Manchester United had previous held the top spot every year since the list was first compiled in 2004, however its value according to Forbes of $3.17 billion has fallen behind that of the Spanish giants which is now totalled at $3.3 billion.
"Real Madrid has been consistently delivering the highest revenues of any soccer team in the world, despite an intense economic meltdown in Spain," said Forbes. "With superstars like Cristiano Ronaldo on the pitch, and coach Jose Mourinho on the bench, Real Madrid has thrived under the leadership of billionaire president Florentino Perez."
Forbes compiles its figures by looking at a club’s various revenue streams, most notable the television money it earns and ticket, merchandise and concessions sales.
Third place in the list went to Barcelona, whose value was calculated at $2.6 billion, followed by Arsenal and Bayern Munich was values of $1.33 billion and $1.31 billion respectively. Rounding out the top ten are AC Milan, Chelsea, Juventus, Manchester City and Liverpool.