A brand’s power/strength is assessed based on metrics such as stadium capacity, squad size and value, social media presence, on-pitch performance, fan satisfaction, fair-play rating, stadium utilization, and revenue – to create a ‘Brand Strength Index’ (BSI) score out of 100.
This is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity and discounted to determine the brand’s value.
Valuation and strategy consultancy “Brand Finance” has compiled a list of the 50 most valuable clubs in the footballing world.
“It is becoming increasingly important for clubs, no matter what their size, to recognise the value of their brands. Enduring fan loyalty, ever-increasing income from broadcasting rights and the deep pockets of owners can mean that brand is overlooked as an opportunity to maximise revenue by some major clubs,” says David Haigh, CEO, Brand Finance.
Real Madrid’s victorious season sees them on top of their rivals Barcelona. Real’s Brand Strength Index score is up from 94.6 to 96.1, edging ahead of Barcelona on 95.4.
However, it still trails behind Manchester United. Despite finishing a dissappointing sixth on the premier league table and then taking their chances of Champions League through Europa League final win over Ajax, the Red devils are the most valuable football brand in the world.
According to the report, Premier League clubs continue to lead the world when it comes to commercialising their brands; six of the top ten most valuable football brands are English.
Title rivals Chelsea and Tottenham have recorded some of the biggest gains this year. Chelsea regain its status as England’s best under dynamic new manager Antonio Conte. Commercially, Chelsea stand to gain significantly through a reported £900 million, 15 year deal with Nike. And from a near 50% increase in the capacity of Stamford Bridge. Tottenham is also expanding its home; the new White Hart Lane has been innovatively designed and will offer 61,000 spectators the opportunity to see Spurs on home turf. Tottenham’s brand value is up 58% on last year and Chelsea’s 61% to US$1.248 billion.
To read the full report click here.