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Brand FinanceŽ Sporting Brands 2012 Press Release On the World’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 r.haigh@brandfinance.com

Matt Hannagan Sports Valuation Analyst T: +44 (0) 20 7389 9400 m.hannagan@brandfinance.com

US Elise Neils Managing Director Brand Finance (USA) T: 312 256 3845 M: 312 671 2340 e.neils@brandfinance.com

Canada Edgar Baum Managing Director Brand Finance (Canada) M: +1 647 922 6238 e.baum@brandfinance.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


Brand Finance® Sporting Brands 2012