Football finance expert comes up with remarkable Newcastle United valuation

How do you make a Newcastle United valuation in terms of what the club is worth? Here is one expert’s view.

When it comes to a Newcastle United valuation in terms of what the club is worth – just like everything else in life, it is worth what somebody is willing to pay at any particular time.

However, with not many top football clubs usually sold in any particular season, various experts/organisations regularly attempt to take a financial snapshot of club valuations.

Swansea City have finally released their club accounts for the 2015/16 season, the last of the 20 to do so.

Following their release, Kieran Maguire, who lectures on football finance at Liverpool University, has carried a same calculation on 20 Premier League clubs based on their accounts for that (2015/16) season and has come up with a combined worth of £11.65bn.

That is an average of £517m per club.

Remarkable Newcastle United valuation

In this newly released list, Newcastle United are valued at£568.2m based on those 2015/16 accounts an Kieran Maguire’s financial template.

Premier League club valuations based on 2015/16 accounts by Kieran Maguire
(Price of Football):

£2.297bn: Manchester City

£2.232bn: Manchester United

£1.265bn: Arsenal

£1.151bn: Tottenham

£1.050bn: Chelsea

£589.3m: Liverpool

£568.2m Newcastle

£376.4m: Leicester City

£248.3m Southampton

£249.5m: Norwich

£229.5m: Stoke City

£211.1m: Everton

£169.7m: Crystal Palace

£166.8m: Bournemouth

£161.8m: West Brom

£161.7m: Aston Villa

£148m: West Ham

£131.7m: Sunderland

£125m: Watford

£113.5m: Swansea City

There is no detailed explanation of how he came up with his valuations but he does mention that Manchester City take top spot from Manchester United due to no debt and Manchester United’s transfer losses. So presumably the existence of debt, particularly if owed to banks etc, plus performance in the transfer market, play a big part.

Of course, for three clubs in this list, the awkward event of relegation will have much changed any valuations based on accounts for this (2016/17) season, when Kieran Maguire updates his table/valuations above.

Unlike Villa and Norwich though, Newcastle United are now back to being valued as a Premier League club and if Rafa Benitez can establish NUFC once again in the top tier, then with yet another massive increase in TV money forecast in the next deals (due to be negotiated in the next 12 months and then come into force with the 2019/20 season) the true valuation of clubs is certain to go ever higher.

Source of the article – The Mag