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Man United No Longer Football’s Most Valuable Brand

Wed 29th May 2013 | Money & Finance

An annual study from leading brand valuation agency, Brand Finance which ranks the world's biggest football clubs by their brand value has placed Bayern München ahead of Manchester United to become the world's most valuable football club brand.

Impressive financials and a growing international reputation for quality football has seen Bayern's brand value hit $860m, demoting United to second place.

Despite United's legions of international fans and reclamation of the Premier League title, a truncated European campaign and an uncertain future following Sir Alex Ferguson's departure sees the club’s brand value fall 2%. United’s loss of the top spot may prove temporary but to reclaim the title David Moyes must rapidly prove he can sustain his predecessor’s success.

Meanwhile, defeat on Saturday didn't take the shine off Borussia Dortmund's stellar year. Jurgen Klopp's team achieved 14% brand value growth to $260m which sees the club enter the top ten for the first time at the expense of close rivals Schalke 04.

Fussball may be coming home, but the Bundesliga still has a way to go before it is can mount a real challenge to the global allure of Premier League. The combined brand value for Bundesliga teams in the BrandFinance® Football 50 is $1.9bn, a long way behind the $3.1bn total for the English teams featured in the study.

Spanish, Portuguese and Italian football again sees tough economic conditions hamper growth. It was not such a ‘special one’ for Real Madrid, but the club still managed to increase its brand value to $621m. Rival El Classico club Barcelona saw $8m cut from its brand value, a disappointing year by its high standards.

Juventus FC and SSC Napoli both continued their return to form at the expense of FC Internazionale Milano who take another dip after a poor season. AC Milan also struggled as the Milan Contingent grapples with aging stadia, falling attendances and crowd trouble.

Elsewhere Turkish and Brazilian brands made great strides thanks to their booming economies and passionate domestic fanbases. Galatasaray AŞ are the highest ranking Turkish team valued at $116m, while SC Corinthians Paulista ($103m) take the honour of highest ranking non-European club.

Average brand growth across the top 50 is a healthy 7%. Attendances have remained solid, with many top teams filling their stadiums week-in week-out coupled with long season ticket waiting lists.

There are now 10 different kit suppliers to the top 50 clubs in this hotly contested and increasingly lucrative marketplace. Adidas lead the pack with 18 supplier contracts while Nike follows with 14 deals. Both however are feeling the pressure of new market entrants Warrior and Under Armour.

Commenting on the results, Brand Finance’s Head of Sports Valuation, Dave Chattaway stated, “Bayern Munich is still very much a story of domestic dominance, however its continued presence in the Champions league has provided the club with access to a global audience. The challenge now for all Bundesliga clubs and the league itself, is to see if they can export their domestic brand strength into global opportunities.”

Brand Finance CEO David Haigh commented, “The commercial transformation of the English game, which has created hugely successful global brands, had been seen as the model to emulate.

“However the escalation of player wages, poor financial management and alienation of grass roots fans has left many people jaded. In contrast the cheap tickets, high attendances, democratic ownership structure and financial prudence of the Bundesliga now looks like an attractive alternative, particularly now it is delivering world-beating, fluid football rather than the more workmanlike style German teams had been known for.

“Just as British politicians and business journalists have long been calling for our economy to emulate the German Mittelstand, now sports commentators are wondering whether we can learn from the Bundesliga.”

The Brand Finance Football 50

The World’s Most Valuable Football Brands


Rank 2013

Rank 2012

Club

Country

Brand Value 2013 (USD m)

Brand Value 2012 (USD m)

Change (%)

Brand Rating

1

2

FC Bayern München

Germany

860

786

9%

AAA

2

1

Manchester United FC

England

837

853

-2%

AAA+

3

3

Real Madrid CF

Spain

621

600

4%

AAA+

4

4

FC Barcelona

Spain

572

580

-1%

AAA

5

5

Chelsea FC

England

418

398

5%

AA

6

6

Arsenal FC

England

410

388

6%

AA+

7

7

Liverpool FC

England

361

367

-2%

AA

8

8

Manchester City FC

England

332

302

10%

AA-

9

9

AC Milan

Italy

263

292

-10%

AAA-

10

11

Borussia Dortmund

Germany

260

227

15%

AA

11

10

FC Schalke 04

Germany

259

266

-3%

AA-

12

12

Tottenham Hotspur FC

England

219

225

-3%

AA

13

16

Juventus FC

Italy

180

160

12%

AAA-

14

14

AFC Ajax

Netherlands

162

184

-12%

AA

15

13

FC Internazionale Milano

Italy

151

215

-30%

AA+

16

17

Hamburger SV

Germany

144

153

-6%

AA

17

NEW

Galatasaray AŞ

Turkey

116

na

na

A+

18

15

Olympique de Marseille

France

111

168

-34%

AA-

19

24

SC Corinthians Paulista

Brazil

103

77

34%

AA

20

22

SSC Napoli

Italy

101

85

20%

AA-

21

18

Olympique Lyonnais

France

101

120

-16%

AA-

22

NEW

Fenerbahçe SK 

Turkey

95

na

na

A+

23

36

Bayer 04 Leverkusen

Germany

90

64

41%

AA-

24

38

Paris Saint-Germain FC

France

85

64

34%

A+

25

28

VfB Stuttgart

Germany

83

71

18%

A+

26

31

Valencia CF

Spain

83

68

22%

AA-

27

32

VfL Wolfsburg

Germany

82

66

25%

A

28

21

AS Roma

Italy

82

85

-3%

AA

29

29

West Ham United FC

England

82

70

17%

A

30

20

Newcastle United FC

England

81

86

-6%

AA

31

19

Aston Villa FC

England

80

87

-8%

AA-

32

30

SV Werder Bremen

Germany

79

68

17%

AA-

33

23

Everton FC

England

78

79

0%

AA-

34

34

Fulham FC

England

75

65

16%

A+

35

33

Sunderland AFC

England

72

66

10%

A+

36

na

Beşiktaş JK

Turkey

71

na

na

A+

37

45

Club Atlético de Madrid

Spain

67

50

34%

AA-

38

NEW

Santos Futebol Clube

Brazil

65

38

70%

AA

39

39

São Paulo FC

Brazil

62

58

6%

A+

40

26

PSV Eindhoven

Netherlands

61

74

-18%

AA-

41

42

Stoke City FC

England

59

55

6%

A+

42

na

SL Benfica

Portugal

56

na

na

A+

43

46

Sevilla FC

Spain

56

49

14%

AA+

44

37

Celtic FC

Scotland

55

64

-13%

AA-

45

47

CR Flamengo

Brazil

55

46

20%

A+

46

44

SC Internacional

Brazil

55

51

8%

A+

47

na

West Bromwich Albion FC

England

54

na

na

A

48

25

FC Girondins de Bordeaux

France

53

76

-30%

A+

49

49

ACF Fiorentina

Italy

52

46

15%

AA-

50

48

SS Lazio SpA

Italy

52

46

12%

AA-

 

 

Methodology

Summary

Brands are included based on their historic origins rather than their current domicile. We calculate Brand Value using the Royalty Relief approach. Brand value is essentially the cost that a third party would have to pay to license the use of a brand. Brand strength analysis is used to determine the royalty rate. Brand strength analysis benchmarks the strength, risk and future potential of a brand relative to its competitors.  This takes into account financial metrics such as revenue mix, revenue growth, football specific marketing metrics – including number of domestic/global honours, squad value, club heritage, UEFA coefficient ranking and average attendance and stadia utliaisation amongst others. Brands are then awarded a brand rating, a letter grade, similar to a credit rating from AAA+ to D. Having been determined based on the brand strength, the royalty rate is then applied to revenue figures to determine the brand value. This means that it may be possible for a fairly weak brand with large revenues to still have a significant brand value while an extremely strong brand, because it caters to a niche market, does not.

 

Posted by: Aaron Gourley

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