Off The Pitch introduce valuation figures in our Club Comparison Tool

23 April 2021

Dortmund
Photo: Alamy Borussia Dortmund are the only non Super League club in our enterprise value top 10 ranking

We have populated our state-of-the-art football finance tool with valuation figures for more than 200 European clubs.

Both Enterprise Value and Equity Value is included.

See who are the most valuable clubs of those who have published their 2019/20 financial reports.

Mads Meisner Christensen mm@offthepitch.com

Every day we work to improve our Club Comparison Tool and now we have taken a bigger step by adding valuation figures for more than 200 European clubs.

We have included both Enterprise Value and Equity Value to illustrate the difference on valuation whether including or excluding net debt.

Many methods can be used to determine the Equity Value of firms, but some are not applicable due to negative figures.

We have chosen the following method:

  • Enterprise value: Turnover ∗ EV/Revenue Multiple
     
  • Equity value: Turnover ∗ EV/Revenue Multiple ÷ Net Debt (Current- and long-term financial obligations less cash). A liquidity premium discount 20 per cent is applied to take into consideration the natural illiquidity of unlisted trades.

The EV/Revenue multiple each year is based on the average EV/Revenue multiple of 17 publicly listed European clubs in that year.

Equity Value of listed clubs as for example Manchester United, Borussia Dortmund and Juventus are the market capitalization the final day of the club's financial year. 

We have not made a calculation on clubs where we are not able to exclude player trading from their total turnover as that would skew the ability to compare.

If Net Debt exceeds Turnover ∗ EV/Revenue Multiple there is no calculation as that would make a negative valuation figure.