Brand Finance data reveals the winning strategies as football clubs invest heavily in brand management to capture $40 billion global sponsorship market
LONDON, 17 July 2024 – Real Madrid (brand value up 16% to EUR1.7 billion) is once again the world’s most valuable football club brand, surpassing 2023’s winner Manchester City FC, (brand value up 7% to EUR1.6 billion) according to new data from Brand Finance, the world’s leading brand valuation consultancy.
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.
Football club brands are an increasingly valuable asset as companies pour billions into team sponsorships. The global football sponsorship market was valued at USD39.3 billion in 2023 and is projected to be worth USD57.9 billion by 2032.
Hugo Hensley, Head of Sports Services at Brand Finance, commented:
“With global football sponsorship forecast to be worth nearly USD58 billion in less than a decade, football clubs are investing in their brands’ strength and value, aiming to capture a piece of this lucrative and growing market. Brand Finance’s data shows that club’s commercial income is correlated to the strength of the brand, especially at the top of the pile. Real Madrid’s return to the top of the Brand Finance 2024 Football 50 ranking is a testament to the club’s powerhouse brand management, and sponsorships such as their 8-year megadeal with Adidas help to strengthen Real Madrid’s status as the most valuable football club brand in the world.”
Manchester City FC follows Real Madrid as the second-most valuable football club brand, following a year of exceptional on-pitch success. In late 2023, City became the first English club to hold the Premier League, FA Cup, UEFA Champions League, UEFA Super Cup, and FIFA Club World Cup titles simultaneously. This historic achievement has significantly increased commercial and matchday revenue, enhancing the club's financial power. Manchester City's BSI score also improved to 92.8/100, earning an AAA+ rating.
Hugo Hensley, Director at Brand Finance, commented:
“Brand Finance research found that Manchester City FC excels in attributes including its ambitiousness, passionate fanbase, and effective management under Pep Guardiola's widely praised leadership. Star players like Erling Haaland and Phil Foden have further boosted the club’s marketability and on-field performance, solidifying Manchester City's status as a global football powerhouse.”
FC Barcelona (brand value up 12% to EUR1.5 billion) remains the world’s third-most valuable football brand despite facing significant financial challenges, notably its restricted salary cap. This cap severely restricts Barcelona's ability to sign and retain top players for the upcoming 2024/25 season, potentially affecting its on-pitch performance, competitiveness, and appeal to sponsors. That said, FC Barcelona’s youth academy La Masia has been instrumental in producing star talent for the club without massive spending on expensive transfers, with young talents like Lamine Yamal, Pau Cubarsi, and Fermin Lopez bolstering the club’s competitiveness. As such, FC Barcelona has noted a slight increase in its BSI score to 92.7/100, underscored by strong scores for its star players, passionate fanbase, and rich history and heritage.
The English Premier League has the most clubs (17) featured in the Top 50 ranking, as well as by far the highest value of any league, at EUR8.1bn compared to LALIGA’s EUR4.5bn in second place. Six of these clubs feature in the top 10, with Manchester United FC (brand value up 3% to EUR1.4 billion) and Liverpool FC FC (brand value up 1.5% to EUR1.4 billion) retaining 4th and 5th positions respectively. Arsenal FC, Tottenham Hotspur FC, and Chelsea FC retain 8th, 9th, and 10th ranks, respectively.
Liverpool is also the world’s second-strongest football brand, with its BSI score rising to 93.7/100, commanding an equivalent AAA+ rating. The Reds have seen improvements over Klopp’s reign, not just in sporting metrics, but significantly in ESG areas too. ‘The Red Way’ initiative, established to drive the club’s sustainability goals, has clearly resonated with fans, as the brand is perceived as the strongest in its league in all three key metrics; committed to environmental sustainability, being a positive force in the community, and being ethically owned and governed.
French powerhouse Paris Saint-Germain FC (PSG) (brand value up 7% to EUR1.2 billion) has dropped one position overall to rank in 7th, with German club FC Bayern Munich (brand value up 12% to EUR1.2 billion) now inching ahead in 6th. Notably, the departure of global superstars Messi, Neymar, and Mbappé is expected to impact the club’s commercial outlook, potentially leading to reduced merchandise sales, decreased sponsorship values, and a possible decline in international fan engagement. That said, PSG's strong on-field performance continues to drive its global reputation, underscored by a considerable increase in its BSI score to 86.2/100.
German football club Bayer 04 Leverkusen (brand value up 72% to EUR 333.6 million) saw the biggest brand value increase in the table, as well as a significant 9-point rise in its brand strength index to 70.5/100. The club achieved historic milestones in 2024, winning its first Bundesliga title and the German Cup. These accomplishments have boosted the club’s brand image, noting strong scores for being ambitious, playing exciting football, and having a passionate fanbase. The club also notes a high score for being well managed, bolstered by the leadership of former footballer Xabi Alonso. The club will play in the Champions League next year, further boosting exposure and revenues, and helping to cement a legendary period in the club’s history.
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.
