to their $1.2 billion stadium, which generates more than $100 million annually from premium seating and nearly $60 million from sponsors like AT&T, Bank of America, Ford Motor and PepsiCo.

The future looks even brighter for NFL teams thanks to a new labor agreement, as well as a new round of TV contracts. The league and its players endured a four-month lockout last year, but no regular season games were lost. The new collective bargaining agreement ensures labor peace for 10 years and gives owners a bigger piece of the pie, as players settled for a salary cap based on 48% of total revenues versus roughly 54% in previous years.

The NFL inked extensions to its TV deals with CBS, ESPN, Fox and NBC last year. The nine-year deals (ESPN is for eight years) start with the 2014 season and are worth $5 billion a year collectively, a 62% bump on the prior contracts. The average NFL team is worth $1.04 billion.

Major League Baseball landed seven teams on the list (same as soccer), led by the Yankees. As Forbes pointed out in a cover story earlier this year, baseball is flush with TV money thanks to a boom among regional sports networks hungry for content. The Yankees’ YES Network, which is 34% owned by the team, is the most profitable RSN in the U.S. generating more than $200 million in operating income last year. The team is also a cash cow with $330 million in ticket revenue in 2011, including luxury suites. The Red Sox had the next highest gate at $190 million.

Basketball and Formula 1 both placed two teams among the 50 most valuable franchises. The Los Angeles Lakers jumped 13 spots and are now ranked No. 35 with a value of $900 million, up 40% from last year. As with baseball, revenue growth is tied to TV. The Lakers struck a deal with Time Warner Cable beginning with the 2012-13 season valued at an average of $200 million a year, compared to $35 million under their old agreement. Time Warner will show games on two regional sports channels, one in English and one in Spanish. The Lakers have by far the biggest audience on TV, averaging 258,000 households on Fox Sports West last year.

F1 powerhouse, Ferrari, ranks No. 15 with a value of $1.1 billion, up 3% from last year. Ferrari extended its $52 million-a-year sponsorship deal this year with Spanish bank Santander. This follows Ferrari’s blockbuster extension last year with sponsor Marlboro worth as much as $500 million over three years. McLaren’s value fell 2% this year to $800 million as main backer Vodafone is reviewing its sports sponsorship commitments. McLaren would be hard pressed to replace Vodafone at comparable levels. McLaren also faces the free agency of Lewis Hamilton, who is one of the most marketable drivers in the sport. Hamilton’s contract expires at the end of 2012.