Manchester United Value: Professional auditors KPMG rated United as the first club to break the €3bn barrier for enterprise value…
English side Manchester United has been adjudged world’s most valuable football club, becoming the first ever club to have an enterprise value of over €3 billion. This was revealed by professional auditing firm -KPMG who described the development as a sure proof of positive growth in the industry. The Grande auditors came to a conclusion after studying the finances of 39 clubs in Europe.
The reports which were also based on the popularity of the clubs on social media, saw Man U overtake Real Madrid who has topped the list for a while. Per the report by KPMG, Real was worth €2.895 billion, Barcelona €2.688 billion, while Bayern Munich was fourth at €2.367 billion.
Manchester United value was rated at €3.004 billion (£2.61bn), ahead of both Real (€2.895bn) and Barcelona (€2.688bn).
Bayern Munich worth €2.367bn are fourth on the list and Manchester City coming in at fifth at €1.909bn. Chelsea, Liverpool, Juventus, and Spurs fill the next four positions, which means six of the 10 are from the Premier League. The red devils have also become the first ever club to have an enterprise value of over €3 billion.
Man U’s Europa Victory
Manchester United left mouths agape with their tremendous 2-0 win at the just-concluded Europa League. United made history when they found the back of Ajax’s net in Stockholm at the finals of the tournament.
Paul Pogba and Henrikh Mkhitaryan were on target to take the red devils to the prestigious Champions League competition. They gave their team an opportunity to participate in the following season’s Champions League after they failed to qualify through their domestic league position.
Man United’s lack of Sucess Insignificant to team’s Financial Status
Jose Mourinho’s team has not won the Premier League since Sir Alex Ferguson’s final season in charge in 2012-13. United has also not finished in the top four in either of the last two campaigns; although their UEFA Europa League triumph in 2016-17 means they will play a part in next term’s UEFA Champions League.
However, the club has gone down in history as one of the teams that garners tons of sponsorship offers, deals, etc. Man United makes more money than any other football club in the world. According to reports from the leading auditing firm, 26 global sponsorship deals and huge Premier League broadcasting rights have played a key role in United’s financial success, with the club recently projecting full-year revenues of between £560 million and £570 million.
Per the algorithm employed by KPMG, a combination of five factors form the basis of analysis with regards to the most valuable club. These factors; profitability, popularity, sporting potential, broadcasting rights, and stadium ownership, produces Enterprise value. KPMG makes it clear it takes in not only a club’s revenue into consideration but also the aforementioned factors.
Broadcasting rights have been described as the auditing firm as a very significant part of its algorithm.