After its enterprise value (EV) fell by €380 million (£325.7 million) between 2020 and 2021 due to the pandemic, Liverpool’s 2022 report has bounced back sharply in the value of Europe’s top teams.
The annual report, produced by analysts at Football Benchmark, has revealed the EV of clubs across the continent, with Liverpool’s 14 percent increase year over year taking them to an EV of €2.55 billion (£2.19 billion). , a figure that puts them fifth on the list behind Bayern Munich, Barcelona, Manchester United and Real Madrid, with the Spanish side topping the report for the fourth consecutive season.
For Liverpool, their 12 percent EV rise represents the biggest of the clubs in the top five of the report, although when looking at the top 10, both Manchester City and Chelsea, while lower EV have both seen bigger jumps in terms of percentages. per year on an annual basis, thanks in no small part to the presence of both in last season’s Champions League and both clubs finishing higher than Liverpool in the Premier League last year, a campaign that saw Liverpool stumble across the line for Champions League title. football to secure after injury-ravaged season.
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Enterprise value (EV) is the formula used to calculate the total value of a company’s equity, its good and bad parts, including the cost of stock and net debt. It is the sum of the market value of equity and net debt, less cash and cash equivalents. Football Benchmark has used EV as a benchmark as it allows comparison between clubs with different debt and equity structures. Things like profitability, popularity, sporting potential, broadcasting rights and stadium ownership are all part of the methodology.
Looking at the longer-term EV trends in Europe’s 30 most valuable clubs, it is Liverpool that have seen one of the highest increases in their EVs, after only Paris Saint-Germain. Since 2016, there has been a €1.28bn (£1.1bn) increase, a 101 percent increase that has come from sporting achievements on the pitch and the massive revenue growth that has taken place as a direct result of that. By comparison, three clubs on the list have all seen a drop in EV value, with Manchester United still second on the overall list, and Everton dropping one percent. Arsenal’s ban from the Champions League and lack of success has reduced their EV by five percent.
The biggest annual EV surge of the 30 clubs comes from AC Milan, the club closest to which is RedBird Capital Partners, the sports-focused private equity firm that owns 11 percent of Liverpool owners Fenway Sports Group. a deal to acquire the Italian side from current owners Elliott Management. AC Milan, who won the Serie A title this weekend, have recorded a 35 percent increase in their EV compared to the 2021 report, with operating revenue up 42 percent year over year.
Andrea Sartori, founder and CEO of Football Benchmark, said: “While our valuations are based on published financial numbers, they also take into account the latest trends and sentiments.
Indeed, last year’s financial results still bear the negative effects of COVID-19, while recent months have reflected solid signs that football is returning to normal, particularly with crowds back in stadiums and continued strong demand from sponsors and investors. Indeed, investors are looking ahead and thinking about the future, rather than dwelling on the past.
“The positive attitude in the market is well illustrated by the recent transaction with Atalanta and the continued potential sale of big clubs such as Chelsea or AC Milan, especially the rumors about transaction prices.”
West Ham United, Aston Villa and Europa League champions Eintracht Frankfurt were all newcomers to the list, while Schalke 04, Marseille and Fenerbahce all dropped out.