Broadcasting boom lifts football’s Enterprise Value
May 31, 2017
In advance of the UEFA Champions League final between Real Madrid and Juventus on June 3rd, 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.
Andrea Sartori, KPMG’s Global Head of Sports and the report’s author, commented: “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 internationalisation 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. 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.”
In 2017, English Premier League clubs dominated the ranking, accounting once again for approximately 40 per cent 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 €1 billion, two more than in 2016, with Juventus FC and Tottenham Hotspur being the new entrants in this elite group, the latter ousting Paris Saint-Germain from the 10th position.
Despite the English dominance, Spain is still the only country with two clubs reporting an EV above €2 billion, namely Real Madrid and Barcelona.
The top 10 clubs by EV are:
- Manchester United
- Real Madrid
- Barcelona
- Bayern Munich
- Manchester City
- Arsenal
- Chelsea
- Liverpool
- Juventus
- Tottenham Hotspur
- Paris Saint-Germain
- Borussia Dortmund
- Atletico Madrid
- Schalke
- AC Milan
- Leicester City
- Everton
- Roma
- Inter Milan
- Napoli
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