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For those clubs that have subsequently been relegated to the Championship realistic values are 60-70% lower.Ī = Net Assets (adjusted for ‘soft’ loans from owners)
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The model assumes that the club retains its position in the Premier League. The figures are derived from the financial statements sent to Companies House.
#Is the premier league in football manager 2020 drivers#
The model takes into consideration the main financial drivers of football club value in the form revenue, profits, non-recurring costs, average profits on player sales over a three-year period (which ties into how the Premier League calculates profits for Financial Fair Play purposes), net assets, wage control and proportion of seats sold. The valuation method is broadly based on the Markham Multivariate Model created by Dr Tom Markham, who presently is a senior executive for Sports Interactive, creators of Football Manager. This is a reflection of shortcomings of any model-based system, but also does perhaps highlight the success or otherwise of some clubs in terms of their business strategies compared to sporting achievements. Some of the values reported do seem intuitively high or low. We took the decision to publish the results in the context that the findings are just discussion points for fans and not in any way to pretend that it is of any importance compared to the steps being taken to reduce the harm caused by the pandemic. There are a variety of models used in practice to determine company values, and in an actual takeover deal environment more than one would be used.Īt a time of global pandemic football is an irrelevance in terms of its importance to the economy, health, and general wellbeing of nations.
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This is the University of Liverpool’s annual Premier League club valuation report.
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