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In today's #ThursdayThoughts thread ⬇️ the valuation of football clubs.

According to Statista, @AlAhly is Africa's most valuable club at €25.53 million with @Masandawana being SA's most valuable at €18.98 million (R376 million)

Here's how these values are arrived at.
This review cites the various valuation models used but mostly looks at the Multivariate Model which is most commonly used worldwide and was developed by Tom Markham in 2013.

We begin with the other models and how they work.
Market capitalisation:

A company’s share price
is multiplied by the number of shares in issue to provide the market capitalisation or company
valuation

An obvious problem is only clubs floated on an exchange can be valued reliably using market capitalisation.

ie ⬇️
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