Foxes join European elite as valuation soars
Leicester City have leapt into the European elite after their Premier League title win in the 2015/16 season, according to figures from an influential new report.
KPMG’s Football Clubs’ Valuation: The European Elite 2017 report providing an indication of the Enterprise Value of the 32 most prominent European football clubs, and sees the Foxes enter the list in 16th position with an Enterprise Value reckoned, at top calculations, to be around €482m.
With a combined Enterprise Value of €29.9bn, the aggregate value of Europe’s 32 leading clubs grew by 14 percent in comparison to last season.
Despite another disappointing Premier League season, Manchester United top the list ahead of Real Madrid and Barcelona, becoming the first club to surpass the €3bn threshold in Enterprise Value.
Andrea Sartori, KPMG’s global head of sports and the report’s author, said: “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 internationalization 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.”
Sartori continued: “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.”
English Premier League clubs dominated the ranking, accounting once again for approximately 40 percent of the aggregate Enterprise Value. This is expected to increase next year as a result of the broadcasting agreement which started this season.
