Liverpool FC Forum

by **Reg** » Thu Sep 29, 2011 4:32 am

Manchester United Passes Real Madrid in Brand Survey

Sept. 29 (Bloomberg) -- David Haigh, chief executive officer of Brand Finance Plc, talks about the value of soccer brands around the world including Manchester City, Manchester United, Barcelona and Real Madrid. He spoke yesterday in London with Bloomberg's Owen Thomas. (Source: Bloomberg)
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Manchester United, the record 19- time English soccer champion planning an initial public offering later this year, has climbed above Real Madrid in a survey of Europe’s top 30 teams by brand value.

The annual report published by Brand Finance Plc gives United a brand valuation of 412 million pounds ($644 million), up 11 percent from last year. Real, which has a policy of signing some soccer’s biggest names like Cristiano Ronaldo and Kaka, has a brand estimated to be worth 401 million pounds, with European champion Barcelona third at 392 million pounds.

United’s strength has been underpinned by its success on the field, where it’s won the Premier League in four of the last five seasons, and the results of a commercial division that enjoyed an annual increase of 27 percent to top 100 million pounds for the first time. Earlier this month the team announced a sponsorship agreement for its training apparel worth 40 million pounds with logistics company DHL.

“The commercial team at United have developed such a compelling and well-protected brand that global partners are willing to pay premium sums to be affiliated with the champions,” said Brand Finance, which advises companies like brewer SABMiller Plc and bank Standard Chartered Plc. “In the upcoming IPO, we would expect the brand strength of United to feature prominently in the investment story.”

United is planning to raise $1 billion later this year by floating as much as 30 percent of the club in an IPO on the Singapore stock exchange.

While United may have a stronger brand than Real, the team owned by the U.S.-based Glazer family isn’t making the most money. It’s behind both Real and Barcelona in terms of revenue, according to a list published by accountant Deloitte LLP in February. Real last week announced record sales of 480 million euros ($654 million), more than any other team in professional sport. United had revenue of 331.4 million pounds, according to a Sept. 1 filing.

Most Improved

Brand Finance said the most improved soccer brand in the past 12 months is United’s cross-town rival Manchester City. The team owned by billionaire Sheikh Mansour Bin Zayed Al Nahyan has lavished millions of pounds on talent to make it a contender at home and abroad and has qualified for Europe’s lucrative Champions League for the first time.

In August, City signed the biggest partnership deal in sport, a decade-long agreement worth more than 350 million pounds with Abu Dhabi-based airline Etihad. The report ranks City 11th, up from 19th, with a brand value that’s almost doubled to 106 million pounds.

City’s rise can be attributed to a combination of “huge sponsorship deals, star signings, Champions League football and a first trophy in 35 years,” the report said.

Top Ten

Bayern Munich, Germany’s richest and most successful team, is fourth on the list, ahead of London teams Chelsea and Arsenal. The Italian trio of AC Milan, Inter Milan and Juventus and Liverpool complete the top ten. The total brand value of all 30 teams is worth 1.5 billion pounds, according to the report.

Still, that figure “alone has little immediate application to football clubs,” according to Brand Finance. Clubs must invest in “servicing the brand” if they are to monetize the strength of the brand. Manchester United’s commercial division has grown from two to more than 40 since the Glazers bought the team in 2005.

“Within the branding industry they are not doing anything unique,” Dave Chattaway, one of the report’s authors said in an interview. “They are just taking best practice from companies like Apple, Prada, heavily branded industries and bringing it into the sports industry.”

The report, which is in its 6th edition, defined “brand” as the teams’ trademarks and intellectual property. Of the team’s that make up the top 30, Brand Finance has undertaken paid consultancy work for Manchester United and Portugal’s Benfica.

Top 30 clubs by brand value (millions of pounds):
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1. Manchester United 412
2. Real Madrid 401
3. Barcelona 392
4. Bayern Munich 308
5. Chelsea 196
6. Arsenal 188
7. AC Milan 170
8. Inter Milan 164
9. Liverpool 156
10. Juventus 115
11. Manchester City 106
12. FC Schalke 84
13. Hamburg 84
14. Tottenham 79
15. Borussia Dortmund 78
16. Lyon 76
17. Marseille 74
18. Roma 63
19. Atletico Madrid 55
20. Stuttgart 51
21. Valencia 50
22. Bordeaux 48
23. Ajax 46
24. Napoli 43
25. Aston Villa 43
26. Werder Bremen 42
27. Everton 38
28. Benfica 36
29. Fiorentina 35
30. Lazio 34

To contact the reporter on this story:

Tariq Panja in London at tpanja@bloomberg.net

by **neil** » Thu Sep 29, 2011 8:43 am

someone must give a fuck but it aint me.

by **Reg** » Thu Sep 29, 2011 9:59 am

Oh dear.......... can't see how this links into our commercial and sponsership outlook and club profitability?

by **SouthCoastShankly** » Thu Sep 29, 2011 10:38 am

Reg wrote:Oh dear.......... can't see how this links into our commercial and sponsership outlook and club profitability?

I actually think that our position is testament to our brand. We have spent nothing near what other teams above us have spent, yet we still are a global brand.

Sure there are improvements that can improve this status but it isn't like this isn't being addressed. John Henry and FSG are the right people to do this IMO, they understand the commercial side and have impressed me with what has been done so far. They have taken more time than we thought they woudl on some things (Stadium) but as a business entity they have the right to evaluate a situation so that no unnecessary risk is taken. Especially risk that could financially burden the club.

The big three of Man Utd, Real Madrid and Barcelona all have become global brand giants due to team success. So success for Liverpool is key to closing the gap. I have faith in the direction we are moving. Essentially the club is no longer financially destitute and is moving in a positive direction. Our management and coaching team is right, Kenny is a motivator, Steve Clarke is a title winning coach. Not sure a better combination is available at the moment?

The fact of the matter is that any closing of the gap will take time. Nothing happens over-night. Even if it could it would require a Man City situation, a situation that is does not fit with Liverpool FC.

by **metalhead** » Thu Sep 29, 2011 12:11 pm

Its all about improving our commercial value, during the David Moore era we never evolved in that area, while we saw the Mancs go ahead of us in terms of commercial brand. Then came a long twIt& :censored:

and we did ok for a while with Ian Ayre proving to be very successful in that department.

We need time, we need a new stadium that would attract partners and a long term strategy. FSG have top quality business men who know how to do that.

by **SouthCoastShankly** » Thu Sep 29, 2011 1:02 pm

You have to remember it took Man Utd the best part of ten years to achieve where they are today.

They invested each year in a squad that won lots of trophies. Each year doing different pre-season tours and sponsorship activities. It all adds up to the global recognition they have today.

As I said before though, we should be proud that the Liverpool brand is so well known without that level of investment and marketing. Imagine the possibilities!

by **Roger Red Hat** » Thu Sep 29, 2011 2:17 pm

Ar$enal a bigger brand than Liverpool? get ya neck fuked. no way at all. load of bollx made up figures to just add to the hype that is a manU w@nkfest.

by **metalhead** » Thu Sep 29, 2011 2:55 pm

Roger Red Hat wrote:Ar$enal a bigger brand than Liverpool? get ya neck fuked. no way at all. load of bollx made up figures to just add to the hype that is a manU w@nkfest.

they were never above us until they got their new stadium sorted out

by **tubby** » Thu Sep 29, 2011 3:20 pm

We have a lot of work to do, on and off the pitch.

by **Kharhaz** » Fri Sep 30, 2011 1:32 am

metalhead wrote:
Roger Red Hat wrote:Ar$enal a bigger brand than Liverpool? get ya neck fuked. no way at all. load of bollx made up figures to just add to the hype that is a manU w@nkfest.

they were never above us until they got their new stadium sorted out

This.

A new stadium has helped them grow. The only thing holding us back now is either a new stadium ourselves, or an expansion on Anfield.

by **Reg** » Fri Sep 30, 2011 10:16 am

Roger Red Hat wrote:Ar$enal a bigger brand than Liverpool? get ya neck fuked. no way at all. load of bollx made up figures to just add to the hype that is a manU w@nkfest.

The theory is (and Arsenal are the exception rather than the norm) new stadium = greater match day revenues, greater sponserhip/promotional potential, more ability to buy better players = success on the pitch.

Lets not confuse 'brand' with success or annual income.

Brand is about identity, marketing value.
Income is solely based on revenue regardless of success or full utilisation of brand potential.
When a sponser pays money, he is buying into the brand.

Liverpool's brand value is high despite the fact we haven't won the league for decades because of our powerful image. Owen, Fowler, SG, Istanbul, Rafa, Kenny, miracles, beating ManUre etc.. all keeping the brand image alive despite a true lack of sustainable success.

The weakness of the brand image is we don't maximise the conversion into income.

Which reduces our ability to invest in new players, a stadium and ultimately feed off our own success.
Man Ure feed off their own success.... brand value, income, stadium, success.

As usual it boils down to take what we have and either invest in a new stadium or players.

by **Kenny Kan** » Fri Sep 30, 2011 1:36 pm

Moral of the story: Be successful on the pitch - all else will follow.

Surprised by this - NO, not at all.

by **worcester_red** » Fri Sep 30, 2011 2:22 pm

Sorry but whilst I accept that Manure, Real, Barca and possibly Inter and AC Milan are bigger worldwide brands than us I do not accept that Chelsea, Arsenal and fecking Bayern are, this is complete :censored:

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If we are such an average brand how come we have the second biggest sponsorship deal in the prem??

by **neil** » Fri Sep 30, 2011 2:44 pm

by **neil** » Wed Nov 16, 2011 12:12 pm

ok reg, we get the picture

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Manchester utd passes real madrid in brand survey - Lfc have a lot of catching up to do

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