KPMG’s annual ‘Football Clubs’ Valuation: The European Elite’ report has been released, with it particularly highlighting how COVID-19 has affected the sports industry financially.

The report, which analyses a club’s valuation and also its social media performances, particularly mentioned how future broadcasting rights negotiations could be affected as a result of the global health pandemic.

Luis Vicente, CEO, Eleven Sports told KPMG: “My hope is that the current situation will make the sports industry understand that we need to modernise the way we operate rights models. Our current securitised model places all the risk with the media operators.”

“I do not see how this one-sided model can be sustained without us seeing a significant reduction in the value of the vast majority of rights packages.”

“One solution is a risk/revenue-share proposition, which will create a much more robust ecosystem for everyone and ultimately, the potential for a bigger upside for all parties.”

KPMG’s report also delves into how player transfer will be affected given the fact that most clubs have suffered financial hardships during the global health pandemic.

Gianluca Di Marzio, a journalist for SKY Italy, stated: “It is very unlikely that the upcoming transfer market will entail sensational transfers. We can no longer expect any top club to sign three or four players for hundreds of millions of euros in one transfer season any more.”

During the report, KPMG announced that Real Madrid has topped its European Elite list with the company being estimated at €3.48bn, based on ‘enterprise value’ as of the 1 January 2020. Meanwhile, Madrid’s Spanish rival’s Barcelona have placed third with a valuation of €3.19bn.

The company’s enterprise value is based on previous seasons’ studied profitability, broadcasting rights, popularity, sporting potential and stadium value.

In total, five Premier League clubs have been placed in the top 10 of KPMG’s list with Manchester United placing second after having an enterprise value of €3.34bn.

To see KPMG’s full report, which includes its full list of club valuations and a breakdown as to how those valuations were made, click here.