Liverpool FC Forum

by babu » Thu Apr 05, 2007 6:48 am

I came across this valuation of football clubs on forbes.com.

I realise that as americans they may not be the best at working out the value of clubs. but this whole section, on football is quite interesting.

Forbes

But the most interesting is this ranking:

*if you can't see the table, its here Click


Manchester United at number 1, but with lower earnings than Real Madrid. Suprised to see Everton in the top 25. Look at the operating income for some of those clubs, United at around 92 Million and Ajax around 9 million. How on earth could you compete?

Wonder how fast LFC will climb that ladder when the Sky money comes in(as well as all EPL clubs) and the new stadium is built, because according to that table currently Manchester United is worth 3.5 times what Liverpool's worth.

I got no topic for discussion here, just thought it was interesting.

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by LFC #1 » Thu Apr 05, 2007 3:57 pm

by babu » Fri Apr 06, 2007 5:15 am

I just noticed something that made me smile.

according to that table:

Manchester United's current overall value is: USD 1 453 Million
                                Operating income is: USD     92 Million
If we ignore that the fact that the figure (operating income) is before tax, etc. That means per year Manchester United's earning is roughly +6 percent of their overall worth. Or if we really stretch it, then their growth (in value terms) is roughly + 6 percent.

Now lets have a laugh

Chelsea current overall value is: USD 553 Million
               Operating Income is: USD -37 Million

Probably wrong here, but that looks like Chelsea is making a loss of 37 million per year, which equates to about 7 percent of the clubs value. Obviously that would be worrying if your owner wasn't prepared to absorb those losses.

but that's not as bad as Everton:
Current Value: USD 165 Million
Operating Income: USD -15 Million

Thats a loss of roughly 9 percent of the clubs worth.

My very highly educated* conclusion: Everton ARE indeed a small club, and getting smaller each year.


*mildly educated actually, and i don't know much about corporate finances, I am speculating.

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by Barca Murph » Fri Apr 06, 2007 8:03 am

by babu » Fri Apr 06, 2007 10:08 am

Barca Murph wrote:FC Barcelona has no real value.

Agreed.   

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