ManU leads KPMG’s Football Club’s Enterprise Value ranking

KPMG released the 2nd edition of the “Football Clubs’ Valuation: The European Elite 2017” report, providing an indication of the Enterprise Value of the 32 most prominent European football clubs.

In spite of finishing far from Premier League top positions, Manchester United FC tops the list ahead of the two Spanish giants, becoming the first club to surpass the Euro 3 billion (Rs 21705630)  threshold in Enterprise Value.

With a combined Enterprise Value of Euro 29.9 billion ( Rs 21629361), the aggregate value of Europe’s 32 leading clubs grew by 14% in comparison to last season. English clubs, enjoying significantly higher broadcasting revenues than their peers, now occupy six spots in the top 10 as a result of Tottenham Hotspur FC’s rise to the 10th position, replacing Paris Saint-Germain FC.

UEFA Champions League finalists, Real Madrid CF (Euro 2.9 billion) and Juventus FC (Euro 1.2 billion) stand in the second and ninth positions respectively in KPMG’s ranking.
Leicester City FC, the 2015/16 Premier League champions, entered the list this year in a remarkable 16th position, joined by Athletic Club Bilbao (25th) and Beşiktaş JK (30th).

In advance of Saturday’s UEFA Champions League final between Real Madrid CF and Juventus FC and following the success of last year’s publication, KPMG has released the second edition of the “Football Clubs’ Valuation: The European Elite 2017”, a report providing an indication of the Enterprise Value (EV) of the 32 most prominent European football clubs.

“The aggregate value of Europe’s 32 leading football clubs suggests that the overall value of football, as an industry, has grown. While this is partially explained by football’s broadcasting boom, the internationalization of the clubs’ commercial operations, their investment into privately-owned and modern facilities, and overall more sustainable management practices, are also key reasons for this growth,” says Andrea Sartori, KPMG’s Global Head of Sports and the author of the report.

“In terms of media rights value, the English Premier League sits comfortably at the top of European leagues, although other major leagues have outlined well-defined strategies to compete for the attention of global fans. However, unlike other factors, individual club’s ability to influence their broadcasting income is often limited, despite the very evident impact this revenue stream has on their Enterprise Value,” adds Sartori.

In 2017, English Premier League clubs dominated the ranking, accounting once again for approximately 40% of the aggregate Enterprise Value. Moreover, as a result of the broadcasting agreement which has started this season, their position is expected to be even more prominent in next year’s report.

This year 10 clubs were valued in excess of Euro 1 billion, two more than in 2016, with Juventus FC and Tottenham Hotspur FC being the new entrants in this elite group, the latter ousting Paris Saint-Germain FC from the 10th position. Another remarkable change in the top-third of the table is Manchester City FC’s move to the fifth position, being valued at Euro 1.9 billion and surpassing Arsenal FC.

Despite the English dominance, Spain is still the only country with two clubs, Real Madrid CF and FC Barcelona, reporting an EV above Eur 2 billion. Furthermore, the overall value of Spanish clubs in the ranking increased by 10%, especially as a result of Atlético de Madrid (+34%) and Sevilla FC’s (+44%) significant growth and the entry of Athletic Club Bilbao in the top 32 list for the first time.

Germany, which recorded an aggregate EV increase of 14%, is again represented by only three clubs. Thanks to this growth, FC Bayern München is now valued at Euro 2.4 billion and sits again in 4th position, narrowing the gap to third placed FC Barcelona.

The analysis also highlights how Italian clubs continue to struggle to keep the pace with European peers. Serie A (overall 7%) is now represented by only six clubs, one less than in 2016, while SS Lazio’s value decreased by 2% and that of AC Milan, recently acquired by a Chinese consortium, remained at Euro 547 million.

By contrast, UEFA Champions League finalists Juventus FC, following a winning streak of six consecutive domestic titles, mirrored their on-pitch success with a 24% EV growth and remained the only Italian club in the top 10.

Among French clubs (reporting an overall 6% increase), it is remarkable that Olympique Lyonnais, now valued at Eur 317 million, scored the best result among the top 32 in terms of EV rise (71%). Meanwhile, Paris Saint-Germain FC could not avoid dropping from the top 10, despite an 18% increase in EV.

Six clubs not playing in one of Europe’s “Big Five” leagues made the ranking (AFC Ajax, PSV Eindhoven, SL Benfica, Fenerbahçe SK, Galatasaray SK and Beşiktaş JK), accounting for 6% of the total EV of the clubs under analysis. Within this group, Fenerbahçe SK and Galatasaray SK, now joined by 2015-16 Turkish champions Beşiktaş JK, witnessed impressive growth as a result of increased revenues and significant improvements in terms of cost control and profitability.