Manchester United Break $1B, Beat Bayern and Real Madrid for Most Valuable Brand
Manchester United have become the first football club to exceed $1 billion in brand value, according to The Brand Finance Football 50 survey published on Monday (h/t Simeon Gholam of the MailOnline).
The Red Devils are noted as "the biggest brand in world football" by Gholam, moving ahead of Bayern Munich and Real Madrid as the sport's dominant commercial force. Here's a look at the current top 10:
| 1 | Manchester United | $1,206 million | 3 | +$467 million |
| 2 | Bayern Munich | $933 million | 1 | +$36 million |
| 3 | Real Madrid | $873 million | 2 | +$104 million |
| 4 | Manchester City | $800 million | 5 | +$290 million |
| 5 | Chelsea | $795 million | 7 | +$293 million |
| 6 | Barcelona | $773 million | 4 | +$151 million |
| 7 | Arsenal | $703 million | 6 | +$198 million |
| 8 | Liverpool | $577 million | 8 | +$108 million |
| 9 | Paris Saint-Germain | $541 million | 10 | +$217 million |
| 10 | Tottenham Hotspur | $360 million | 12 | +$111 million |
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Be sure to check out the survey's top 50 in Gholam's report and, indeed, the in-depth guidelines detailing how brand wealth is calculated.
Brand Finance CEO David Haigh praised the efforts of United executive vice-chairman Ed Woodward, as reported by Gholam:
"Manchester United’s success has been masterminded by Ed Woodward, the Cristiano 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.
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United, like all Premier League teams, stand to benefit from the record-breaking £5.136 billion television rights deal established in February, reported by Charles Sale and Nick Harris of the MailOnline. Brand Finance's report notes this is the "most critical success" in United's rise to the top, per BBC News.
However, Woodward has worked tirelessly to build United's commercial power over the last couple of years, helping the side to offset their lack of trophy success since Sir Alex Ferguson's departure.
This is best highlighted by the team's upcoming £750-million contract with sportswear manufacturer Adidas. As reported by Jamie Jackson of the Guardian, this decade-long agreement will see United receive £75 million per year starting with the 2015-16 campaign.
No team has ever earned more from a kit deal, which crushes the £30-million-per-year contract Arsenal recently signed with Puma. Woodward also secured a shirt sponsorship deal with car manufacturers Chevrolet in 2014, earning United £47 million per year from this avenue alone, reported by Sporting Intelligence (h/t Alex Miller and Harris from the Independent).
United's ascension comes despite the side's failure to qualify for the 2014-15 Champions League, a competition they will return to next season. Brand Finance's report states "the huge windfalls that Man Utd can expect, will see both revenues and brand value continue to increase in the coming years," noted by BBC News.
Amar Singh of the London Evening Standard tweeted a graph showing the growth of the top 10:
Despite winning the 2015 Champions League, Barcelona dropped two places in the latest rankings. Finalists Juventus slipped out down to 11th, with Premier League club Tottenham Hotspur enjoying greater growth than the Old Lady, Liverpool and even Real Madrid.
Borussia Dortmund's early season battle with relegation and subsequent failure to make the Champions League sees them drop from ninth to 12th. The German side recorded a loss of $1 million in brand worth since last year.
Premier League surprise-package Southampton, who finished seventh during the 2014-15 campaign, are the fastest-growing club, per Brand Finance:
English clubs make up 17 of the top 50, with relegated teams Queens Park Rangers, Burnley and Hull City the only Premier League sides from last season to miss out. Brand Finance highlighted the division's dominance:
United are expected to spend lavishly during the summer.
Louis van Gaal's second season in charge should yield more than just fourth-place, but a considerable amount of squad strengthening is needed first. The Red Devils' incoming sponsorship and rights package could help to fund an influx of stars, helping the club to continue increasing brand worth in the future.
Money makes money in the world of football, something Woodward will be looking to capitalise on now he has taken United to the top of the brand standings.
