Wednesday 11 May 2016 5:13 pm

Most valuable football teams: Arsenal, Chelsea and three other Premier League teams worth over £1bn according to new ranking

Five Premier League clubs are now worth over £500m according to a new ranking of the world's most valuable football teams from Forbes magazine.

Spanish giants Real Madrid have been named as the most valuable club in the world for the second successive year with an estimated worth of £2.5bn, closely followed by domestic rivals Barcelona at £2.5bn.

Yet the Premier League is the most commonly represented competition with eight clubs named in the most valuable 20.

Manchester United, named the third most valuable club in the world, are estimated to be worth £2.4bn — over £500m more than next nearest challenger Bayern Munich.

Read more: Leicester brand has grown more than any other club this season but Manchester United, Arsenal and Chelsea still top the list

Rank Club Forbes value Y-o-Y increase Revenue Income
1 Real Madrid $3.6bn 12% $694m $162m
2 Barcelona $3.5bn 12% $675m $108m
3 Manchester United $3.3bn 7% $625m $190m
4 Bayern Munich $2.7bn 14% $570m $60m
5 Arsenal $2bn 54% $524m $122m
6 Manchester City $1.9bn 40% $558m $131m
7 Chelsea $1.7bn 21% $505m $25m
8 Liverpool $1.5bn 58% $471m $115m
9 Juventus $1.3bn 55% $390m $81m
10 Tottenham $1bn 69% $310m $73m

Arsenal and Manchester City follow with valuations of £1.4bn and £1.3bn respectively, ahead of Chelsea and Liverpool at £1.2bn and £1.1bn.

Tottenham Hotspur are thought to be worth £700m, making them the 10th most valuable club in the world.

London rivals West Ham are placed 17th with an approximate value of £374m while relegation-threatened Newcastle are ranked 20th with a value of £264.5m.

Forbes’s list is one of a number to place a value football clubs, and has been criticised for under-estimating the worth of some teams and changing methodology.