Neymar effect: Barcelona first sports club to break $1 billion revenue mark

Spain's famous football club FC Barcelona has become the first sports club to post an annual revenue exceeding $1 billion.

The La Liga champions, who presented their annual accounts, showed earnings of $1.05 billion for the 2017-18 fiscal year, breaking its own income record for the fifth successive year and posting a profit for the eighth consecutive year.

Manchester United, considered as the world's most valuable soccer team, recorded record revenue of $794 million and operating income of $238 million in the fiscal year ending June, 2018. 

The rise in revenue was driven by increased income from television rights from the Champions League and the August 2017 sale of Brazilian forward Neymar to Paris St Germain for a record 222 million euros ($257 million) transfer fee.

"The extraordinary income from payment of Neymar Jr's buyout clause has been compensated in next year's budget through improved commercial and sponsorship revenue, media rights, exploitation of the stadium and transfer of players,” the club said in a statement.

"This is the first time that revenue has surpassed $1bn, a huge step up from 2016/17," it added. 

The club also announced a record budget of $1.105 billion for this season, which needs to be approved at a general assembly on October 20.

The club added that its debt amounted to $181.3 million as of June 30.