KMPG’s Football Benchmark report uses five soccer-specific metrics to extrapolate an EV – profitability, popularity, sporting potential, broadcasting rights and stadium ownership.
Real Madrid have broken through the €3 billion (US$3.34 billion) barrier for the first time, largely in part to the significant prize money earned from winning three consecutive Champions League titles. The club have also seen a 29 per cent operating revenue growth over the past four years.
Despite taking top spot, Real’s EV is actually lower than the English giant’s mark from 2018. Manchester United’s value has slipped some €48 million (US$55.5 million) over the last year.
By earning first place in KMPG’s report, Real Madrid have now topped three economic rankings in 2019. Los Blancos came out on top in the Deloitte Football Money League and Brand Finance’s value rankings.
English clubs dominate the top ten of the Football Benchmark report, largely in part to the Premier League’s superior TV revenues, with United, Manchester City, Chelsea, Liverpool, Arsenal and Tottenham all present.
Barcelona, Bayern Munich and Juventus make up the rest of the top ten, with Barcelona having seen a four per cent decrease in EV from 2018.
English TV revenues also means that even relatively smaller Premier League clubs such as Leicester and West Ham rank 16th and 17th respectively, ahead of Champions League semi-finalists Ajax (27th) and seven-time European champions AC Milan (19th).
Scottish champions Celtic and Spanish top flight side Villarreal are both newcomers to the top 32 as Turkish giants Fenerbahçe and Spanish club Valencia drop out. Celtic’s addition takes the number of countries represented on the list up to nine.
Italian side Inter Milan recorded the largest year-on-year increase with a huge 41 per cent, whilst Champions League finalists Liverpool and Tottenham recorded 33 and 31 per cent increases respectively.
Tottenham have also recorded the second highest overall growth in EV over a three-year period from 2016 with 110 per cent, with French side Lyon boasting a huge 150 per cent increase over the period. Barcelona are the only side in the top 32 to record a decrease in their EV over the three-year period (-3 per cent).
Andrea Sartori, KPMG’s Global Head of Sports, said: “For the third consecutive year, the overall EV of the 32 most prominent European football clubs has increased by nine per cent.
“This growth rate is in contrast with the overall trend of the major European Stock Exchanges, notably the STOXX Europe 50 Index1, showing a year-on-year decrease of 13 per cent and demonstrating the different pace at which the football industry is evolving.
“The transition of major clubs into media and entertainment companies, with global brand exposure, also helps create more stable and predictable cash flows and consequently better warranties to investors and financiers.”