Recently, the KPMG group revealed the ranking of the strongest financial valuations of European Football. Unsurprisingly, Manchester United dominates the hierarchy. To be more precise, it is the third year in the row that the KPMG audit firm tackles the difficult exercise to evaluate the football clubs.
Based on the multiples method applied to the turnover – the multiplier is defined for each club 5 specific criteria that are
- sporting potential
- popularity in social networks
- TV rights of its championship
While growth was 14% in 2017, the top 32 of the most important valuations of European football recorded an increase of 9% in 2018 crossing for the first time the bar of 30B euros in valuation.
At the level of classification, Manchester United maintains its leadership with an estimated value ate 3,2Mds euros. The club recorded an increase of 5% over the previous year. The entry into force of the new round of Premiership TV rights during the season 2016-2017 explains this increase. As a result, it widens the gap on his main pursuers in 2018. A paradox of this evaluation, Real Madrid. Why? Because despite his victory in the Champions League, it recorded a regression of its valuation of 2%. In my opinion, it is a result of the bonuses to the players and the technical staff for the second consecutive success. Honestly, I am waiting to see next year’s report to see if the third consecutive win leads to more regression.
Note that the hierarchy in a wider image has experienced very few evolutions form the 2017 edition. Two notable facts are the progression of Leicester City due to the journey in the Champions League and the direct entrance of West Ham United in the 16th rank reinforcing the presence of the English clubs.
On the side of the Ligue 1, PSG remains at the gates of the top 10 with a valuation of 1,142Md Euros. However, despite an increase in its valuation of 14% the gap has grown between PSG and the top 10. The fault at a faster pace displayed by Tottenham which records the strongest growth of the principal clubs. No to mention that is likely to continue the ascension due to the delivery of the new stadium. In French side, OL also shows one of the major increases in the ranking with a value of 35%. Most of that growth is the integration of ownership of its stadium in its accounts which led to being ranked in 22nd position. Last but not least, AS Monaco entered the list for the first time in 2018 edition being of the 30th position. The big part of its success was the large surpluses in the balance of the transfers which was in favor of the club.