New Stamford Bridge could help Chelsea overtake Arsenal as London's most valuable club

Redevelopment: Chelsea want to increase the capacity of their stadium in west London
Tom Shaw/Getty Images
Vaishali Bhardwaj27 August 2015

Chelsea's redevelopment of Stamford Bridge will be vital if the Blues want to overtake Arsenal as the most valuable club in London, according to the author of research into the worth of Premier League teams.

Research by football finance expert Dr Tom Markham, published earlier this week, showed the Gunners trumped their London rivals Chelsea and Tottenham as the only club in the capital worth more than £1billlion - with Arsenal being valued at £1.118bn after an increase of 19 per cent in their worth in the last two years.

Despite winning four Premier League titles since Arsene Wenger's side last clinched the top-flight in 2004, champions Chelsea were found to be worth £826m following a 38 per cent rise in their value during the same period.

Arsenal's standing as London's most valued club has been attributed largely to their 60,000-capacity Emirates Stadium, which was opened in 2006, although the club's worth was calculated using several criteria including how much they earn and spend along with their wage bill.

Although Chelsea enjoyed a huge increase in their value in the last two years - helped by their club-record £40m-a-year shirt sponsorship deal with Yokohama tyres - the west London side's need to increase the capacity of Stamford Bridge, which holds just under 42,000 people, was noted as being a limiting factor in their growth.

But Dr Markham, who conducted the research, believes the Blues will be able to catch up with financial "pin-up boys" Arsenal in the value stakes when they increase the capacity of Stamford Bridge in the coming years.

Speaking exclusively to Standard Sport, he said: "If Chelsea redevelop Stamford Bridge as planned, the value of this capital infrastructure investment will be reflected in the club’s overall valuation bringing it much closer to Arsenal’s current valuation.

"Chelsea's on-field development is unlikely to be affected in the same way Arsenal’s was by the cost of developing the Emirates as Roman Abramovich has the resources to maintain a competitive squad and redevelop a stadium at the same time, if required.

"But there is no doubt that winning silverware leads to clubs generating more commercial revenue as blue-chip brands like to be associated with successful sporting brands.

"Bigger clubs now have global commercial strategies given that the Premier League and Champions League is broadcast to more than 200 countries worldwide."

He added: "It is possible [Chelsea could overtake Arsenal in the value stakes] but Arsenal are ahead of Chelsea in the development cycle and have already paid off the Emirates which generates an average of £3.5m for the club on every home match day.

"Arsenal are the pin-up boys of how a big club should be managed financially, but many fans would say that the club is too prudent and more money should be spend on on-field talent."

Chelsea and Arsenal's London rivals Tottenham, meanwhile, were found to be fifth in the table of the most valuable Premier League clubs, just behind the Blues, with a worth of £710m - a 60 per cent in the last two years.

And Dr Markham admitted Spurs' plans to build a new 61,000 all-seater stadium will prove important in helping the north London side continue to keep increasing their value, similar to Chelsea.

"It [the new stadium] will have a positive effect on Tottenham’s valuation," he said. "Having alternative revenue streams such as NFL matches would also be a big plus."

The research also found that Manchester United were the most valuable football club in England with a worth of nearly £2bn, with the Red Devils enjoying a 74 per cent rise in their value over the past two years.

Although Dr Markham admitted the London clubs can do more to catch up with the Red Devils, he conceded United were likely to remain the benchmark when it comes to financial value.

After being asked how Arsenal, Chelsea and Tottenham could realistically challenge United in the value stakes, he said: "Upping revenue, and ultimately profitability, is the key to upping value.

"In terms of English clubs, no club is better at generating commercial revenue than Manchester United. Manchester United has more than 150 sales and marketing staff in Manchester, London, New York and Hong Kong.

"Along with Real Madrid, Barcelona and Bayern Munich, United’s commercial performance is the benchmark for Arsenal, Chelsea and Tottenham to aim for if the clubs want to complete on a truly global scale financially.

"However, over-commercialisation of clubs can also drive fans away from football."

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