Manchester City have overtaken their local rivals, Manchester United as the English Premier League’s most valuable club, with higher wages and lower profits hurting the Old Trafford side.
In the wake of City’s amazing 2-0 spanking of The Red Devils in a recent cliff-hanger for The Citizens’ title race, the Etihad side have also dumped their across-the-street arch enemies in terms of finances, according to a football finance survey published by a university in Liverpool.
City, who are gunning for the EPL title back-to-back, are valued at £2.364 billion ($3.07 billion) in 2017/18, up £385 million, according to the study by the University of Liverpool’s Centre for Sports Business, while United are valued at £2.087 billion, which takes them down £376 million.
The value of Premier League clubs decreased by 1.6 per cent overall to £14.7 billion, with the ‘Big Six’ of United, City, Liverpool, Arsenal, Chelsea and Spurs making up £10.9 billion — 74 per cent of the total.
The gap between the bottom club in the Big Six and the next highest valuation is now nearly £1 billion.
Liverpool, Chelsea and Spurs show major increases, and Arsenal and Leicester show large falls due to non-participation in the Champions League.
The report’s model takes into consideration revenue, profits, non-recurring costs, average profits on player sales over a three-year period, net assets, wage control and proportion of seats sold.
United came third behind Real Madrid and Barcelona in Deloitte’s list of the world’s richest clubs published in January, which ranks clubs according to how much revenue they earn.
However, the report added that United still have the highest revenue of any club in the Premier League but increased costs meant they relinquished top spot in the valuation table, but the pair are the only two Premier League clubs valued at more than £2 billion.
The Liverpool University report read in part: “Manchester City’s value increased in 2018 due to a combination of higher revenue and lower wages.
“The ownership model of Sheikh Mansour which effectively means that the club is debt-free means that there are no loan interest costs and no dividends are paid to shareholders either.
“Critics of Manchester City will point out that it is part of a multi-club ownership model and that there are commercial deals with related parties which might not apply should the club be sold and therefore a prospective owner might not be willing to pay this value.”