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Squad Market Value vs. Performance – Bundesliga

With the end of the Bundesliga won once more by Bayern Munchen, we present you the relationship between the squads’ market value and their league standings as well as the impact on that valuation due to the COVID-19 pandemic.

The main highlights were, without a doubt, SC Freiburg and FC Union Berlin by reaching the 8th and 11th positions, respectively, in the championship presenting the 2nd and 5th squads with the lowest market value (37 and 114 million Euros at the beginning of the season).

Regarding SC Freiburg, Nils Petersen, Lucas Holer and Jonathan Schmid contributed a lot by scoring 24 of the team’s 48 goals but also Nicolas Hofler‘s good performances. We remind you that SC Freiburg is also the club that takes more advantage of the salaries it pays to its athletes, as we showed earlier here.

FC Union Berlin also stood out with the contribution of Christopher Trimmel and Sebastian Andersson. The Berlin team also presented this season the 2nd lowest average salary per player in the competition.

At the same time, the big disappointment turned out to be Werder Bremen who, with a squad currently valued at around 119 million Euros and the 12th most valuable squad at the start of the season, was unable to go beyond the 16th place in the German league.

Between the 1st of April and the 15th of June, the market values ​​of the squads suffered an abrupt drop due to the pandemic, about 18%, with Bayern Munchen being the most harmed due to the devaluation of its players by about 180 million Euros. With the resumption of the championships, these values ​​have been slowly rising in some cases.

Market values corresponding to 7/15/2019 and 7/15/2020.

COVID-19 impact (difference between the values at 4/1/2020 and 6/15/2020).

Values in million of Euros.

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KPMG Football Clubs’ Valuation: The European Elite 2020

KPMG Football Benchmark released last Thursday its 5th edition of the report on the enterprise value of clubs. Thus, due to the crisis caused by the pandemic of COVID-19, these values ​​will tend to fall due to the necessary market adjustments.

As in previous reports, Real Madrid and Manchester United occupy the first two places in the ranking followed by Barcelona, ​​who came to occupy the third position that belonged to Bayern Munchen, a club that in 27 years has never presented negative financial results.

Another surprise of this edition is the lack of Serie A clubs in the Top-10 since Juventus dropped to 11th place.

Galatasaray was the club that grew the most compared to the previous year (49%) followed by Paris Saint-Germain and Internazionale.

On the other hand, Real Madrid takes 1st place for the third time since 2016 mainly due to the three UEFA Champions League won and a 41% growth in commercial revenues. Manchester United maintained the 2nd position due to the strength of its brand and a significant accumulated EBIT. In 3rd place, Barcelona recorded a 50% growth in operating revenues and 52% in commercial revenues since 2016, thus leading it to rise in one place compared to last year.

Taking into account the group of 32 clubs that are part of this ranking, between 2016 and 2020, its value has always grown (51% accumulated) mainly due to a 44% increase in operating revenues over this period. All revenue streams increased, with broadcasting revenues being the main highlight with an increase of 65% while matchday and commercial revenues grew by 22% and 39%, respectively. Another important fact is the decreasing dependence of 25 of the 32 clubs on matchday revenues.

At the same time, it is important to note that, over the 5 editions of this report, the weight of the Top-10 in the total enterprise value of the 32 clubs has decreased by 4% to 66%.

Regarding individual clubs, in percentage terms, since 2016, Olympique Lyonnais was the club whose value grew the most (193%) followed by Tottenham and Internazionale. In absolute terms, Liverpool was the one that most saw its enterprise value grow (1,385 million euros). On the other hand, AC Milan was the only one to lose value over the years. Concerning financial results (EBIT), Tottenham is the outstanding club with an accumulated value of 439 million Euros.

Celtic FC (Scotland), PSV Eindhoven (Netherlands), Olympique de Marseille and AS Monaco (France), Fenerbahçe SK (Turkey), and Sporting CP (Portugal) were almost at the Top-32 in 2020.

Enterprise Value Ranking (Top-32)

 

Clubs’ Enterprise Value Variation Ranking (2016-2020)

 

Enterprise Value Variation Ranking by Country (2016-2020)

Looking at the clubs that were part of the editions of this report between 2016 and 2020, and aggregating them by the country, it appears that the value of the clubs from Ligue 1 has been the one that has gone up the most (74%). In absolute terms, the 1st place belongs to the Premier League clubs (6,225 million Euros).

 

Finally, between 2016 and 2020, English clubs were the ones that gained the most weight in the total value of the top-32, comprising 39% of it in 2016 and 41% in 2020.

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