Investments in star players, stadiums, and infrastructure enhancing competitiveness of Saudi Pro League and improving nation brand image, new Brand Finance data highlights
LONDON, 17 July 2024 - Al-Hilal SFC is Saudi Arabia’s strongest football club brand with a brand strength index (BSI) score of 79.6, and an equivalent AA+ rating, according to new data from Brand Finance. Al-Hilal's strategic investments, including the signings of Neymar, Ruben Neves, and Milinković-Savić, have solidified the club’s dominance in the Saudi Pro League and reinforced its status as a top football brand in the region. Notably, Neymar has drawn global attention to the club with his high-profile status, making him one of the most followed athletes on social media. As such, the club notes a strong score for its star players, as well as perfect scores for having passionate fans, and a ‘cool’ brand image.
Al-Nassr FC is the second-strongest Saudi football club brand with a BSI score of 74.0/100 and an AA rating. The club's score for star players is notably bolstered by signing footballing legend Cristiano Ronaldo, leading to unprecedented global attention and social media growth. Ronaldo is the world’s most followed person on Instagram – with 630 million followers. As such, the club scores strongly in terms of brand perceptions, noting perfect scores for its passionate fanbase and cool’ brand image. Behind Al-Nassr FC, Al-Ittihad Club follows as the third strongest football club brand with a BSI score of 70.4/100, having bolstered its brand image through key signings like Karim Benzema and Ngolo Kante.
"Saudi Arabia's financial commitment to football in recent years has attracted globally renowned stars like Neymar, Ronaldo, and Benzema, enhancing the nation’s competitiveness on an international scale and boosting the brand image of Saudi’s top clubs. This transformation of the Saudi Pro League, fuelled by substantial investments in salaries, infrastructure, and stadiums, has also strengthened the league’s sponsorship deals, broadcasting rights, and matchday revenues, generating increased interest from both local and global audiences. These strategic investments are set to position Saudi Arabia as a major hub for top-tier football in the coming years."
Savio D’Souza, Senior Director, Brand Finance
Notably, the top three strongest Saudi football club brands also perform strongly in the ESG metrics of Brand Finance’s research, noting high scores for being a positive force in the local community and for being sustainable and positive for the environment. Al-Hilal, Al-Nassr, and Al-Ittihad are expanding their corporate social responsibility programmes, focusing on youth development, health promotion, and environmental sustainability to further solidify their brand image and positive perceptions.
Saudi Arabia's investment in football is reshaping the sport's landscape in the country, aligning with the country’s Vision 2030 objective which aims to enhance the nation’s brand and sporting image on an international scale. Brand Finance data suggests that these sporting investments are paying off, with Saudi Arabia jumping up 28 ranks for the attribute of being a ‘leader in sport’ in Brand Finance’s latest Global Soft Power Index. Further, women’s football, previously non-existent due to legal and cultural restrictions, is also developing significantly in the country. Saudi women's national team entered FIFA's rankings and is aiming to qualify for major international tournaments, reflecting growing female interest and attendance in Saudi 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.
