Manchester City have overtaken rivals Manchester United as the most valuable club in the premier league.
According to the new finance football study Manchester City are currently valued at £2.364bn, which is up £385m from last year, while United are valued £2.087bn, a drop of £376m which is blamed on “higher wages and lower profit”.
The Manchester clubs are the only clubs to be in the two billion bracket in the premier league and the top 6 accounts of around three-quarters of the combined league value(74%) (10.9bn). Just outside the top 6 we have Burnley as the closest but almost £1bn behind Arsenal in 6th place.
Tottenham Hotspurs (£1.837bn), Liverpool (£1.615bn) and Chelsea (£1.615bn) have seen the biggest rises but Arsenal dropped to £1.368bn due to being without Champions League football. Tottenham who last month reported a world record pre-tax profit of 138.9m received the highest increase due to there lack of spending in the transfer market and with consecutive champions league qualification money.
The cumulative value of the league’s clubs is £14.7bn, a 1.6% drop from last year.
To be able to calculate and come to an understanding of their data, the university looked at account revenue, profits, non-recurring costs, average profits on player sales over a three-year period, net assets, wage control and proportion of seats sold.
United came third, behind Real Madrid and Barcelona, in Deloitte’s list of the worlds richest clubs published in January, but that is just based on revenue.
This report was compiled by Kieran Maguire, a lecturer of football finance at the university’s Centre for Sports Business Group
Maguire, who runs the priceoffootball.com website, uses a valuation model created by Dr Tom Markham, a senior executive for Sports Interactive, the creators of video game Football Manager.