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Cowboys beat Patriots in Brand Value Clash

26 October 2012
This article is more than 8 years old.
  • The Dallas Cowboys have the most valuable US sports team brand at $510m
  • The publicly owned Green Bay Packers are the only AAA rated US team
  • NFL teams have the highest average brand values of any sport
  • NHL brand values have been hit hard by the player lockout

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

[email protected]

US

Elise Neils

Managing Director

Brand Finance (USA)

T: 312 256 3845

M: 312 671 2340

[email protected]

Canada

Edgar Baum

Managing Director

Brand Finance (Canada)

M: +1 647 922 6238

[email protected]

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Media Contacts

Konrad Jagodzinski
Konrad Jagodzinski
Communications Director
Brand Finance
Florina Cormack-Loyd
Florina Cormack-Loyd
Senior Communications Manager
Brand Finance

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations 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 nearly 100 reports which rank brands across all sectors and countries.

Brand Finance is a regulated accountancy firm, leading the standardisation 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.

Methodology

Definition of Brand

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

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 Valuation Approach

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.

Disclaimer

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.

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