Tottenham valued higher than Manchester City and Liverpool

What's the true value of your club?

A new method of valuing football clubs has shown the financial discrepancy between the Premier League's elite and those fighting to stay in the division.

Tom Markham, a qualified accountant and former exchange trader with an MBA in Football Industries, has devised a new, six-point plan to find the elusive value of a club.

Markham, from Henley Business School at the University of Reading, has used revenue, profit (or loss), net assets (all the club's assets, less all its liabilities, including debt) as well as stadium utilisation per cent and wages to revenue per cent, based on figures between 2003/04 and 2011/12 to draw up a true valuation of a club's worth.

The 'league table' values Manchester United, Arsenal and Chelsea at a combined total of almost £2.5billion, while Queens Park Rangers, Reading and Wigan, the current bottom three, have a combined value of less than £160 million.

Markham said: "In recent weeks Arsenal was rumoured to be the target of a £1.5billion offer by a Middle Eastern consortium which turned out to be a hoax. So where do these club valuation figures come from and which can be trusted? Uniquely my model considers income, profits, stadium capacity and usage, player spending, debt and other factors to produce a ‘like for like' price that a ‘neutral' person might pay for any particular club.

"The table provides interesting reading. The MMM (Markham Multivariate Model) English Premier League valuation table shows regularly profitable Tottenham Hotspur is worth more than both Manchester City, the Premier League title-holders, and Liverpool, 18-times champions.

"Manchester City being fifth is not surprising as the club don't own their stadium, which anyway has only 47,805 seats, much lower than the likes of United and Arsenal and they've spent over the odds on player transfers and wages.

"Liverpool is as low as sixth for two main reasons: missing out on the large revenue streams rivals make from the Champions League and losing out to rivals every match day due to their stadium situation. Liverpool earns £1.5m per match day, versus Manchester United's £3.7m. I expect the club's valuation to increase significantly when the re-development of Anfield is complete."

Twelve Premier League clubs changed ownership between 2005 and 2010, and at present 11 of the 20 sides in the division are under foreign ownership.

 

2012 EPL club valuations table using the Markham Multivariate Model

Rank

Club

Value (£m)

1

Manchester United

1,060.4

2

Arsenal

942.9

3

Chelsea

510.5

4

Tottenham Hotspur

436.3

5

Manchester City

401.1

6

Liverpool

352.2

7

Newcastle United

275.8

8

West Bromwich Albion

126.9

9

Sunderland

121.8

10

Everton

112.3

11

Fulham

108.7

12

West Ham United

104.3

13

Aston Villa

102.5

14

Stoke City

94.9

15

Norwich City

90.1

16

Swansea City

64.8

17

Queens Park Rangers

59.9

18

Reading

58.0

19

Southampton

57.5

20

Wigan Athletic

42.8

VIDEO
Have you tried new the Independent Digital Edition iPad app?
Life & Style
tech
Arts & Entertainment
Ricky Gervais at a screening of 'Muppets Most Wanted' in London last month
tvRicky Gervais on the return of 'Derek' – and why he still ignores his critics
Sport
Luis Suarez of Liverpool celebrates his goal
sport
Arts & Entertainment
James Franco and Chris O'Dowd in Of Mice and Men on Broadway
theatreReview: Of Mice and Men, Longacre Theatre
Life & Style
Infant child breast-feeding with eyes closed
healthTo stop mummy having any more babies, according to scientists
News
news
Arts & Entertainment
film
Life & Style
Going down: Google's ambition to build an elevator into space isn't likely to be fulfilled any time soon
techTechnology giant’s scientists say there is no material strong enough for a cable from Earth into orbit
Arts & Entertainment
Homer meets Lego Marge in the 25th anniversary episode of The Simpsons, set to air on 4 May
tv
Life & Style
From long to Jong: Guy Pewsey gets the North Korean leader's look
fashionThe Independent heads to an Ealing hairdressers to try out the North Korean dictator's trademark do
Extras
indybest10 best smartphones
Latest in Sport
Sport
Caption competition
Caption competition
Have you tried new the Independent Digital Edition iPad app?
Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Ricky Gervais: 'People are waiting for me to fail. If you think it's awful, then just don't watch it'

Ricky Gervais: 'People are waiting for me to fail'

As the second series of his divisive sitcom 'Derek' hits screens, the comedian tells James Rampton why he'll never bow to the critics who habitually circle his work
Mad Men series 7, TV review: The suits are still sharp, but Don Draper has lost his edge

Mad Men returns for a final fling

The suits are still sharp, but Don Draper has lost his edge
Google finds a lift into space will never get off the ground as there is no material strong enough for a cable from Earth into orbit

Google finds a lift into space will never get off the ground

Technology giant’s scientists say there is no material strong enough for a cable from Earth into orbit
Westminster is awash with tales of young men being sexually harassed - but it's far from being just a problem in politics

Is sexual harassment a fact of gay life?

Westminster is awash with tales of young men being sexually harassed - but it's far from being just a problem in politics
Moshi Monster creator Michael Acton Smith: The man behind a British success story

Moshi Monster creator Michael Acton Smith

Acton Smith launched a world of virtual creatures who took the real world by storm
Kim Jong-un's haircut: The Independent heads to Ealing to try out the dictator's do

Our journalist tries out Kim Jong-un's haircut

The North Korean embassy in London complained when M&M Hair Academy used Kim Jong-un's image in the window. Curious, Guy Pewsey heads to the hair salon and surrenders to the clippers
A History of the First World War in 100 moments: A forgotten naval victory in which even Nature played a part

A History of the First World War in 100 moments

A forgotten naval victory in which even Nature played a part
Vespa rides on with launch of Primavera: Iconic Italian scooter still revving up millions of sales

Vespa rides on with launch of the Primavera

The Vespa has been a style icon since the 1950s and the release this month of its latest model confirms it has lost little of its lustre
Record Store Day: Independent music shops can offer a tempting alternative to downloads

Record Store Day celebrates independent music shops

This Saturday sees a host of events around the country to champion the sellers of well-grooved wax
Taunton's policy of putting philosophy at heart of its curriculum is one of secrets of its success

Education: Secret of Taunton's success

Taunton School, in Somerset, is one of the country's leading independent schools, says Richard Garner
10 best smartphones

10 best smartphones

With a number of new smartphones on the market, we round up the best around, including some more established models
Mickey Arthur: Aussie tells ECB to stick with Ashley Giles

Mickey Arthur: Aussie tells ECB to stick with Ashley Giles

The former Australia coach on why England must keep to Plan A, about his shock at their collapse Down Under, why he sent players home from India and the agonies of losing his job
Homelessness: Why is the supported lodgings lifeline under threat?

Why is the supported lodgings lifeline under threat?

Zubairi Sentongo swapped poverty in Uganda for homelessness in Britain. But a YMCA scheme connected him with a couple offering warmth and shelter
A History of the First World War in 100 Moments: When the world’s biggest shed took over Regent’s Park

A History of the First World War in 100 Moments

When the world’s biggest shed took over Regent’s Park
The pain of IVF

The pain of IVF

As an Italian woman vows to keep the babies from someone else’s eggs, Julian Baggini ponders how the reality of childbirth is often messier than the natural ideal