Real Madrid has overhauled Manchester United in Forbes' annual ranking as the most valuable football team in the world. It is the first time since Forbes began tracking the value of soccer teams, in 2004, that Manchester United has not topped the ranking. The value of Real has surged by 76 percent to $3.3 billion from a year ago. Thanks to rich sponsorship contracts and star players, Real Madrid's revenues have gone up by 62 percent over the past three years, delivering an average operating margin of 28 percent. Manchester United, controlled by the American Glazer family and listed on the New York Stock Exchange, also performed well, recording a 42 percent rise on the previous year, but this led to a value of $3.2 billion, less than its Spanish rival. In order to succeed in the ranking, teams must be able to both win on the field and turn victories into dollars. Forbes' team values are based on multiples of revenues that teams get from television, premium seating, media, licensing, merchandise and concessions. Real Madrid posted revenues of $650 million during the 2011-12 season and generated earnings before interest, tax, depreciation and amortization (Ebitda) and player trading, of $134 million, more than any other soccer team and second only, among all sports teams, to the Dallas Cowboys, which plays in the U.S. National Football League (NFL). Barcelona is worth $2.6 billion and occupies the third spot in the ranking, followed by Arsenal, valued at $1.33 billion, and Bayern Munich, valued at $1.31 billion. The top 20 football teams are worth an average of $968 million, 26 percent more than last year, and they posted an average Ebitda of $42 million for the 2011-12 season, $3 million less than the previous year, Forbes said.

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