How the value of a football team is calculated, the different parameters and methods used

Football has always fascinated and involved millions of people all over the world, but especially in recent years, it has been observed that, in addition to the sports side, it has become an increasingly wide and influential space from an economic point of view. , business and club evaluation.

The interest of large foreign investors, the frequent changes in the ownership of European and Italian clubs and the radical change that has transformed simple companies into listed companies require a reflection on how it is possible to calculate the value of a professional club.

What are the parameters that allow us to calculate the value of a football team in 2022?

The main criteria currently being considered are:

– Market value of the players
– Television rights
– merchandising and sponsorships
– stage
– International brand and brand value
– sports results

The importance of each parameter to establish the value of a football club

Many may mistakenly think that the value of a professional football club depends exclusively of the market value of the players who are part of the club in question, this item is actually just a piece of the puzzle.

The main activity that the clubs carry out is the sale of the sports show which generate revenue from ticket sales, season tickets, TV rights, stadiums, merchandising, sponsorships and brand value.

It is important to understand how this income can affect the valuation of a club, in fact the elements mentioned above weigh differently on the income of a club that determines its value.

EL television rights represent on average more than 50% of revenue, obviously this figure varies depending on the country in which we are, the collection of the stadium weigh much less with a figure ranging from 10% to 20% depending on the stage. whether owned by the club or not. He sponsored instead they account for about 30% of a club’s annual income.

Another key parameter is brand and the international appeal of the brandbecause the more a club is known around the world, the more revenue it will be possible to earn.

At the same time, the brand also affects the social monitoring of a club that today is an essential part of communication because through social media clubs offer news, new collaborations, buying or selling players and selling tickets the stadium.

Closely connected to the brand is the corporate reputation of a club which affects the ability to attract new fans, new sponsors and new business associations.

A club’s reputation also depends on national and international sports results, which in turn affect the club’s outside visibility.
national borders and the ability to attract high-level, international players.

The different methods to calculate the value of a football team in 2022

Over time, many sites and newspapers have tried to formulate different methodologies to allow calculate the value of a clubc, among the many proposals, one has had a special success and reliability by professionals: the study of the consulting firm KPMG.

He method proposed by KPMG it is based on the corporate value calculated as the sum of the market value of capital plus debt, less cash and cash equivalents.

The approach adopted is the Multiple Revenue, a method that measures the value of a company in relation to the revenue it generates from five pillars: profitability, popularity, potential
sports, television rights and stadium property.

According to KPMG, the 10 teams with the highest value in 2022 are:

1) Real Madrid (3,814 million euros)
2) Manchester United (€ 2,883 million)
3) Barcelona (2,814 million euros)
4) Bayern Munich (2,749 million euros)
5) Liverpool (2,556 million euros)
6) Manchester City (2,483 million euros)
7) Chelsea (2,179 million euros)
8) Psg (2,132 million euros)
9) Tottenham (€ 1,912 million)
10) Juventus (1,597 million euros).

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