Liverpool could be much closer to their rivals in valuation than the data suggests

Liverpool were ranked the fourth most valued team in the Premier League. A study by the University of Liverpool Management School football finance expert Kieran Maguire revealed Tottenham Hotspur at the top of the pile, a billion pounds better off than the Reds (h/t Liverpool Echo).

According to BBC Radio Merseyside (h/t Liverpool Echo), there is a perfectly reasonable explanation for this seemingly surprising revelation. The Reds recorded a  turnover of more than half a billion pounds back in February after increasing income by nearly £80 million.

A second-placed finish in last season’s Premier League coupled with success in the UEFA Champions League saw the Merseysiders pocket an eye-watering £533 million in total. Impressively, all three major revenue streams saw increases on the way to a before-tax profit of £42 million.(h/t Liverpool Echo

The study valued the club at £1.553 billion, well short of Spurs’ valuation at £2.567 billion. However, according to Maguire, the difference could be extremely skewed given the lack of complete data utilized in Liverpool’s favour.

Success on the pitch sparks the same off it!

Liverpool’s accounts finished on May 31st. A day before they won their sixth European title by beating Spurs in the Champions League final in Madrid.

The Reds have since gone from strength to strength as they wrapped up the UEFA Super Cup and the FIFA Club World Cup before running away with the Premier League. These factors would see the Reds receive significant financial boosts, something that was not factored into the study. (h/t Liverpool Echo)

The Reds have gone from strength to strength while Tottenham have sunk quicker than the Titanic.

“Since then, they’ve gone from strength to strength. They are the Premier League champions in waiting, so they will get financial rewards from that so I’d expect them to push on.”

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Factoring the success we have had onto the pitch, it looks inevitable that we will close the gap on the teams above us. The current financial crisis is set to impact clubs hard – with us no exception.

Thankfully, we have a winning team on the pitch and are in the best financial position we have been in quite some time.