{"id":58701,"date":"2025-12-15T11:12:03","date_gmt":"2025-12-15T10:12:03","guid":{"rendered":"https:\/\/www.accuracy.com\/?p=58701"},"modified":"2025-12-15T16:52:38","modified_gmt":"2025-12-15T15:52:38","slug":"pourquoi-les-clubs-de-premier-league-beneficient-ils-dune-prime-de-valorisation","status":"publish","type":"post","link":"https:\/\/www.accuracy.com\/fr\/worth-their-weight-in-goals-why-do-premier-league-clubs-command-a-valuation-premium\/","title":{"rendered":"Ils valent leur pesant d'or : pourquoi les clubs de Premier League b\u00e9n\u00e9ficient-ils d'une prime de valorisation ?"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Football has always been more than just a game. Its simplicity \u2013 few rules, little equipment, and the ability to play almost anywhere \u2013 has allowed it to spread further and faster than any other sport. Today, it\u2019s a global phenomenon: source of passion, identity and debate which can unite communities and simultaneously divide cities. At its core are the clubs \u2013 institutions steeped in history, tradition and cultural significance. Over the last century they have evolved from
grassroots organisations into complex, multi-faceted enterprises. Yet, despite the growing commercialisation of the sport and increased tension between fan loyalty and corporate interests, the emotional connection between fans and clubs is unwavering.<\/p>

This deep-rooted passion is itself part of a club\u2019s value, sitting alongside a unique blend of other assets. On one hand, clubs may own tangible assets such as stadiums and training facilities. On the other, intangible assets \u2013 such as player contracts and the club\u2019s brand, driven by prestige, legacy and supporter engagement \u2013 add further layers of value.<\/p>


Football clubs are therefore particularly intriguing from a valuation perspective. They embody many of the challenges that are also present in assessing traditional companies, including the complex interplay between tangible and intangible assets and the difficulty of valuing the latter. The industry is also marked by volatility and uncertainty, where extreme economics come into play and conventional financial models often struggle to capture the dynamics of the game.<\/p>


This article examines whether traditional valuation techniques can truly reflect a football club\u2019s worth, and explores the factors which have made Premier League clubs the most valuable in the world.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Part 1) How can we value football clubs?<\/h2>

\u00a0<\/p>

Do traditional approaches apply to football clubs?<\/h4>

Traditional valuation techniques such as the Discounted Cash Flow (DCF) method, multiples analysis and Net Asset Value (NAV) measurements provide a well-established financial framework for assessing a company\u2019s worth. However, these methods often need to be adapted to account for the unique characteristics of specific industries. This is particularly true in football, where drivers of value extend far beyond financial performance, encompassing sporting success, brand equity and fan loyalty.<\/p>

The DCF<\/strong> method values a business by forecasting future cash flows and discounting them back to their present value. Football clubs generate cash flows from diverse sources including broadcasting rights, ticket sales, sponsorship and merchandising. For well-run, profit-oriented clubs, DCFs can therefore be a useful tool. However, this method is reliant upon the availability of reliable projections, which may pose a challenge in the unpredictable world of football. For example, broadcasting deals often form the bulk of a club\u2019s revenues and are typically locked in through multi-year contracts. While this provides some visibility over future cash flows, the value of these deals may be performance-dependent (e.g. tied to league position, European qualification or relegation), introducing volatility that DCF models may struggle to accommodate.<\/p>

Moreover, not all clubs are typical for-profit business. There is often a tension between sporting and financial performance; winning trophies can come at a cost far higher than the direct financial reward. For some owners, this is a price worth paying out of passion for the club; for others an unacceptable return on investment. Many clubs are owned by individuals, businesses or states who may prioritise prestige, strategic goals or political interests over financial returns (a \u201ctrophy asset\u201d). If an investor believes a football club can generate synergies with its other activities or enhance legitimacy in commercial or political dealings, it may be willing to pay significantly more to acquire the club than the value of its cash flows alone.<\/p>

The multiples <\/strong>approach assesses value \u2013 typically, the Enterprise Value (EV), being the total value of a business – \u00a0by reference to the observable market value of comparable businesses as a function of an underlying metric such as revenue (e.g. EV\/Sales) or profit (e.g. EV\/EBITDA, or EV\/EBIT). In football, revenue-based multiples are used more frequently than profit metrics due to clubs\u2019 notoriously inconsistent earnings, both due to unpredictable sporting performance and the strategy of the club\u2019s owners.<\/p>

Unlike typical businesses, football clubs also derive substantial value from intangible, non-financial metrics such as brand, fan loyalty and legacy; however the extent to which this impacts different clubs can vary significantly. Like in any valuation, care must therefore be taken to correctly define the sample of comparable clubs to arrive at a representative multiple.<\/p>

Finally, NAV<\/strong> values a company by reassessing its assets and liabilities at market value. Although established valuation methodologies exist to assess the value of squads, brands and stadia, this exercise inherently involves a degree of subjectivity and faces a number of football-specific challenges. For example, while physical training facilities can be valued as real estate assets, they also serve to develop players and generate future revenues, the value of which is highly uncertain and can be hard to quantify. When a 17 year old academy player called Harry Kane went on loan from Tottenham Hotspur to Leyton Orient in 2011, no financial model could have predicted that he would become both Tottenham and England\u2019s all-time top scorer, earning millions in commercial revenues for the club and over \u20ac100m in transfer fees when he moved to Bayern Munich 12 years later – a striking example of the extreme economics at play in football.\u00a0 \u00a0<\/p>

In summary, while traditional valuation techniques provide useful insight, they often capture only part of the story when it comes to football clubs. The unique dynamics of the industry – where deep-rooted fan loyalty, historical legacy, and strategic ownership objectives come into play \u2013 frequently create a mismatch between financial fundamentals and market value. This explains why some clubs, despite running at a loss, command exceptionally high valuations due to their global appeal and the strength of their intangible assets.<\/p>

\u00a0<\/p>

Football-specific valuation approaches<\/h4>

To address football\u2019s idiosyncrasies, tailored, multi-variate valuation models have emerged. A notable example is an approach developed by ACE Advisory\/Football Benchmark (formerly KPMG\u2019s sport advisory team), which assesses EV based on an adjusted revenue multiple which reflects club-specific factors such as profitability, popularity (e.g. social media followings), squad value, broadcasting deals and stadium ownership. Forbes have adopted a similar revenue-based approach, albeit with different assumptions and inputs.<\/p>

These models consistently rank Premier League clubs amongst the most valuable. According to Football Benchmark<\/em>, 9 Premier League clubs account for 43% of the total EV of Europe\u2019s 32 most valuable teams. This is unsurprising given that, of the 10 clubs with the highest revenues in world football, 6 play in the Premier League (Liverpool, Man United, Man City, Arsenal, Chelsea and Tottenham).[1]<\/a> All 6 of these clubs appear in the top 10 of Football Benchmark and Forbes\u2019s valuations.<\/p>

It is questionable to what extent valuations derived from these models accurately reflect the amount an investor is willing to pay for a football club. Analysis of Football Benchmark<\/em>\u2019s valuations of Chelsea and Manchester United prior to their respective sales in 2022 and 2024, shows the actual price paid was c. 20-30% higher than the theoretical valuation.<\/p>

Nevertheless, the overall message is consistent with reality \u2013 English clubs command the highest valuations and, on average, the highest revenue multiples. This is demonstrated by an analysis of actual purchases of clubs in the top 5 European leagues over the last 10 years, as set out below.<\/p>

EV\/Revenue multiple of transactions in top 5 European league (2015-2025)<\/u><\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

In summary, both observable industry metrics and theoretical valuation models support the notion that Premier League clubs command a premium over comparable clubs in other leagues. Why is this?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Part 2) Why are Premier League clubs the most valuable in football?<\/h2>

\u00a0<\/p>

For a football club, success can be viewed through two distinct lenses. For fans, it\u2019s determined by performance on the pitch \u2013 winning games, tournaments and trophies. Meanwhile, although owners recognise the importance of sporting success, they often prioritise financial returns. These are primarily driven by (i) brand recognition and global presence, leading to increased sponsorship and commercial opportunities, (ii) increasing in-stadium and TV audiences, leading to higher gate receipts and broadcast revenues and (iii) revenues from player sales. While \u00a0footballing success often leads to financial success, it is by no means guaranteed.<\/p>

Well-run football clubs can thrive as a result of internal decision-making, but their performance is also shaped by broader league-wide factors which can amplify (or limit) individual success:<\/p>