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Hammers revalued at £382m

Markham Method of valuing football clubs

Tom Markham created a valuation method of valuing football clubs, it has become the one that has become recognised as perhaps the most reliable method to date. It’s an elegant solution that looks at revenues, the state of the balance sheet, profitability, stadium utilisation and importantly the ratio of wages to revenues.

The formula is simple: Club Valuation = (Club Turnover + Net Assets) multiplied by (Net profit or loss plus Club Turnover) multiplied by the stadium capacity utilisation and divided by the turnover to wage ratio.

Using the West Ham United 2019 Financial results released in January 2020 the calculation looks like this.

West Ham Revenue £190.7m + Net assets -£19.4m = £171.3m

Multiplied by  Net Loss -£27.2m + West Ham Revenue £190.7m = £163.5m

(171.3 x  163.5) = 28,007

Multiply the total 28,007 by the London Stadium capacity/utlisation of 97.2% for 2019  = 27,224.34

Divide the 27,224.34 total by the wage ratio of 71.2%

You finish with a West Ham United valuation of  £382,350,261

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About Sean Whetstone

I am Season Ticket Holder in West stand lower at the London Stadium and before that, I used to stand in the Sir Trevor Brooking Lower Row R seat 159 in the Boleyn Ground and in the Eighties I stood on the terraces of the old South Bank. I am a presenter on the West Ham Podcast called MooreThanJustaPodcast.co.uk. A Blogger on WestHamTillIdie.com a member of the West Ham Supporters Advisory Board (SAB), Founder of a Youtube channel called Mr West Ham Football at http://www.youtube.com/MrWestHamFootball, I am also the associate editor here at Claret and Hugh. Life Long singer of bubbles! Come on you Irons! Follow me at @Westhamfootball on twitter

One comment on “Hammers revalued at £382m

  1. What a total load of nonsense. It fails to include any stadium or training ground assets (of which we have very little). The value in Chelsea’s ground would be massive, ours, zero as we don’t own it. Failing to include this in a club valuation is madness.

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