Brand Finance® Sporting Brands 2012
For the first time, the brand values of all major sports teams worldwide have been calculated and compared. Manchester United triumph with a brand value of $853 million. Brand Finance plc, the world’s leading brand valuation consultancy, compiled the list of the world’s 250 most valuable sports teams, including football clubs and teams from the NFL, NHL, NBA, MLB and the Indian Premier League. The full BrandFinance® Sporting Brands 2012 table can be found at www.brandirectory.com.
Brand FinanceÂŽ Sporting Brands 2012 Press Release On the Worldâ€™s most valuable sports brands For Immediate Release 23/10/12 The BrandFinance® Sporting Brands 2012: Europe defeats US in Global Sports Brand Clash European teams top list of 250 most valuable sports team brands Manchester United is the world’s most valuable sports team brand NFL teams have the highest average brand values For the first time, the brand values of all major sports teams worldwide have been calculated and compared. Manchester United triumph with a brand value of $853 million. Brand Finance plc, the world’s leading brand valuation consultancy, compiled the list of the world’s 250 most valuable sports teams, including football clubs and teams from the NFL, NHL, NBA, MLB and the Indian Premier League. The full BrandFinance® Sporting Brands 2012 table can be found at www.brandirectory.com. BrandFinance® Most Valuable Team Brands by Sport Rank 2012 Club Sport Brand Value (US$ m) Brand Rating 1 Manchester United FC Football 853 AAA+ 5 Dallas Cowboys NFL 510 A+ 10 New York Yankees MLB 397 AA 40 Los Angeles Lakers NBA 204 AA 81 Montreal Canadiens NHL 107 A+ 146 Mumbai Indians IPL 48 AA Football club brands top the table - Manchester United is 1st with a brand value of $853m The Dallas Cowboys are the top US team, narrowly defeating the New England Patriots The NFL has the most teams in the top 10 and teams with the highest average brand value At $398m the NY Yankees’ brand value is double its nearest MLB rival the St Louis Cardinals The LA Lakers are the most valuable NBA team and are 40th with a brand value of $205 m The NHL’s player lockout has hit brand values - Montreal Canadiens are top, but 81st overall The most valuable IPL team, the Mumbai Indians, is 146th overall, with a value of $48 m Average team brand value for different sports (US$ millions) 285 % of total brand value of the BrandFinance® Sporting 250 attributable to different sports * Football figure based on top 32 clubs for comparison with NFL 229* 146 NBA 10% NHL 4% IPL 1% Football 36% MLB 16% 91 38 35 NFL 33% Inequality in Football European football provides the four most valuable sports team brands. However on average football brands are less valuable than those from the NFL. The total value of all 32 NFL team brands is $9.1 billion whilst the total for the 32 most valuable football brands is just $7.3 billion. BrandFinance® Top 10 Most Valuable Sports Team Brands Rank 2012 Club Sport Brand Value (US$ m) Brand Rating 1 Manchester United FC Football 852 AAA+ Football 785 AAA Football 599 AAA+ Football 580 AAA+ NFL 510 A+ NFL 499 AA NFL 471 AA 2 3 This shows how polarized football clubs have become in terms of wealth, reputation and prestige. The teams at the very top such as Manchester United, Real Madrid, Barcelona and Bayern Munich are global brands with an international following. They are supported by super-rich foreign investors as well as income from European competitions and can leverage their brands to generate revenues worldwide from. Meanwhile even top-flight teams outside this elite are struggling to compete or are deeply indebted to cover player wage demands. 4 5 6 7 FC Bayern München Real Madrid CF FC Barcelona Dallas Cowboys New England Patriots New York Giants 8 Green Bay Packers NFL 460 AAA 9 Pittsburgh Steelers NFL 410 AA+ 10 New York Yankees MLB 397 AA Socialist US vs Free-Market Europe This disparity can be quantified using the Gini coefficient, a measure of inequality which represents perfect equality as 0% and total inequality as 100%. The results clearly show that football is by far the most unequal with a figure of 45.01%. In contrast the coefficient for the 32 teams of the NFL is 18.26%. MLB, the NBA and NHL have coefficients of 18.27%, 22.39% and 31.28% respectively. Commenting on the findings, Brand Finance CEO David Haigh stated, “Some may see this as further evidence of the need for financial fair play rules in football, to cap the wage inflation that has created such a gulf in both performance and in financial sustainability. Others will note with interest that while the US is usually seen as the home of free-market capitalism and Europe generally more committed to equality and redistribution, on the sports field the opposite appears to be true. While billions of dollars can be freely spent on the Presidential election campaign, Peyton Manning’s jersey must remain logo-free.” IPL stumped Despite cricket being the world’s second most popular sport, the total value of IPL teams is just $321 million. The league has also been dogged by well-documented corruption and financial mismanagement. The greater parity between its nine teams is one things the IPL does have to cheer about however. The Indian Premier League is the most equal of all the major sports leagues in terms of brand value. Its Gini coefficient is just 11.31%. Notes for Editors The valuation date for the BrandFinance® Sporting Brands 2012 is 1st June 2012. The working definition of ‘brand’ used is, “trademark and associated intellectual property.” Incorporating data from all listed companies globally, each brand is accorded a brand rating (a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set) as well as a brand value (a summary measure of the financial strength of the brand). Brand Finance uses the Royalty Relief method to analyse the royalties that a corporation would have to pay to license its brand if it did not own it. About Brand Finance Brand Finance plc, the world’s leading brand valuation consultancy, advises strongly branded organisations on maximising their brand value through effective management of their brands and intangible assets. Founded in 1996, Brand Finance has performed thousands of branded business, brand and intangible asset valuations worth trillions of dollars. Brand Finance is headquartered in London and has a network of international offices in Amsterdam, Athens, Bangalore, Barcelona, Cape Town, Colombo, Dubai, Geneva, Helsinki, Hong Kong, Istanbul, Lisbon, Madrid, Moscow, New York, Paris, Sao Paulo, Seoul, Singapore, Sydney, Toronto and Zagreb. For further information, please visit the Brand Finance Website. The BrandFinance® Forum The release of the BrandFinance® Sporting Brands 2012 comes ahead of the 2012 BrandFinance® Forum, which is being held on October 25th at the RAC. This year’s theme is, ‘Understanding the Value of Sports Brands’ and features speakers from Manchester United, McLaren, LOCOG, Aviva, GE and the US Olympic Committee. This will be an opportunity to learn more about how the sports team brand values are calculated and the implications of the figures for teams, leagues and sponsors. More information can be found at the Brand Finance Forum Website. The BrandFinance® Journal The full results and analysis of the BrandFinance® Sporting Brands 2012 will be available in the next issue of the BrandFinance® Journal, due for release in November. Past issue of the journal, including reports on the nation brands and the brand value of the monarchy can be found here. Media Enquiries UK & International Robert Haigh Communications Manager T: +44 (0) 20 7389 9400 M: +44 (0)7762211267 firstname.lastname@example.org Matt Hannagan Sports Valuation Analyst T: +44 (0) 20 7389 9400 email@example.com US Elise Neils Managing Director Brand Finance (USA) T: 312 256 3845 M: 312 671 2340 firstname.lastname@example.org Canada Edgar Baum Managing Director Brand Finance (Canada) M: +1 647 922 6238 email@example.com Appendix BrandFinance速 Top 10 Most Valuable Football Club Brands BrandFinance速 Top 10 Most Valuable NFL Brands Rank 2012 Club Brand Value (US$ m) Brand Rating Rank 2012 Club Brand Value (US$ m) Brand Rating 1 Manchester United FC 853 AAA+ 1 Dallas Cowboys 510 A+ 2 FC Bayern M端nchen 786 AAA 2 New England Patriots 500 AA 3 Real Madrid CF 600 AAA+ 3 471 AA 4 FC Barcelona 580 AAA+ 4 460 AAA 5 Chelsea FC 398 AA- 5 Pittsburgh Steelers 410 AA+ 6 Arsenal FC 388 AA- 6 New Orleans Saints 340 AA 7 Liverpool FC 367 AA- 7 337 A+ 8 Manchester City FC 302 BBB+ 8 329 AA- 9 AC Milan 292 AA+ 9 Houston Texans 325 A+ 10 FC Schalke 04 266 BBB+ 10 Washington Redskins 325 A New York Giants Green Bay Packers Philadelphia Eagles Baltimore Ravens BrandFinance速 Top 10 Most Valuable MLB Brands BrandFinance速 Top 10 Most Valuable NBA Brands Rank 2012 Club Brand Value (US$ m) Brand Rating Rank 2012 Club Brand Value (US$ m) Brand Rating 1 New York Yankees 398 AA 1 Los Angeles Lakers 205 AA 213 AA- 2 New York Knicks 178 BBB+ 207 AA- 3 Miami Heat 157 BBB+ 205 BBB+ 4 143 A 187 BBB+ 5 137 A 174 BBB+ 6 119 A+ 115 A+ 104 BBB 2 3 4 5 6 St. Louis Cardinals Philadelphia Phillies Boston Red Sox Los Angeles Dodgers Texas Rangers Chicago Bulls Dallas Mavericks Boston Celtics San Antonio Spurs Orlando Magic 7 San Francisco Giants 173 A+ 8 Atlanta Braves 163 A 9 Detroit Tigers 162 BBB+ 9 Toronto Raptors 100 BB 10 Chicago Cubs 155 BBB- 10 Houston Rockets 94 BBB BrandFinance速 Top 10 Most Valuable NHL Brands Rank 2012 1 2 3 4 5 6 7 8 7 8 BrandFinance速 Most Valuable IPL Brands Club Brand Value (US$ m) Brand Rating Rank 2012 Club Brand Value (US$ m) Brand Rating Montreal Canadiens 108 A+ 1 Mumbai Indians 48 AA 105 BBB+ 2 Chennai Super Kings 45 AA 83 A 41 A+ 39 A 32 A- 31 BBB Toronto Maple Leafs New York Rangers Vancouver Canucks Chicago Blackhawks Pittsburgh Penguins Detroit Red Wings Boston Bruins 3 Royal Challengers Bangalore Kolkata Knight Riders Delhi Daredevils Hyderabad Deccan Charges 81 BBB+ 52 A 52 A 51 A+ 6 48 A 7 Pune Warriors 29 BB 8 Kings XI Punjab 29 B 9 Rajasthan Royals 27 B 9 Ottawa Senators 39 BB+ 10 Philadelphia Flyers 39 BBB 4 5