Manchester United Determined to Be World's First Billion DollarFootball Brand

First Billion Dollar Football Brand? Not Barcelona, Manchester United!

• Manchester United overtakes Bayern Munich to become the world’s most valuable soccer brand


• New York listed Manchester United the first billion dollar football brand


• Record-breaking deals agreed despite two mediocre seasons, driving up value


• Champions League final victory adds $28 million to Barcelona’s brand value


• But Barca is 6^th, having been overtaken by Chelsea and Manchester City


• Southampton is the fastest growing brand, up 89% on 2014


• MLS teams fail to feature despite growing international stature

The Brand Finance Football 50, released today, is an annual study conducted by London-based brand valuation and strategy consultancy Brand Finance. Football’s biggest teams are put to the test to determine which command the strongest and most valuable brands.Devils Are First Billion Dollar Football BrandDespite 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 SlideBarca’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 6^th 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 Soccer Brands

Rank 2015	Rank 2014	Team	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 Locker Room
Brand Finance CEO David Haigh comments, “Manchester United’s success has been masterminded by Ed Woodward, the Ronaldo of soccer’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. The decision to list the club on the New York Stock Exchange in 2012 is further evidence of United’s commercial competency.” The focus on extracting value from the brand, combined with United’s on-pitch 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 7^th place finish that means a club facing administration in 2009 and playing in the third tier of the English game in 2010 can look forward to European soccer 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.

MLS MIA

Unfortunately no MLS teams feature in the Brand Finance Football 50. Financial information is sparse and generally undisclosed, making robust, fair valuations impossible. MLS clubs are making great strides though. Mr Haigh continues, “The MLS is setting an example to leagues where soccer is still establishing its presence. It is no longer seen in Europe as the place where big names go to play out their last few games for big money. The City Football Group’s establishment of NYFC shows that the global soccer establishment are taking the MLS and its clubs seriously.”