Manchester City usurp Manchester United as Premier League's most valuable club, according to report

Reigning champions worth £2.364 billion based on research conducted by the University of Liverpool’s Centre for Sports Business

Manchester City are engaged in a tight battle with Liverpool for the Premier League title. EPA

Premier League title holders Manchester City have been named the most valuable club in English football, according to a report.

Manchester City, owned by UAE deputy prime minister Sheikh Mansour bin Zayed, is worth £2.364 billion (Dh11.31bn), overtaking their local rivals Manchester United (worth £2.08bn) for the first time. This is despite United making £90 million more in revenue.

The research was conducted by the University of Liverpool’s Centre for Sports Business into the football clubs’ worth in the 2017/2018 financial year.

“The ownership model of Sheikh Mansour, which effectively means that the club is debt free, means that there are no loan interest costs and no dividends are paid to shareholders either,” the reports authors said.

Third in the Premier League table Tottenham Hotspur are also third in the value standings, worth £1.83bn.

Liverpool and Chelsea were valued equally at £1.615bn, while Arsenal came in sixth worth £1.368bn.

The report showed a stark difference between the top six clubs and the rest of the teams in the Premier League.

No other Premier League club broke the £1bn mark, with seventh place Burnley being valued at £398m, £970m behind sixth place Arsenal.

"[The top six's] dominance of revenue streams is likely to ensure that the gap between themselves and the remaining clubs in the Premier League is maintained," the report’s authors said.

The overall value of all the clubs in English football’s top division fell by 1.6 per cent to £14.7bn in 2017/2018.

Manchester City and Liverpool are currently fighting for the Premier League title with just two games to go. City are ahead on 92 points but Liverpool, who last won the title in 1990, are following closely behind on 91.

Research conducted by the UK-based thinktank Centre for Economics and Business Research (CEBR) earlier this year said competing in a trophy race can be worth hundreds of millions for the football club’s home city.

The research said Manchester could gain an extra £220m for keeping the title in sight throughout the latter stages of the season, while Liverpool could stand to gain an extra £133m.

The economic boost can be attributed to fans spending more on tickets, merchandise, food and drink as they support their local teams, the CEBR said.

Manchester stands to gain more than Liverpool because its economy is larger and the Etihad Stadium has a bigger capacity than Anfield.

Leicester City’s surprise title win in 2016 provided a significant uplift for the local economy, with spending in the hospitality sector up £22.6m.