Manchester United brand and team value - additional information
Brand Finance, Forbes and KPMG have all attempted to define the value of a football team and brand using different methodologies: - Brand Finance measures a team’s brand value by looking at its brand strength according to the degree of public interest and commercial support, the brand's ‘royalty rate’†, and revenues from matchday, commercial and broadcasting streams. - Forbes calculates a team’s value based on its economic performance from matchday, broadcasting, and commercial sources, as well as any additional value generated by its market position or potential. - KPMG presents a team’s enterprise value, taken from its profitability, popularity, sporting potential, as well as the value of broadcasting rights and revenue opportunity stemming from stadium ownership.
Manchester United’s brand value is set to increase in parts due to the jersey sponsorship deal with Chevrolet that started at the beginning of the 2014/15 season. With a threefold increase from 2009, the team revenue amounted to more than 300 million U.S. dollars in 2015. Almost half of the club’s total revenue was generated from its commercial segment.
Revenue generated from the broadcasting and matchday segment, on the other hand, saw a decreasing trend in their share of the total revenue in recent years. The revenue from the matchday segment in 2015 especially, hit its lowest point in the past 7 years, at almost 140 million U.S. dollars. In the same year, almost 90 percent of Manchester United’s broadcasting revenue was generated from Premier League matches.
According to Brand Finance, Manchester United was the most valuable football brand worldwide in 2016, worth an estimated 1.17 billion U.S. dollars. Another football team that passed the 1 billion U.S. dollar mark was Real Madrid FC.
† 'Royalty rate' is determined by the team’s licensing or franchising negotiation, international licensing, competitor benchmarking and the potential sales figures of what could be charged for the use of the trade mark.