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The world’s most valuable football brands 2016

by on June 7, 2016 in Entertainment, Latest News, Lead Article, Lead story, News you can use, Retail, Rock 'n Roll

Every year, brand valuation and strategy consultancy Brand Finance conducts a unique study, calculating the brand strength and value of the world’s leading football club brands. The results are published in the Brand Finance Football 50.

Manchester United tops the table again with a brand value of US$1.17bn (£793 million). A relatively weak, fifth place league finish meant failure to qualify for the Champions League and saw Louis Van Gaal sacked. However a first FA Cup triumph in over a decade and forecasts of continuing revenue growth softened the blow.

The new Premier League broadcasting deal saw the rights to the next three seasons’ games divided between Sky and BT Sport for over £5.1 billion, a 71% increase on the previous period, boosting the brand values of all premier leagues clubs and keeping United just ahead of a resurgent Real Madrid.

United may be number one, but Leicester have even more to celebrate. The Foxes’ remarkable on-pitch performance has translated into a commercial fairy tale too. In just one year, the club’s brand strength score has increased by 13 points, while brand value is up 132%. Its brand value of US$237 million (£160 million) puts Leicester 16th globally, up from 42nd in 2015. At the beginning of the decade Leicester languished in the third tier of English football. As recently as 2012, sponsorship revenue stood at just £5.2 million. Revenues were £32 million in 2013/14 and £104 million in 2014/15, reflecting the cachet of Leicester’s new found Premier League status. This year’s unprecedented title win, it is estimated, will see Leicester receive an additional £150 million.

A club’s brand value is calculated by combining brand strength with revenue data across three major streams; commercial, broadcasting and matchday. With a capacity of 32,000, Leicester’s King Power stadium is one of the Premier League’s smallest, so matchday revenues are likely to grow only slightly.

The same can be said for commercial revenues from merchandise as, despite Leicester’s Thai ownership and success this year, clubs such as Liverpool, Manchester United and Chelsea still hold sway in Thailand and wider Asia. In the short term, Leicester newfound riches will flow from sponsors thronging to the club to capitalise on the club’s global visibility and heroic story as well as vast broadcasting revenues from the Premier League and Champions League, which will deliver a minimum of £20 million and likely significantly more.

Brand Finance Chief Executive David Haigh comments, “Leicester’s success is something their existing sponsors will only have dreamed of and their return on investment has been spectacular. Armed with a thorough understanding of what its brand is really worth to potential sponsors, Leicester will now need to carefully manage the flood of offers and opportunities it receives to both maximise revenue and create partnerships that will reinforce the club’s brand as well as its bottom line.”

Real Madrid’s brand value is also in the ascendant after the club claimed yet another Champions League title, “La Undécima”. In his short tenure, Zinedine Zidane has delivered on-pitch success, but just as significantly, is a fan favourite whose presence reinforces Real’s image as the natural home of football’s biggest stars. Though no longer a player, he is undoubtedly a Galactico. The forthcoming renegotiation of La Liga’s TV rights, a massive €140m / year kit deal with Adidas and an AAA+ brand whose strength continues to grow, mean that Real’s brand value is up £251 million to US$1.15 billion (€1.06 billion).

The World’s Most Valuable Football Brands

Rank 2016 Rank 2015 Brand name Domicile Brand Value 2016 (USDm) Brand Value Change (%) Brand Value 2015 (USDm) Brand Rating 2016 Enterprise Value 2016 (USDm)
1 1 Manchester United FC UK 1170 -3% 1,206 AAA 3371
2 3 Real Madrid CF Spain 1148 32% 873 AAA+ 3355
3 6 FC Barcelona Spain 993 28% 773 AAA+ 3257
4 4 Manchester City FC UK 905 13% 800 AAA- 2349
5 2 FC Bayern Munchen Germany 867 -7% 933 AAA+ 2753
6 7 Arsenal FC UK 858 22% 703 AAA 2482
7 9 Paris Saint-Germain FC France 792 46% 541 AAA- 2363
8 5 Chelsea FC UK 776 -2% 795 AAA- 2393
9 8 Liverpool FC UK 748 30% 577 AAA 1991
10 10 Tottenham Hotspur FC UK 441 23% 360 AA+ 1166
11 11 Juventus FC Italy 287 -18% 350 AAA 486
12 12 Borussia Dortmund Germany 280 -14% 326 AAA- 401
13 15 Everton FC UK 279 22% 228 AA+ 667
14 16 West Ham United FC UK 274 31% 209 AA- 650
15 23 Club Atletico de Madrid Spain 266 77% 151 AA+ 731
16 42 Leicester City UK 237 132% 102 AA 554
17 18 Southampton FC UK 223 22% 183 AA- 582
18 13 FC Schalke 04 Germany 223 -26% 302 AA+ 732
19 26 Stoke City FC UK 212 52% 140 AA- 523
20 14 AC Milan Italy 207 -15% 244 AA+ 979
21 37 West Bromwich Albion FC UK 184 60% 115 AA- 511
22 29 Sunderland AFC UK 180 35% 134 AA- 515
23 30 Crystal Palace UK 176 33% 133 A+ 522
24 28 Bayer 04 Leverkusen Germany 175 30% 135 AA 547
25 27 Swansea City UK 175 29% 135 A+ 542
26 45 Borussia Munchengladbach Germany 173 101% 86 AA- 627
27 41 Hamburger SV Germany 152 48% 103 AA 402
28 20 FC Internazionale Milano Italy 151 -6% 160 AA+ 722
29 38 Olympique Lyonnais France 138 24% 111 AA 322
30 35 AS Roma Italy 131 12% 117 AA+ 345
31 31 Olympique de Marseille France 129 0% 129 AA 367
32 22 Newcastle United FC UK 129 -17% 155 AA 684
33 17 AS Monaco France 124

Settawat Udom / Shutterstock.com

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