For the first time, the brand values of all major sports teams worldwide have been calculated and compared. The BrandFinance® Sporting Brands 2012 was compiled by Brand Finance plc, the world’s leading brand valuation consultancy. 250 teams are included, from the NFL, NHL, NBA, MLB, IPL and international football leagues, the full table can be found here.
Brand value quantifies the success and fan loyalty of a franchise. The Cowboys, because of their huge commercial scale, have the highest brand value. On the other hand the Packers might have a much smaller catchment area and fewer fans, but their ‘everyman’ appeal and the fanaticism of their supporters have secured the highest US brand rating (AAA).
Commenting on the results Brand Finance USA Managing Director Elise Neils stated, “While the NFL has faced a number of challenges to its brand, it continues to enjoy strong revenues. It is supported by the strength of key individual team brands such as the Cowboys, Patriots and Packers and their loyal fans.”
The Yankees are the most valuable MLB brand thanks to their powerful heritage, New York location and growing international fan-base. Their $398m brand value is nearly double that of nearest MLB rival the St Louis Cardinals. The LA Lakers have the most valuable brand in the MBA, at $205m, thanks to the glamour and winning aura of the team.
In contrast to the success of the other leagues, the NHL has lost nearly half a billion dollars of brand value. Labor strife with the NHLPA has substantially raised the risk profile for the NHL, reducing the total brand value of its teams from $1.6bn to $1.15bn. As a result there are only two NHL franchises in the global top 100 with Montreal Canadiens 81st and Toronto Maple Leafs 82nd.
Commenting on the results Brand Finance Canada Managing Director Edgar Baum stated, “The NHL's frequent strikes and lockouts have resulted in more missed games than any of the other major leagues in North America. The gains in brand value made over the past six years have been jeopardized by interruptions in the delivery of hockey to fans, sponsors, and media.”
BrandFinance® Top 5 Most Valuable MLB Brands
|
MLB Rank 2012 |
Team |
Brand Value (US$ m) |
Brand Rating |
|
1 |
New York Yankees |
398 |
AA |
|
2 |
St. Louis Cardinals |
213 |
AA- |
|
3 |
Philadelphia Phillies |
207 |
AA- |
|
4 |
Boston Red Sox |
205 |
BBB+ |
|
5 |
Los Angeles Dodgers |
187 |
BBB+ |
BrandFinance® Top 5 Most Valuable NFL Brands
|
NFL Rank 2012 |
Team |
Brand Value (US$ m) |
Brand Rating |
|
1 |
Dallas Cowboys |
510 |
A+ |
|
2 |
New England Patriots |
500 |
AA |
|
3 |
New York Giants |
471 |
AA |
|
4 |
Green Bay Packers |
460 |
AAA |
|
5 |
Pittsburgh Steelers |
410 |
AA+ |
BrandFinance® Top 5 Most Valuable NBA Brands
|
NBA Rank 2012 |
Team |
Brand Value (US$ m) |
Brand Rating |
|
1 |
Los Angeles Lakers |
205 |
AA |
|
2 |
New York Knicks |
178 |
BBB+ |
|
3 |
Miami Heat |
157 |
BBB+ |
|
4 |
Chicago Bulls |
143 |
A |
|
5 |
Dallas Mavericks |
137 |
A |
BrandFinance® Top 5 Most Valuable NHL Brands
|
NHL Rank 2012 |
Team |
Brand Value (US$ m) |
Brand Rating |
|
1 |
Montreal Canadiens |
108 |
A+ |
|
2 |
Toronto Maple Leafs |
105 |
BBB+ |
|
3 |
New York Rangers |
83 |
A |
|
4 |
Vancouver Canucks |
81 |
BBB+ |
|
5 |
Chicago Blackhawks |
52 |
A |
Notes for Editors
The valuation date for the BrandFinance® Sporting Brands 2012 is 1st June 2012. The working definition of ‘brand’ used is, “trademark and associated intellectual property.” Incorporating data from all listed companies globally, each brand is accorded a brand rating (a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set) as well as a brand value (a summary measure of the financial strength of the brand). Brand Finance uses the Royalty Relief method to analyse the royalties that a corporation would have to pay to license its brand if it did not own it.
About Brand Finance
Brand Finance plc, the world’s leading brand valuation consultancy, advises strongly branded organisations on maximising their brand value through effective management of their brands and intangible assets. Founded in 1996, Brand Finance has performed thousands of branded business, brand and intangible asset valuations worth trillions of dollars.
Brand Finance is headquartered in London and has a network of international offices in over 20 countries. For further information, please visit the Brand Finance Website.
Media Enquiries
UK & International
Robert Haigh
Communications Manager
T: +44 (0) 20 7389 9400
M: +44 (0)7762211267
US
Elise Neils
Managing Director
Brand Finance (USA)
T: 312 256 3845
M: 312 671 2340
Canada
Edgar Baum
Managing Director
Brand Finance (Canada)
M: +1 647 922 6238
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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.
