Manchester United beats Madrid and Barcelona to become the most valuable club

Manchester United beat Champions League finalists Liverpool and Real Madrid to become the Most Valuable Club, a recent study by KPMG proves. The new study looked at different stats of 32 clubs, including their popularity on social media, operating revenues, and successful campaigns in European competitions.

The final rankings were decided after checking the ‘enterprise value’ of each club, which is decided by the accounting methods used exclusively at the firm. It includes the total debt of the club as well as the total cost of buying a club. The study, however, doesn’t consider this year’s records as it was limited to a three-season period ending on January 1, 2018. The difference, sources suggest, was made by the total enterprise value.

This value was higher than Spanish giants Barcelona and Real Madrid, both of which trailed behind United in the list. The club’s five percent year-on-growth fueled this. The club has a total valuation of 3.255 billion euros while Madrid has only 2.92 billion euros to its credit. Barcelona holds the third spot with 2.49 billion euros.

German club Bayern München ranked at number with a total value of 2.552 billion euros. Manchester City’s valuation was 2.16 billion euros. It rose up sharply in the rankings with nine percent year-on-year growth recorded by KPMG. The next four clubs in the top 10 managed their positions with the help of lucrative broadcasting deals, sponsorship deals and overseas rights which brought the majority of their revenue. This included Arsenal at number 7 with 2.102 billion-euro valuations, Chelsea with a 1.76-billion-euro cost, Liverpool with a 1.580 billion total and finally Tottenham with a 1.3-billion-euro estimate.

The change could also have been brought about as Jose Mourinho’s contract has been extended with United. Though he doesn’t stay with one club for too long, he could be planning a long-term strategy with the club. Recently, there was news about him trying to poach Chelsea winger Willian into the team, with the player being equally interested in playing under him.

Global head of sports at KPMG and the author of the report, Andrea Sartori said, “Despite this year’s [overall aggregate] growth being lower than last year’s 14 percent growth, the football industry continues its rise. Overall growth is driven by different factors, one of these being the increase of operating revenues of the top 32, at eight percent.”

Satori also noted that the staff payments and the high paying transfer deals hadn’t prevented the clubs from registering significant growth. The before-tax income of the clubs has increased by 17 times compared to the last year.

Other clubs who couldn’t make it to the top 10 had some spectacular gains of their own. Valued at 1.3 billion euros, the Spurs witnessed a 27 percent growth during the year. 2015-16 Premier League winner Leicester held the 15th spot with a 596-million-euro valuation, but they grew by a staggering 29 percent during the period of the study. Other notable entrants to the list were West Ham with a 531-million-euro estimate at number 16 and Everton, valued at 512 million euros at number 19.

Mathieu Thomas
Mathieu is a diehard Rafael Nadal fan. He is very passionate about covering emerging talents in different sports. When he is not screaming his lung out to support his favorite team, he can seen watching movies and planning his next travel destination.

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