Bayern Still on Top but Real Relegates Man United To Third
The Brand Finance Football 50, released today, is an annual study conducted by leading brand valuation and strategy consultancy Brand Finance. Football’s biggest clubs are put to the test to determine which command the most powerful and valuable brands.
For several years Manchester United held sway as football’s most valuable brand. However in 2013, Brand Finance anticipated the likely dip in performance and prestige resulting from Sir Alex Ferguson’s departure, allowing Bayern Munich to claim the top spot. With just such a nightmare season having come to pass this year, United’s value has fallen further; the 2014 brand value of $739m is down $98m on last year, its AAA+ brand rating has slipped to AAA and it has fallen into 3rd place as Real reaps the rewards of Champions League victory.
To view the table online, click here. Hover over the ‘I’ button for alternative currencies.
Bayern Still at the Top
Bayern Munich retains its title, with a brand value of $896m. Domestic dominance has kept Bayern in pole position; Pep Guardiola has steered the club to another Bundesliga title (with a record points haul) as well as DFB-Pokal victory over Dortmund. An aggregate 5-0 loss following a pummeling from Real Madrid in the second leg of the Champions league semi final was the only downside to an otherwise stunningly successful season. President Uli Hoeness’s conviction for tax evasion has also taken a little of the shine off the Bayern brand. Only an appreciation in the value of the euro this year has seen the dollar brand value increase.
Real Back on Form
Real Madrid once held sway as the world’s most valuable football club brand with legions of followers the world over. Devotion is such that El Clásico serves as a proxy for political rivalries not just in Catalonia but as far afield as Iraq.
The Euro crisis and Spain’s economic woes contributed to Real’s fall first to second and then third in the Brand Finance Football 50. However revenues remain huge across all three income streams (matchday, broadcasting and commercial) and Spain’s economic outlook is improving. With arguably the finest player in the world in the shape of Ronaldo and now a first Champions League title in ten years, Real’s brand is back on a solid footing.
Real’s AAA+ brand rating remains secure while brand value is up $147m to a total of $768m, the third biggest increase of any club this year. Most significantly, Real has overtaken Manchester United, leading all Premier League Clubs for the first time since 2010. With the highest revenues of any club and the most robust brand, a continuing improvement in the Spanish economy could see Real rapidly reclaim its status as the world’s most valuable football brand.
Unlucky Number 7
United’s 7th place Premier League finish means Chevrolet has had to put the brakes on its plans to use sponsorship of the club as a way to push its brand in Europe. It has decided to pull the brand out of the continent altogether from 2015. “For now, the brand equity founded on years of glory, shrewd commercial management and stewardship of the brand is shielding United from a more dramatic drop. However another season in the wilderness, outside the Champions League, will see brand value truly plunge, and leave few sponsors willing to do a deal with the Devils” commented Brand Finance’s Head of Sports, Dave Chattaway.
The balance of power at the top of the English game is shifting decisively to the blue side of Manchester. City has won the title for the second time in three years and won two trophies just this season. On pitch success is rapidly building the value of the brand; following 53% growth, City’s brand value now stands at over half a billion dollars. Provided it can navigate further significant sanctions for breaches of financial fair play regulations and manage with a restricted squad in Europe, City’s brand could soon be a far more enticing prospect than United’s for sponsors and fickle international fans. Indeed City’s owners are already expanding the brand internationally. In a partnership with the New York Yankees, the New York City MLS franchise was launched last year, incorporating both the ‘city’ name and the same, light blue livery. Melbourne Heart was purchased in January this year with a similar expansion in mind.
At the opposite end of the table, Fulham’s demotion to the Championship has cost it dearly; a 36% brand value drop is the fastest of any club in the top 50. Now in 50th, anything other than promotion next year will see Fulham drop out of the Brand Finance Football 50 for some time to come.
Marque de Triomphe
PSG is this year’s biggest winner. Paris Saint-Germain is beginning to escape the confines of Ligue 1 to become a truly global brand; its brand value has almost quadrupled in a year, up from $85m to $324m (£193m), which sees the club enter the top 10 of the Brand Finance 50 for the first time.
The relative indifference of international audiences to French football (in contrast to the Budesliga, Premier League or La Liga) has limited the potential of French clubs to build their brands. PSG’s phenomenal success since its purchase by the Qatar Investment Authority has forced the world to take notice however. Two successive Ligue 1 titles, a Coupe de la Ligue and greater security of Champions League football than almost any other club in Europe have made PSG impossible to ignore. Zlatan Ibrahimovic’s 30 goal haul has reinforced his position as one of the game’s most respected players, which has translated into significant shirt sales. Though television revenues still lag those of Premier League clubs, an extension of its partnership with Nike, a continuing relationship with the game’s most prominent shirt sponsor Emirates and a new deal with Chinese tech giant Huawei all attest to the growing power and value of the PSG brand.
Football’s Centres of Rivalry – Milan, Manchester and now Madrid
Despite missing out on the Champions League title Atletico’s brand value has also surged; it has nearly doubled from $67m last year to $126m in 2014. Brand Finance has also upgraded Atletico’s brand rating from AA- to AAA-. Victory in La Liga and a stunning Champions League run has broken the duopoly Real and Barca once held over Spanish football and has established Madrid as one of the great cities of footballing rivalry along with Manchester and Milan.
Atletico doesn’t just represent its home city however. It has also put its sponsor Azerbaijan on the map. ‘The land of fire’ oil rich Azerbaijan is not the first country to use football for political and diplomatic purposes. PSG and Man City have benefitted from the wealth of Qatar and Abu Dhabi respectively and have in turn helped to build their nation brands. However Atletico has achieved similar feats for Azerbaijan in just one season and at a fraction of the cost.
Robert Haigh, Communications Director
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About Brand Finance
Brand Finance is the world’s leading brand valuation and strategy consultancy, with offices in over 15 countries. We provide clarity to marketers, brand owners and investors by quantifying the financial value of brands. Brand Finance is independent and conducts all valuations at ‘arms length’ with a transparent methodology (see below) following the principles of the ISO 10668 brand valuation standard.
Note to Editors
Brand values are calculated in USD to aid comparisons between different leagues and with other commercial brands. 2013 values are set at May 20th 2013 and 2014 values at May 20th 2014. The appreciation of the £ and € in the last year has given a boost to the clubs’ US$ brand values. Please consult the official results on our website for the correct values for 2014 and 2013 in alternative currencies.
Brand value is essentially the cost that a third party would have to pay to license the use of a brand. Brand strength analysis is used to determine the royalty rate that would have to be paid in that scenario. Brand strength analysis benchmarks strength, risk, longevity and future potential of the brand relative to competitors. This takes into account financial metrics such as revenue mix and growth, football specific marketing metrics such as honours, squad value, club heritage, Kickdex data, UEFA coefficient ranking and average attendance amongst others. Brands are then awarded a brand rating, a letter grade, similar to a credit rating from AAA+ to D. Having been determined based on the brand strength, the royalty rate is then applied to revenue figures to determine the brand value.
For further detail on how Brand Finance’s brand valuations are conducted, click here.