Real Madrid has become the first sports team across the world to generate €400m (£363m, US$544m) in revenue, according to new research by business advisory firm Deloitte.

The group's Football Money League has revealed that fellow Spanish club Barcelona has ousted England's Manchester United as the second biggest club in the world as a result of its on-field success. However, English clubs continue to dominate the list of the top 20 revenue-generating clubs across the world, with Arsenal moving up to fifth. Chelsea (6th) and Liverpool (7th) have also made the Top 10.

Other English clubs included in the Football Money League are Tottenham Hotspur (15th) and new-entrant Manchester City (19th), while Newcastle United is listed in 20th despite its relegation from the Premier League. According to Deloitte's research, the majority of football clubs saw revenue increase during the 2008-09 season as the industry remained resilient in spite of the recession. However, English clubs suffered due to the weak pound.

Alan Switzer, director in Deloitte's sports business group, said: "Real Madrid and FC Barcelona have created a clear revenue gap between themselves and their European competitors, and look set to contest the top two positions in the Money League for the foreseeable future, particularly if the Pound doesn't strengthen against the Euro. "However, new improved Premier League broadcast contracts, and in particular strong growth in the value of the league's international rights, will provide a revenue boost to English clubs from 2010/11."