Tottenham Hotspur are surprisingly the most valuable club in the Premier League, according to a recent report from the University of Liverpool.
Kieran Maguire, a lecturer in football finance at the university, detailed his research into the finances of the 20 Premier League clubs who competed in the 2018/19 season, using figures from their financial statements sent to Companies House.
And based on his extensive research, Spurs are now considered the most valuable Premier League team at £2.5bn. They were previously ranked in third place with a value of £1.8bn.
According to Maguire, the team’s income increased by 21% after the 2018/19 campaign, due to their new stadium netting them lucrative commercial deals, as well as reaching the Champions League final that year.
The north London side’s ability to keep their players’ wages considerably lower than the other ‘Big Six’ teams has also boosted their value tremendously, with only 39% of their income being spent on paying their squad.
“Spurs overtook both Manchester clubs at the top of the table on the back of reaching the Champions League final, a fourth-place finish in the Premier League and a wage bill barely half that of Manchester United.”
It’s resulted in them overtaking Manchester City and moving into first place, with the Cityzens seeing their value drop slightly from £2.4bn to £2.2bn, due to an increased wage bill.
Meanwhile, Manchester United have dropped to third, despite their value slightly increasing from £1.9bn to £2.1bn. Maguire explains that this has occurred due to better player sales, and overall better cost control.
But he also notes that the club’s once massive commercial advantage has slowed thanks to the lack of on-field success, which in turn has affected their commercial income.
“Manchester United’s income advantage has been on the back of commercial deals with a variety of partners, but this advantage has stalled in recent years as the lack of on pitch success has led to commercial income plateau.”
Having calculated that the ‘Big Six’ collectively make up 75% of the league’s value, Maguire is of the belief that the gap between themselves and the other 14 clubs will likely be maintained.
And he concludes that the coronavirus pandemic will severely affect both the present and future Premier League seasons, with revenue streams and transfer fees to be reduced significantly as clubs strive to keep their finances in order.