LONDON, 17 July 2024 – Al-Ain FC is top of the league as the strongest football club brand from the UAE, in the first time that Emirati football brands have been included as part of the global Brand Finance Football 50 report. The report ranks the world’s most valuable and strongest football club brands from across the world and is issued annually by Brand Finance, the world’s leading brand valuation consultancy.
Al-Ain FC's remarkable journey continues as it ranks as the strongest football club brand in the UAE with a brand strength index of 70.5. The club's recent triumph in the Asian Champions League, winning the prestigious title for the second time, highlights its dominance and unique achievement as the only UAE club to have secured this international accolade. This victory solidifies Al Ain's reputation and appeal, both regionally and globally.
Ranked as the second strongest football club brand in the UAE with a brand strength index of 64.8, Al-Nasr SC is perceived as leveraging its rich heritage to attract top talent and challenge for titles. The club's recent marquee signing of Ali Mabkhout, the league's all-time top goal scorer, is a testament to its ongoing ambition and competitiveness. Al-Nasr SC's ability to draw star players underscores its robust brand appeal and commitment to excellence.
Sharjah FC (BSI 62.9) follows close behind in third place, while Al Wasl FC (BSI 62.0) and Al Wahda FC (60.7) follow in fourth and fifth place, respectively. These clubs have demonstrated significant growth and potential, with significant ambitions for further future growth.
“Al-Ain FC tops the UAE's football brands with their Asian Champions League win, signalling the UAE's football dominance. Star signings and global victories, including Manchester City's UEFA triumph, showcase the UAE's rapid rise in the football world.”
Andrew Campbell, Managing Director, Brand Finance Middle East
In addition to the domestic achievements, UAE's investment in global football has yielded strong results. Manchester City's UEFA Champions League victory, backed by UAE investment, marked the first European triumph for a state-backed club. Owned by H.H. Sheikh Mansour bin Zayed Al Nahyan, this success highlights the strategic vision and influence of UAE investment in global football.
Real Madrid (brand value up 16% to EUR1.7 billion) has reclaimed its title as the world’s most valuable football club brand, surpassing 2023’s winner Manchester City FC, which saw a smaller growth of 7% to EUR1.6 billion and now holds 2nd place. FC Barcelona (brand value up 12% to EUR1.5 billion) has retained 3rd place in the ranking despite ongoing financial challenges.
With a brand strength index (BSI) score of 96.3/100 and an AAA+ rating, Real Madrid is not only the world's strongest football club brand but also ranks among the strongest brands globally, surpassing renowned names like Google, Coca-Cola, Ferrari, and Rolex. The club’s exceptional brand strength derives from its perfect scores across several metrics in Brand Finance’s research, including squad investment, stadia, and sponsorships. Real Madrid’s strategic investments in star players like Kylian Mbappé and Jude Bellingham are expected to further boost record-breaking revenue through increased matchday and merchandise sales, while enhancing global visibility and fan engagement.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
