- Man U overtakes Bayern to become the world's most valuable football club brand
- First club with a brand worth over $1 billion
- Record-breaking deals agreed despite two mediocre seasons, driving up value
- Champions League final victory adds $28 million to Barca's brand value
- But Barca is only 6th, having been overtaken by Chelsea and Man City
- Southampton is the fastest growing brand, up 89% on 2014
Introduction
The Brand Finance Football 50, released today, is an annual study conducted by leading brand valuation and strategy consultancy Brand Finance. Football's biggest clubs are put to the test to determine which command the strongest and most valuable brands.
Billion Dollar Devils
Despite another season without silverware, Manchester United has reclaimed its position at the top of the Brand Finance Football 50, knocking Bayern Munich off the top spot. The Red Devils have become the first billion dollar football brand, with 63% growth bringing total brand value to $1.2 billion.
Champions League Victory can't Stop Barca's Slide
Barca's resounding 3-1 win over Juventus caps a year of stunning successes (including La Liga title and the Copa del Rey) in which the club has made history by becoming the first to win the treble twice. Saturday's game alone added $28 million to Barca's brand value, contributing to a overall increase on 2014 of $151 million dollars, bringing the total value of the brand to $773 million.
However as glorious as Barca's record may be, it simply has not been able to harness its brand to the same extent as rivals Real Madrid (whose brand is $100 million more valuable) or the rapidly growing English teams. Man City and Chelsea have both overtaken it for the first time, pushing Barca into 6th place in the Brand Finance Football 50.
Thanks to sporting success and a squad stacked with legendary figures such as Messi and Neymar, Barcelona actually has the strongest brand of any club, rated AAA+ by Brand Finance. However 'brand strength' only reflects the notional potential of the brand. For a club's brand to generate income a business team that is as star-studded and tactically brilliant as the team on the pitch is required. That is how to build brand value.
Billion Dollar Devils
Despite another season without silverware, Manchester United has reclaimed its position at the top of the Brand Finance Football 50, knocking Bayern Munich off the top spot. The Red Devils have become the first billion dollar football brand, with 63% growth bringing total brand value to $1.2 billion.
Champions League Victory can't Stop Barca's Slide
Barca's resounding 3-1 win over Juventus caps a year of stunning successes (including La Liga title and the Copa del Rey) in which the club has made history by becoming the first to win the treble twice. Saturday's game alone added $28 million to Barca's brand value, contributing to a overall increase on 2014 of $151 million dollars, bringing the total value of the brand to $773 million.
However as glorious as Barca's record may be, it simply has not been able to harness its brand to the same extent as rivals Real Madrid (whose brand is $100 million more valuable) or the rapidly growing English teams. Man City and Chelsea have both overtaken it for the first time, pushing Barca into 6th place in the Brand Finance Football 50.
Thanks to sporting success and a squad stacked with legendary figures such as Messi and Neymar, Barcelona actually has the strongest brand of any club, rated AAA+ by Brand Finance. However 'brand strength' only reflects the notional potential of the brand. For a club's brand to generate income a business team that is as star-studded and tactically brilliant as the team on the pitch is required. That is how to build brand value.
The World's Most Valuable Football Club Brands
| Rank 2015 | Rank 2014 | Club | Country | Brand Value 2015 (US$m) | Brand Rating 2015 | Brand Value 2015 (US$m) | Brand Rating 2014 | Change (US$m) | Change (%) |
| 1 | 3 | Manchester United FC | England | 1206 | AAA | 739 | AAA | 467 | 63% |
| 2 | 1 | FC Bayern München | Germany | 933 | AAA | 896 | AAA | 36 | 4% |
| 3 | 2 | Real Madrid CF | Spain | 873 | AAA+ | 768 | AAA+ | 104 | 14% |
| 4 | 5 | Manchester City FC | England | 800 | AAA- | 510 | AAA- | 290 | 57% |
| 5 | 7 | Chelsea FC | England | 795 | AAA | 502 | AAA- | 293 | 58% |
| 6 | 4 | FC Barcelona | Spain | 773 | AAA+ | 622 | AAA+ | 151 | 24% |
| 7 | 6 | Arsenal FC | England | 703 | AAA | 505 | AAA- | 198 | 39% |
| 8 | 8 | Liverpool FC | England | 577 | AAA- | 469 | AAA- | 108 | 23% |
| 9 | 10 | Paris Saint-Germain FC | France | 541 | AAA- | 324 | AAA- | 217 | 67% |
| 10 | 12 | Tottenham Hotspur FC | England | 360 | AA+ | 248 | AA+ | 111 | 45% |
| 11 | 13 | Juventus FC | Italy | 350 | AAA | 247 | AAA | 103 | 42% |
| 12 | 9 | Borussia Dortmund | Germany | 326 | AAA- | 327 | AAA- | -1 | 0% |
| 13 | 11 | FC Schalke 04 | Germany | 302 | AA+ | 313 | AA+ | -12 | -4% |
| 14 | 14 | AC Milan | Italy | 244 | AAA- | 236 | AAA- | 8 | 3% |
| 15 | 20 | Everton FC | England | 228 | AA | 121 | AA+ | 107 | 88% |
| 16 | 24 | West Ham United FC | England | 209 | AA | 112 | AA- | 97 | 86% |
| 17 | New | AS Monaco | France | 202 | A+ | ||||
| 18 | 30 | Southampton FC | England | 183 | AA | 96 | AA- | 86 | 89% |
| 19 | 17 | Galatasaray AŞ | Turkey | 177 | AA+ | 141 | AA+ | 36 | 26% |
| 20 | 15 | FC Internazionale Milano | Italy | 160 | AAA- | 152 | AA+ | 7 | 5% |
| 21 | 23 | Aston Villa FC | England | 155 | AA | 115 | AA | 40 | 35% |
| 22 | 27 | Newcastle United FC | England | 155 | AA | 102 | AA | 53 | 52% |
| 23 | 19 | Club Atlético de Madrid | Spain | 151 | AA+ | 126 | AAA- | 24 | 19% |
| 24 | 21 | SSC Napoli | Italy | 147 | AA+ | 121 | AA+ | 27 | 22% |
| 25 | 16 | AFC Ajax | Netherlands | 145 | AA+ | 149 | AA+ | -4 | -3% |
| 26 | 41 | Stoke City FC | England | 140 | AA- | 75 | AA- | 65 | 87% |
| 27 | New | Swansea City | Wales | 135 | A | ||||
| 28 | 22 | Bayer 04 Leverkusen | Germany | 135 | AA | 116 | AA | 19 | 16% |
| 29 | 32 | Sunderland AFC | England | 134 | AA | 93 | AA- | 40 | 43% |
| 30 | New | Crystal Palace | England | 133 | A | ||||
| 31 | 33 | Olympique de Marseille | France | 129 | AA | 91 | AA | 38 | 41% |
| 32 | 28 | VfB Stuttgart | Germany | 121 | AA- | 102 | AA | 19 | 19% |
| 33 | 35 | Fenerbahçe SK | Turkey | 120 | AA | 87 | AA | 33 | 38% |
| 34 | 38 | Celtic FC | Scotland | 120 | AA | 84 | AA+ | 36 | 43% |
| 35 | 26 | AS Roma | Italy | 117 | AA+ | 108 | AA+ | 9 | 8% |
| 36 | 34 | VfL Wolfsburg | Germany | 116 | AA | 91 | AA | 25 | 27% |
| 37 | 42 | West Bromwich Albion FC | England | 115 | AA | 74 | AA- | 42 | 57% |
| 38 | 25 | Olympique Lyonnais | France | 111 | AA | 110 | AA | 1 | 1% |
| 39 | 29 | Valencia CF | Spain | 107 | AA | 99 | AA | 8 | 8% |
| 40 | 39 | SL Benfica | Portugal | 103 | AA+ | 83 | AA+ | 20 | 24% |
| 41 | 18 | Hamburger SV | Germany | 103 | AA | 138 | AA | -35 | -25% |
| 42 | New | Leicester City | England | 102 | A | ||||
| 43 | 48 | São Paulo FC | Brazil | 95 | AA | 54 | A | 40 | 74% |
| 44 | 31 | SV Werder Bremen | Germany | 88 | AA- | 94 | AA | -6 | -6% |
| 45 | New | Borussia Mönchengladbach | Germany | 86 | A+ | ||||
| 46 | 45 | PSV Eindhoven | Netherlands | 86 | AA | 59 | AA+ | 27 | 46% |
| 47 | 40 | Sevilla FC | Spain | 81 | AA | 77 | AA | 4 | 5% |
| 48 | 36 | SC Corinthians Paulista | Brazil | 79 | AA | 87 | A | -8 | -9% |
| 49 | 44 | SS Lazio SpA | Italy | 78 | AA | 62 | AA | 16 | 27% |
| 50 | New | ACF Fiorentina | Italy | 76 | AA | 0 | AA | 76 |
Clubs Need Stars in the Boardroom as well as the Dressing Room
Brand Finance CEO David Haigh comments, "Manchester United's success has been masterminded by Ed Woodward, the Ronaldo of football's commercial sphere. As Sir Alex Ferguson developed United's world-beating reputation, Woodward (and United's owners the Glazers) capitalised on the brand's growing power to establish a worldwide fan-base and a range of sponsorship deals unrivalled in their number and value." That focus on extracting value from the brand, combined with United's footballing success in the recent past, has allowed Woodward to mitigate the impact of the last two seasons' mediocre results.
Sponsors' desire to be associated with the Man U brand appears undimmed. The current shirt deal with Chevrolet (£47 million per year) is worth more than double that with previous partner AON. In 2014 Nike decided to end its longstanding relationship with United, but rather than heralding a loss of faith amongst sponsors, it merely opened the door for another record-breaking agreement. Adidas will be Man U's kit provider for the next 10 years in a deal worth £750 million ($1.1 billion). On an annual basis, this is more than triple the £23.5 million ($36 million) per year Nike had been paying.
Premier League Payday
Manchester United received another boost to its financial potency this year thanks to a record-breaking new deal for the broadcast rights of the 2016/17, 2017/18 and 2018/19 Premier League seasons. The deal is worth £5.1 billion ($7.8 billion) for the UK rights alone, closer to £9 billion ($14 billion) for the global rights, representing a 70% increase on the last round. The news saw Manchester United's share price immediately jump 5%. The deal has been a boon to all Premier League clubs however. Each will receive close to £150 million ($230 million) a season, which has seen their brand values surge this year.
The Saints Go Marching On
Southampton is one of them and is this year's fastest growing brand. The Saints' brand value is up 89% to $183 million. However Southampton has been more than a passive beneficiary of booming broadcast revenues. Ronald Koeman has masterminded a 7th place finish that means a club facing administration in 2009 and playing in the third tier of English football in 2010 can look forward to European football next season and the chance to build its own brand on the international stage.
West Ham Moves Onwards and Upwards
West Ham is another club to benefit from the windfall. The Hammers' 86% growth means puts them in the top 20 for the first time, with a brand value of over $200 million. When the club moves home to London's Olympic stadium it can look forward to further growth thanks to its increased profile and match-day attendance. Tara Warren, Executive Director, Marketing and Communications at West Ham comments "When Vice-Chairman Karren Brady arrived at West Ham five years ago, she instilled a belief that we could establish the club as a truly global brand. The re-brand that my team have executed over the past year showed that desire to create a more ambitious and successful future. Our focus now is on maximising the potential of our imminent move to our magnificent, 54,000-seat new stadium. West Ham will always honour and celebrate its great history, but today's findings show that West Ham United is also fast becoming one of the most investable brands in world football."
Juventus Rejuvenated
Juventus has just missed out on a place in the top ten after what was so nearly a perfect season. Victory in Serie A and the Coppa Italia made it a triumphant year for manager Massimiliano Allegri despite this weekend's loss. On pitch success has been matched by lucrative commercial deals. Adidas will replace Nike as the club's kit supplier in a €139.5 million deal, contributing to a 42% increase in brand value to $350 million. Juventus appears to have made a comprehensive recovery from the scandals that dogged the club a decade ago. The sale of a 48% stake in AC Milan to Thai businessman Bee Taechaubol suggests that global audiences and investors are beginning to see Serie A clubs as prospects that cannot be ignored. If Juventus continues to perform so well, in particular in Europe, prospects for further growth look good.
Sponsors' desire to be associated with the Man U brand appears undimmed. The current shirt deal with Chevrolet (£47 million per year) is worth more than double that with previous partner AON. In 2014 Nike decided to end its longstanding relationship with United, but rather than heralding a loss of faith amongst sponsors, it merely opened the door for another record-breaking agreement. Adidas will be Man U's kit provider for the next 10 years in a deal worth £750 million ($1.1 billion). On an annual basis, this is more than triple the £23.5 million ($36 million) per year Nike had been paying.
Premier League Payday
Manchester United received another boost to its financial potency this year thanks to a record-breaking new deal for the broadcast rights of the 2016/17, 2017/18 and 2018/19 Premier League seasons. The deal is worth £5.1 billion ($7.8 billion) for the UK rights alone, closer to £9 billion ($14 billion) for the global rights, representing a 70% increase on the last round. The news saw Manchester United's share price immediately jump 5%. The deal has been a boon to all Premier League clubs however. Each will receive close to £150 million ($230 million) a season, which has seen their brand values surge this year.
The Saints Go Marching On
Southampton is one of them and is this year's fastest growing brand. The Saints' brand value is up 89% to $183 million. However Southampton has been more than a passive beneficiary of booming broadcast revenues. Ronald Koeman has masterminded a 7th place finish that means a club facing administration in 2009 and playing in the third tier of English football in 2010 can look forward to European football next season and the chance to build its own brand on the international stage.
West Ham Moves Onwards and Upwards
West Ham is another club to benefit from the windfall. The Hammers' 86% growth means puts them in the top 20 for the first time, with a brand value of over $200 million. When the club moves home to London's Olympic stadium it can look forward to further growth thanks to its increased profile and match-day attendance. Tara Warren, Executive Director, Marketing and Communications at West Ham comments "When Vice-Chairman Karren Brady arrived at West Ham five years ago, she instilled a belief that we could establish the club as a truly global brand. The re-brand that my team have executed over the past year showed that desire to create a more ambitious and successful future. Our focus now is on maximising the potential of our imminent move to our magnificent, 54,000-seat new stadium. West Ham will always honour and celebrate its great history, but today's findings show that West Ham United is also fast becoming one of the most investable brands in world football."
Juventus Rejuvenated
Juventus has just missed out on a place in the top ten after what was so nearly a perfect season. Victory in Serie A and the Coppa Italia made it a triumphant year for manager Massimiliano Allegri despite this weekend's loss. On pitch success has been matched by lucrative commercial deals. Adidas will replace Nike as the club's kit supplier in a €139.5 million deal, contributing to a 42% increase in brand value to $350 million. Juventus appears to have made a comprehensive recovery from the scandals that dogged the club a decade ago. The sale of a 48% stake in AC Milan to Thai businessman Bee Taechaubol suggests that global audiences and investors are beginning to see Serie A clubs as prospects that cannot be ignored. If Juventus continues to perform so well, in particular in Europe, prospects for further growth look good.
Note to Editors
For more information on our methodology, the full results in EUR or GBP and for much more content about the issues facing football clubs and sponsor brands, including the fallout of the FIFA scandal, please see the Brand Finance Football 50 report document.
About Brand Finance
Brand Finance specialises in the management of intellectual property. Its brand valuations help marketers to design their campaigns, boards to evaluate business strategy and investors to assess potential acquisitions thoroughly.
Methodology
Brand Finance defines a brand as "a marketing-related intangible asset (including a combination of names, terms, logos and designs) intended to identify and create distinctive associations about a product, service or organisation." It thus represents intangible assets only, not the entire value of the business entity. Brand value is "the total future economic benefits attributable to a brand."
To determine that we first determine a brand's strength. For football club brands we analyse marketing investment, brand equity (the goodwill accumulated with fans, customers, staff and other stakeholders), which includes on-pitch success, and finally the impact of those on business performance. Following this analysis, each brand is assigned a Brand Strength Index (BSI) score out of 100.
Based on the score, each brand in the league table is assigned a rating between AAA+ and D in a format similar to a credit rating. AAA+ brands are exceptionally strong and well managed while a failing brand would be assigned a D grade.
The BSI score is then used determine what rate a club or company would have to a pay to use its brand if it did not control it, a process known as the 'Royalty Relief' method. The BSI determines which rate within a particular range is selected. Once the rate has been set, it is applied to revenue information (including forecasts) to arrive at the brand value.
About Brand Finance
Brand Finance specialises in the management of intellectual property. Its brand valuations help marketers to design their campaigns, boards to evaluate business strategy and investors to assess potential acquisitions thoroughly.
Methodology
Brand Finance defines a brand as "a marketing-related intangible asset (including a combination of names, terms, logos and designs) intended to identify and create distinctive associations about a product, service or organisation." It thus represents intangible assets only, not the entire value of the business entity. Brand value is "the total future economic benefits attributable to a brand."
To determine that we first determine a brand's strength. For football club brands we analyse marketing investment, brand equity (the goodwill accumulated with fans, customers, staff and other stakeholders), which includes on-pitch success, and finally the impact of those on business performance. Following this analysis, each brand is assigned a Brand Strength Index (BSI) score out of 100.
Based on the score, each brand in the league table is assigned a rating between AAA+ and D in a format similar to a credit rating. AAA+ brands are exceptionally strong and well managed while a failing brand would be assigned a D grade.
The BSI score is then used determine what rate a club or company would have to a pay to use its brand if it did not control it, a process known as the 'Royalty Relief' method. The BSI determines which rate within a particular range is selected. Once the rate has been set, it is applied to revenue information (including forecasts) to arrive at the brand value.
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