Arsenal’s on-pitch decline is being mirrored more than ever off it with the north London club no longer among the top ten most valuable clubs in the world, according to KPMG’s annual enterprise value report.
At the end of a season in which Mikel Arteta’s team failed to qualify for Europe for the first time in 25 years and supporter-led protests over Stan Kroenke’s ownership grew increasingly louder, KPMG say that their enterprise value dropped by 22% compared to this time last year.
The club is now worth £1.3bn, the report said, a fall of £360m compared to 12 months’ previous. The drop is predominantly a consequence of the pandemic but also because they “have been struggling on the field in recent seasons and have missed out on Champions League participation since 2016/17.”
Earlier today it was confirmed that the club have taken out a new loan from Barclays bank having repaid their short-term £120m borrowing from the Bank of England to help with cashflow issues brought on by the panedmic.
Compared to 2016, the first year of KPMG’s Football Benchmark report, Arsenal have dropped six positions with their value 13% lower compared to that point. Adding salt to the wounds, Tottenham Hotspur have seen the third biggest growth in value (113%) over the same duration and they have climbed three places in the rankings.
Spurs have, however, fallen one place to ninth due to suffering a more significant reduction (-17%) compared to Paris Saint-Germain (-8%). Chelsea remain London’s most valuable sporting entity, sitting seventh overall having seen a drop off of 15%.
1 Real Madrid -16% (compared to last year) Value: £2.62bn
2 Barcelona -10% Value: £2.58bn
3 Manchester United -20% Value: £2.39bn
4 Bayern Munich -9% Value: £2.36bn
5 Liverpool -14% Value: £2.059bn
6 Manchester City -17% Value: £1.95bn
7 Chelsea -15% Value: £1.69bn
8 Paris Saint-Germain -8% Value: £1.58bn
9 Tottenham Hotspur -17% Value: £1.54bn
10 Juventus -15% Value: £1.33bn
11 Arsenal -22% Value: £1.3bn
18 Everton -15% Value: £410m
20 Leicester City -24% Value: £382m
Eight Premier League sides feature in the top 20, with the London trio joined by Liverpool, both Manchester clubs, Everton and Leicester City. West Ham United are one of three clubs to have fallen out of the 32-club ranking having been included last season.
Real Madrid and Barcelona remain the top two clubs, while Manchester United are the most valuable English club.
None of the 29 clubs with existing data avoided a decrease, with the report stressing the impact of the pandemic.
“The aggregate Enterprise Value of the 32 most prominent European football clubs has dropped by 15% year on year (-£5.26bn), down to €33.6bn (£29bn), a value slightly higher than the 2018 level,” KPMG said.
“Broadcasting and matchday income were impacted to the greatest extent by the pandemic, whereas commercial revenues slightly increased, mainly thanks to agreements signed before the start of the health crisis.
“The impact of the pandemic is apparent in clubs’ profitability as well: only seven of the top 32 clubs reported a net profit, while there were 20 profitable clubs in this elite a year before. Despite the latest 15% EV drop mainly caused by Covid-19, the 32 clubs increased their aggregate EV by 27% from 2016 until now.”