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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