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Manchester United are the RICHEST CLUB in the world after smashing the $1BILLION brand barrier

With a total worth of over $1.2bn, Manchester United are the biggest brand in world football, becoming the first club to pass the $1billion mark.

Despite another season without silverware, United have overcome Europe’s big-hitters at the top of The Brand Finance Football 50, according to a study released on Monday.

The Red Devils’ are worth almost $300m more than second-placed Bayern. Real Madrid, Manchester City and Chelsea round out the top five.

Barcelona’s Champions League final victory over Juventus on Saturday added $28m to their brand value, but could not stop them falling two places to sixth below City and Chelsea – although their second Treble in six years will probably ease their pain.

Brand Finance CEO David Haigh said: ‘Manchester United’s success has been masterminded by Ed Woodward, the Cristiano Ronaldo of football’s commercial sphere.

United also received another boost to their financial potency thanks to the record-breaking new UK broadcast deal for Premier League rights commencing from the 2016-17 season worth $7.8bn (£5.1bn).

BRAND STRENGTH, REVENUE AND ROYALTY RATE: HOW IT’S CALCULATED

Brand Finance calculates the values of the brands in its league tables using the ‘Royalty Relief approach’. This approach involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand, i.e. what the owner would have to pay for the use of the brand if it were not already owned.

1) Calculate brand strength on a scale of 0 to 100: the Brand Strength Index (BSI) captures the ability of clubs to drum up popular interest and then convert interest into support and custom.

2) As brand has differing effects on each source of income, we then split revenues down into three streams: matchday, broadcasting and commercial.

3) Calculate royalty rate. The brand strength score is applied to the royalty rate range to arrive at a royalty rate. For example, if the royalty rate range in a brand’s sector is 0-5 per cent and a brand has a brand strength score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4 per cent.

4) Determine brand specific revenues estimating a proportion of parent company revenues attributable to a specific brand.

5) Determine forecast brand specific revenues using a function of historic revenues, equity analyst forecasts and economic growth rates.

6) Apply the royalty rate to the forecast revenues to derive brand revenues.

7) Brand revenues are discounted post tax to a net present value, equal to the brand value.

Despite their run to the Champions League final and domestic double in Italy, Juventus have missed out on a place in the top 10. They are the highest-ranked Serie A club in 11th place.

Overall, the the top 50 is made of 17 of 20 clubs who were in the Premier League last season. Unsurprisingly it is the relegated trio of Hull City, Burnley and QPR who missed out.

Nine of the teams are from Germany, seven from Serie A, just five from Spain, four from France and eight from other league’s including Portugal, Scotland, Turkey and Brazil.

You can see the full table below:

Biggest Football Brands In The World
Biggest Football Brands In The World

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