West Ham could be valued at as much as £2.2 billion according to Football Financial expert Kieran Maguire
Speaking on his Price of Football podcast this week Maguire explained the comparative multiplier formula for valuing football clubs claiming that The Multivariate Model, developed by Tom Markham in 2013 had seen its day and was no longer an accurate of valuing a football club.
The football expert explained the scarcity element in that there are only 20 Premier League clubs in the world and seven of those are unlikely ever to change hands.
There is also an ego and bragging rights factor to the valuation of football clubs which have become the must-have accessory of billionaires around the globe.
The comparative multiplier formula looks at recent sales of high-profile clubs and looks at how much they paid for each pound of annual revenue.
Chelsea was sold for £4.25 billion in 2022 with a turnover of £513m so the multiplier was 8.28.
Manchester United has been valued at £5 billion following the purchase of 27.7% for £1.25 billion With a turnover of £771m the multiplier is 6.48
Using London club Chelsea as a comparison and West Ham’s Turnover of £268m it values the Hammers at a massive £2.21 billion
Using the more recent Manchester United partial sale it values the Hammers at a more modest £1.74 billion.
If Chelsea were worth £4bil. then West Ham must be worth £5bil. ??
And there it is, the pendulum swings back again even sooner than predicted. Completely meaningless. Different ingredients but it still looks like diced carrot.
So what does this mean about the projected losses of £80 million which was published only 2 days ago Sean? Surely the new valuation changes the whole financial prospects for the club and means we should have more available for the Summer transfer window.
Sullivan might be tempted to sell for 2 billion .
It’s rubbish we don’t own our own stadium Chelsea and Man U do, that de values a club massively prob by 500 million, we have no assets just the training grounds I also believe rush green is council owned correct me if I’m wrong?
Fair point Tom.
However, Real Madrid sold their training ground to the City of Madrid for £290mil. back in 2001. (A massive overpay to bail Real out of debt/bankruptcy!)
Is it still the most highly valued asset club in the world….. yes.
The valuation was made on TURNOVER,nothing to do with “owning your stadium”. Besides,we have a lease still with 90 plus years left on it for the ground anyway. Also,Manchester City do not own their ground either,they ain’t doing too shabby are they?
He might have a majority stake but he doesn’t own the whole club. Therefore,he wouldn’t be getting back £2 billion.
Which means Sullivan and co will never sell