BrandArena: Manchester United Becomes First $1billion Football Club Brand

Tuesday 9 June 2015

Manchester United Becomes First $1billion Football Club Brand

England’s Manchester United has become the first professional football team to break the $1 billion mark in terms of brand value, according to research undertaken by UK-based leading brand valuation and strategy consultancy Brand Finance.

Manchester United received another boost to its financial potency this year thanks to a record-breaking new deal for the broadcast rights of the 2016/17, 2017/18 and 2018/19 Premier League seasons. The deal is worth £5.1 billion ($7.8 billion) for the UK rights alone, closer to £9 billion ($14 billion) for the global rights, representing a 70% increase on the last round. The news saw Manchester United’s share price immediately jump 5%. The deal has been a boon to all Premier League clubs however. Each will receive close to £150 million ($230 million) a season, which has seen their brand values surge this year.

Real Madrid in the third position while other English clubs -- Chelsea and Manchester City were ranked fourth and fifth respectively.

“Despite another season without silverware, Manchester United has reclaimed its position at the top,” reads the Brand Finance report, adding, “The Red Devils have become the first billion dollar soccer brand, with 63% growth bringing total brand value to $1.2 billion.”

"Barca’s resounding 3-1 win over Juventus caps a year of stunning successes (including La Liga title and the Copa del Rey) in which the club has made history by becoming the first to win the treble twice. Saturday’s game alone added $28 million to Barca’s brand value, contributing to a overall increase on 2014 of $151 million dollars, bringing the total value of the brand to $773 million."

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