Premier League squad values increasing at fastest rateI

Premier League squad values increasing at fastest rate in European football

Research by Alliance Fund, the sport investment fund, reveals that, among Europe’s top five football leagues, the Premier League has seen the biggest increase in combined squad value since the pandemic, but that increasing the value of a squad doesn’t necessarily mean increased success in England’s top flight.

Alliance Fund analysed the change in combined squad value for Europe’s five biggest football leagues in recent years to see which leagues are most increasing their talent costs, and then analysed squad value for all 20 Premier League clubs to discover if an uptick in spend correlates with an uptick in success on the pitch.

Pandemic drop in squad values
The results show that the pandemic forced clubs in all of Europe’s top five leagues to tighten their belts and reduce the amount they spend on their respective squads.

Between 2019-2020, the combined squad values of the five biggest European football leagues – England’s Premier League, Germany’s Bundesliga, France’s Ligue 1, Italy’s Serie A, and Spain’s La Liga – decreased by -7%, falling from £22.4 billion to £20.9 billion.

The worst hit league was Italy’s Serie A in which combined squad value fell by -9%.

Post-pandemic increase
Since then, however, the combined squad value of all leagues has increased to surpass pre-pandemic levels. The current total value is £24.2 billion which is +8% higher than 2019.

The biggest increase has come in the Premier League where squad value is up 26%.

Ligue 1 (20%) and Serie A (2%) have also seen increases, but squad values across La Liga (-11%) and the Bundesliga (-3%) are yet to surpass pre-pandemic levels.

Annual uplift
The majority of this recovery has come in the past year alone. Since 2022, Premier League squad value is up 24%, while the Bundesliga (10%), Ligue 1 (5%), and Serie A (4%) have also seen increases. La Liga, however, has seen no change in squad value in the past year.

Premier League breakdown
In the Premier League, the most valuable squad is, without surprise, Manchester City. The seemingly unstoppable club’s team of global talent is valued at £917 million.

This is followed by struggling Chelsea (£890.8m), former title contenders Arsenal (£777.2m), and Liverpool (£767.6m).

When it comes to the biggest annual increases, Nottingham Forest tops the list. Their 2023 squad is valued 506.1% higher than in 2022.

Fulham FC (76.6%), Arsenal (74.9%), and Newcastle (74%) have also significantly increased their squad value, and so too have Southampton, but their 53% increase isn’t enough to keep them from sitting last place in the league.

Just two Premier League clubs have lower squad values than last year. They are Everton (-19.1%) and Leicester (-11.9%).

CEO of Alliance Fund, Iain Crawford, commented:

“It’s no secret that money is an essential factor for sustained Premier League success, as we see from the Big 6 clubs also having the six most valuable squads.

However, this research also makes it painfully clear that money alone is no guarantee of matchday success. Look at Chelsea – they have the third-most valuable squad but still can’t break into the top half of the table.

As for rapid cash injections, it’s clear that they can bring instant results, as illustrated by Arsenal and Newcastle United, but again it’s far from guaranteed. Nottingham Forest have increased their squad value five-fold yet can’t escape the relegation zone, while Southampton’s drastic spend increase sees them placed dead-last on the table.

Success is about more than money. It’s about facilities, coaching staff, club culture, and top-quality academies to nurture the best emerging young players. When these things work in perfect harmony, it’s far more influential than collecting the world’s most expensive superstars.”