At €3.2bn, Man Utd tops Real Madrid and Barca as Europe’s most valuable club

money flying

By Paul Nicholson

May 23 – Manchester United is the most valuable club in Europe at €3.255 billion, an increase of 5% on last year. They are followed by Real Madrid who dropped in value by 2% and dipped below the €3 billion mark to €2.92 billion, and Barcelona at €2.735 billion.

The data comes from KPMG’s latest Football Club’s Enterprise Value ranking report that examines clubs across Europe. Enterprise Value.

What the report finds is a football market in generally very good health despite €100 million+ transfer fees. KPMG finds a combined Enterprise Value of €32.5 billion across Europe’s 32 leading clubs – a growth of 9% in comparison to last season.

KPMG also point to a staggering 17-fold increase in profits before taxes.

English clubs, because of their significantly higher broadcasting revenues, hold six of the top 10 spots in the ranking and nine spots in the top 20. Spurs rank 10th, one position above French giants PSG and one behind Juventus.

AC Milan – currently facing sanction under UEFA’s FFP rules – are ranked 18th with a €514 million value, two spots ahead of significantly better managed city rival Inter Milan.

12 clubs are valued at more than €1 billion and 19 clubs at more than €500 million. The gap between Man Utd in top spot and Arsenal in sixth is over €1 billion, emphasising that even within the biggest clubs a major value gap has opened up between the top three and the rest.

KPMG base their  analysis  on the  latest  publicly  available  financial  statements, using their own algorithm which is  based  on  the  “Revenue  Multiple approach,  where  each  club’s  revenues  are  multiplied  by  a  specific  multiple  which  takes  five  metrics  into  account  —  each  one  with  a  specific  weight.”

For the first time social media performance was used as one of the five key drivers the algorithm with the report authors saying there “is a clear  correlation  between  a  club’s  social  media  presence,  on-pitch  success,  brand  value  and  ultimately  EV.”

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