According to Brand Finance’s annual report – Football 50 2019 the most valuable and strongest football brands May 2019, Real Madrid’s brand value at present is over €1.6 billion (US$1.79 billion). This amounts to a 26.9% annual growth from 2018 to 2019.
In contrast, Real Madrid brand value has dropped by 6% to €1.472 billion ($ 1.88bn). The change in fortunes meant that Real Madrid returns as the most valuable football brand after nine years. The LaLiga Club has also emerged as the strongest football brand, yet again leaving behind the 20-time Premier League champions Manchester United.
Brand Finance’s methodology takes in factors such as match day revenue, broadcast revenue and commercial revenue. It then produces a Brand Strength Index (BSI) score out of 100 and uses this to extrapolate future revenue estimations using royalty rates.
The combination of commercial revenues and on pitch success in the UEFA Champions League has propelled Los Blancos to the pinnacle of the value pyramid. Real Madrid received €70 million (US$78.4 million) from sponsors Emirates and €110 million (US$123.2 million) from Adidas, whilst their match day revenues totalled €143 million (US$160.2 million).
Bryn Anderson, Brand Finance director, said: “Real Madrid have shown this year who truly reigns supreme in the world of football. They triumph not only as the most valuable and strongest brand but their enterprise value and stadium are also ranked second to none.”
Barcelona are in third spot in terms of brand value, followed by Bayern Munich and then Manchester City, who head Liverpool.
Chelsea, Arsenal and Tottenham Hotspur make up six of the top 10 clubs with PSG trading places with Arsenal to go eight in the ranking. The most notable absentee from the top 10 is Italy’s Juventus.
The report explained how poor results and uninspired play have hurt United’s value:
“Manchester United have disappointed in recent years on the playing field both in the Premier League and in the UEFA Champions League. Public perceptions of the brand have deteriorated as Manchester United ranks only 18th among the sample of the world’s top clubs with regards to ‘playing exciting football’, as revealed by Brand Finance’s original fan research.”
Looking at the top 50 ranking the dominance of the Premier League is evident with 17 clubs making up 43% of total brand value, point out the report authors. They also highlight that the Bundesliga follows closely behind the Premier League with 13 clubs in the top 50, but collectively their brand value ranks behind LaLiga.
The report highlights the following points:
- Real Madrid knock Manchester United off the top spot of the Brand Finance Football 50 ranking to become 2019’s most valuable club brand at €1.646 billion (US$1.79 billion).
- Real Madrid also triumph as the strongest football brand, the club has the highest enterprise value in the world of football, and the Santiago Bernabéu tops the stadia performance ranking.
- The Premier League is the most widely followed national competition across key European markets, as English clubs dominate the ranking with 17 entrants and 43% of total brand value. Bundesliga follow closely with 13 clubs but rank behind LaLiga for combined brand value.
- Wolverhampton Wanderers are the most valuable new entrant to the Brand Finance Football 50 this year, ranked 28th – above Ajax, Sevilla, and Celtic.
The Premier League also saw a 6.9 per cent increase in brand value, ensuring it sat atop the ranking for yet another year. La Liga overtook the German Bundesliga after a 23.3 per cent growth but still sit nearly €5 billion (US$5.6 billion) behind the Premier League in value.
CLICK HERE for full report.