How do you rate a football club? – Athleticism

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Imagine that you are looking for a new home. You want something modern and you know which part of town you’d like to live in – somewhere central and with potential for growth.

You’re not quite ready to start browsing just yet, so you start your search online and quickly find something that looks like your street and is roughly within your budget.

Wait, what is it? The same place on another website for 15% more? Oh no, it’s on that other website for 70% more? Woah, here’s something that says the owner will only listen to offers twice as much as the first price! How much does this place cost? Can I choose the price I like?

Now imagine you are a Gulf state, hedge fund boss or oligarch and want to buy Tottenham Hotspur. Well, the price of the club goes the same way as your dream house.

In its latest club valuation report, published last January, global financial services firm KPMG used its ‘proprietary algorithm’ to value Tottenham at just under £1.5billion, which which makes him the ninth most valuable in world football.

But three months later, the American business magazine Forbes published its annual list of the 20 most valuable football clubs. He had Spurs in 10th place but for a price closer to £1.7billion. Close enough.

However, a year earlier, using figures undistorted by COVID-19, University of Liverpool football finance expert Kieran Maguire applied a bespoke valuation method to the 20 Premier League teams. . This equation spit out a valuation of almost £2.

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