Tottenham Hotspur have dropped one place to ninth in KPMG’s annual Enterprise Value report, suffering a £310m decrease compared to 12 months previous as the pandemic hit all of Europe’s biggest clubs hard.
But the five-year trend points to a significant growth of the club brand, which may be considered under-fire chairman Daniel Levy’s biggest achievement. The club’s move to a state of the art stadium has elevated them to another level of financial competition and they have extended their gap from north London rivals Arsenal.
Spurs’ valuation is £1.54bn, a 17% year-on-year reduction, with the report saying their “growth is mainly driven by their ability to control costs, as demonstrated by their 46% staff costs-to-revenue ratio, the lowest among the 32 clubs [in the report].
“Moreover, once restrictions on fan attendance are eased, the new stadium, inaugurated at the end of the 2018/19 season, will likely deliver further benefits to the club.”
Despite the 17% fall, the club’s growth since 2016 remains 113% – a percentage bettered only by Marseille and Inter Milan. They were the 12th most valuable club five years ago.
That will do little to assuage the concerns of supporters as the club searches for a new manager and star player Harry Kane has signalled his desire to transfer to a club where he can compete for the biggest honours.
Chelsea are seventh overall, while Arsenal are outside of the top ten for the first time in 11th.
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 slipped 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 survived a decrease, with the report stressing the impact of the pandemic.
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
“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.”