Clarets Ninth Most Valuable Club in the Premier League
Burnley Football Club have been valued at £350 million, the ninth most valuable club in the Premier League according to new analysis by University of Liverpool Management School football finance expert Kieran Maguire.
Tottenham Hotspur led the table, with a valuation of more than £2,567 million, putting them above Manchester City and the rest of the ‘big six’. Wolverhampton Wanderers and Newcastle United were the other two teams above Burnley in the list, calculated by adding the numbers supplied by clubs to Companies House and using a valuation method broadly based on the Markham Multivariate Model to reach an assessment.
The Clarets reported a profit for the third straight year when their accounts were released at the end of March and have been run on a stable financial footing by club Chairman Mike Garlick. Earlier this month he warned of a possible worst case £50 million shortfall should this season be cancelled and there be no clear date for next season starting. However he stressed the Clarets would be able to come through the coronavirus pandemic, particularly if the broadcasting payments come through.
Maguire and his team had Burnley in the top half of the valuation table, the analysis said of the Clarets: “Burnley’s regular appearance in the top half of the valuation table always provokes queries, but ultimately reflects that they are in many ways the club that punches above their weight both on and off the pitch. Burnley’s income decreased slightly in 2018 despite participation in the Europa League.
A fall from seventh to 15th in the Premier League meant far lower prize money (this works out at about £2 million per place in the final table) which offset the additional revenue from Europe. The Clarets success is built around a modest wage and transfer fee budget. They usually recruit domestic players who have proved themselves to be successful in the Sky Bet Championship.
Burnley have not required any cash injections from their owners for a decade and have the ability to deliver profits on an annual basis when they are in the Premier League and modest losses when in the Sky Bet Championship. At the top end of the table Tottenham, Manchester City and Manchester United led the way followed by Liverpool, Arsenal and Chelsea.
Maguire said: “Spurs are top of the valuation table because in 2018/19 they delivered a Champions League final and a top four Premier League finish on a wage budget that was £100-150 million lower than the rest of the big six. As such they made more profits and this was reflected in the final valuation number, with football now halted because of the coronavirus pandemic there will be many nervous boardrooms up and down the country.”