Manchester City FC named world’s most valuable football club brand

Manchester City FC becomes the world’s most valuable football brand, ending Real Madrid’s four-year streak at the top
Real Madrid CF reigns supreme as the world’s strongest football club brand
Spanish clubs continue to perform strongly in the 2023 ranking
Manchester United jumps ahead of rival Liverpool FC to take 4th position
London football clubs hold onto top 10 ranks, with Arsenal FC seeing the biggest brand value increase
AC Milan represents Italy as the fastest-growing football club brand for second year running
Paris Saint-Germain overtakes FC Bayern Munich, while only three French clubs feature in top 50
Germany holds the second-highest number of clubs in the ranking behind UK, while Bundesliga continues to lose brand value
Flamengo just holds onto 50th position as the only non-European club in the ranking

Manchester City FC becomes the world’s most valuable football brand, ending Real Madrid’s four-year streak at the top

Manchester City FC (brand value up 13% to €1.51 billion) has achieved a historic milestone by surpassing Real Madrid CF (brand value down 4% to €1.46 billion) as the world’s most valuable football club brand. The club’s brand value has seen a positive increase of 34% growth since the COVID-19 pandemic and has now reached an all-time high. Manchester City FC also boasts the highest revenue in this year’s table, a key driver in its ascent to the top.

Hugo Hensley, Head of Sports Services at Brand Finance, commented:

“Manchester City FC has achieved an extraordinary feat by surpassing Real Madrid to become the champion of football club brands. For a decade now, the City team has exerted its dominance in English football, including securing four Premier League titles in the past five seasons. However, the club’s performance in this year’s ranking highlights that Manchester City FC are performing off the pitch in terms of building a strong brand and attracting fans and sponsors, and setting the stage for what should be an iconic 2023 Champions League final against Inter Milan.”

Real Madrid CF reigns supreme as the world’s strongest football club brand

In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 10,000 football fans in Europe, Brazil, China, and the USA.

While beaten out of the top spot by Manchester City FC this year, Real Madrid CF strikes again as the strongest and second-most valuable football club brand. In 2022, Brand Finance research determined that the Spanish powerhouse were the most likely club to be rated ‘the best club in the world’ by fans. Brand strength is what attracts fans, players, investors, and sponsors to engage with the club –delivering commercial value through higher revenues, prices – especially for sponsorship, higher growth, and sponsors, reducing risks to profitability related to weak on pitch performance.

Spanish clubs continue to perform strongly in the 2023 ranking

Following Real Madrid in 2^nd, FC Barcelona (brand value up 4% to €1.4 billion) defends its 2022 rank in 3^rd, as does Club Atletico de Madrid (brand value down 5% to €549.56 million) in 12^th. Following a period of on-pitch setbacks and financial struggles, FC Barcelona appears to have resurged its reputation, winning the Spanish LaLiga ahead of historic rival Real Madrid in 2^nd and Club Atletico de Madrid in 3^rd.

Sevilla FC (brand value up 6% to €189.27 million) has also shot up five places to 25^th, while Villareal CF (brand value up 5% to €137.38 million) has gone up four rankings to 36^th position. After struggling in LaLiga and changing coaches multiple times, Sevilla FC found stability under the leadership of Jose Luis Mendilibar, who is credited with reviving the team’s success. Further solidifying its international reputation, the club has achieved remarkable results in Europe, defeating British and Italian powerhouses Manchester United FC and Juventus.

Spain adds two more achievements to its 2023 success, as Real Sociedad (brand value €133.63 million) is a new entrant in 37^th place, while Real Betis (brand value up 31% to 153.1 million) shoots up nine positions to 34^th to be named the third fastest-growing football club brand. Finishing 6^th in LaLiga (ahead of Sevilla FC in 12^th), Real Betis is hoping to further boost its brand strength and global recognition through a €70 million renovation of its home stadium. Further, Brand Finance also ranked Real Betis 2^nd, one spot ahead of Real Madrid CF, in its Football Sustainability Index. The club’s commitment to raising awareness about climate change has further bolstered its positive reputation worldwide.

Manchester United jumps ahead of rival Liverpool FC to take 4th position

Manchester United FC (brand value up 9% to €1.4 billion) now sits one rank ahead of its historic rival Liverpool FC (brand value up 7% to €1.4 billion) in fourth and fifth position respectively. Both clubs have recorded positive brand value trajectories since 2022, finally surpassing their pre-pandemic values. After two Covid-hit seasons, 2022-2023 saw the continued return of live matches and fans to stadiums, resulting in increased ticket sales and revenues.

Jurgen Klopp’s appointment as manager of Liverpool FC in 2015 has propelled the club to unparalleled success, establishing them as one of the country’s most formidable teams. As for its rival, Erik ten Hag’s arrival as Manchester United’s leader in 2022 also seems to have resurged the club’s reputation. The Red Devils’ win against Newcastle United to win the League Cup this year saw them clinch their first trophy in six years.

London football clubs hold onto top 10 ranks, with Arsenal FC seeing the biggest brand value increase

Arsenal FC (brand value up 14% to €906.28 million) is up two positions from 2022 and now ranks 8^th. Squad investments, (Arsenal FC signed Gabriel Jesus and Oleksandr Zinchenko from Manchester City FC in summer 2022) strengthened on-pitch tactics, and Mikel Arteta’s effective leadership have all contributed to The Gunners’ strong season, their 3-1 win over Chelsea FC (brand value up 1% to €860.5 million) on May 3^rd propelling them to the top of the Premier League. Although eventually beaten into a respectable second by Manchester City FC, Arsenal FC set the record for the most days spent at the top of the league without winning it. Furter, their status as the youngest squad in the league instils hope among key stakeholders for a promising future.

AC Milan represents Italy as the fastest-growing football club brand for second year running

AC Milan (brand value up 33% to €357.98 million) ranks 15^th this year and is named the fastest-growing football club brand, closely followed by SSC Napoli, (brand value up 31% to €239.81 million) in 18^th as the second-fastest growing. AC Milan had a successful season, reaching the Champions League semi-finals and holding a respectable 4th position in Serie A. The club’s brand value has increased through royalties and sponsorships, totalling nearly €20 million in 2022. Also solidifying its growing success, SCC Napoli has stormed to the top of the Serie A league following continued on-pitch success. Revenues generated from the Serie A and the Champions League qualifiers, in addition to broadcasting and sponsorship opportunities, have further propelled the club’s growth.

Paris Saint-Germain overtakes FC Bayern Munich, while only three French clubs feature in top 50

Paris Saint-Germain (brand value up 10% to €1.1 billion) has moved up one rank into 6^th, overtaking 2022 rival FC Bayern Munich (brand value down 1% to €1.1 billion) who drops to 7^th. PSG, the current top-ranked team in the French Ligue 1, gained global recognition and popularity following the 2022 World Cup, which saw young talent Kylian Mbappé, and footballing legend Lionel Messi go head-to-head in a historic final. The club’s formidable and widely recognised powerhouse trio of Messi, Mbappé, and Neymar, has solidified PSG’s iconic status, in the footballing world and beyond.

Germany holds the second-highest number of clubs in the ranking behind UK, while Bundesliga continues to lose brand value

Germany has an impressive 10 clubs in this year’s ranking, with its strongest and most valuable club brand, FC Bayern Munich holding its top 10 rank in 7^th. Although the team made a record start to the 2022-2023 season, they are facing increasing competition from other German clubs. They sit in 2^nd place behind Borussia Dortmund (brand value up 5% to €541.92 million, ranked 13^th) in the Bundesliga, while Bayern also recently suffered their first-ever defeat by RB Leipzig (brand value down 9% to €222.46 million, ranked 19^th). That said, Bayern’s exceptional talent pool, global reputation and popularity remains undisputed; the club have secured more victories than all remaining Bundesliga teams combined, and the club boasts a global fan base of loyal and dedicated fans.

Flamengo just holds onto 50th position as the only non-European club in the ranking

Flamengo (brand value up 2% to €97.85 million) have dropped from 49^th in 2022 to 50^th position in 2023. Despite Brazilian hopes for their success, the team were knocked out of the 2023 FIFA Club World Cup in February after a disappointing defeat to Saudi Arabian team, Al-Hilal. That said, the Brazilian club still performs respectively in the BSI ranking, dropping only one place to 16^th. This strong result indicates that the club maintains a favourable global reputation, attributed to the successful legacy and rich heritage of its nation’s football culture. Flamengo also achieves the second-highest score globally for its passionate fan base.

Shabir Hussain CEO & FOUNDER, SHAM LUXURY PROPERTIES London, England, United Kingdom

Shabir has years of experience in Banking, Corporate Purchasing and Real-Estate, having held positions at BNP Paribas, Fam Properties and Birmingham City Council.

When he saw there was a Demand, he didn’t wait for the opportunity he created it and became that bridging gap between the UK and UAE to serve investors.

The GLOBAL strategist

The market today

SHAM | EDITION VISION & VALUES

Our team has a great interest in focusing on key developing regions, that have a low supply and a high demand for property. Secondly, our focus is on London, Birmingham and Manchester as these are the top three cities with outstanding universities for the international clients to generate a lucrative return. We also provide Bespoke Residential Apartments in Dubai, built to impress with the unique designs and architecture overlooking the breath-taking views. These signature developments add value to our investor’s portfolios.

Moreover, we are that bridging gap between the buyer’s and the sellers worldwide, we make the possible happen, and facilitate the most important transaction with integrity.

Our team are highly driven and do things that other people are afraid to do, to win in the market. We have partnered up with several recognized developers in the United Kingdom and United Arab Emirates, serving clients to buy and sell the most luxurious properties with peace of mind.

FREQUENTLY ASKED QUESTIONS BY INVESTORS

Subsequently, with all the issues the world has been facing since the Global Pandemic, Investors are keen to ask questions about the condition of the market before making any decisions. The most common question I get asked is “when to invest”, well, my answer is, “there is not a Golden time to invest.

The best time to buy is in a low market, which enables you to minimize your risks, while maximising your upside potentials and most importantly to factor your exit strategy in place, this allows you to maximise your returns.

This can only be done right, if the investment advisor has made an educated decision in sourcing, reviewing and structuring the deal, in a way that will benefit your investment.

HOW RESILIENT WAS THE UK REAL ESTATE MARKET BEFORE COVID 19

As you all know the UK market is one of the strongest markets in the world, attracting thousands to invest in prime areas. In 2019 the national housing price growth come to a standstill due the lack of supply, this was a positive for landlords as the rental growth saw a slight increase during 2019 due to declining availability of homes to let. So, this just shows there was a Supply vs Demand issue that we were facing.

The private rents in London on average rose by 0.9% in nominal terms in the year to June 2019 (ONS). This is up from -0.2% in June 2018 and marks seven consecutive months of positive nominal rental growth.

DID THE PANDEMIC IMPACT THE REAL ESTATE MARKET

The whole world was on a standstill and the property prices fell sharply after the onset of COVID-19 when the ockdown measures restricted the completion of property transactions.However, they quickly recovered, reaching a new record peak by November 2020.

These increases were mainly driven by the policies introduced early on to support businesses, household incomes and the housing market. These boosts to demand interacted with the decades- long under supply of housing – exacerbated by even worse than usual construction levels in Q2 2020.

Movement restrictions introduced in the second quarter of the year followed by the gradual easing of restrictions and the subsequent introduction of a property transaction tax holiday in July 2020 (which was due to run until March 2021) have made 2020 an unusual year in the housing market.

HMRC estimates pointed towards a 14.9% yearon-year increase in UK residential property transactions over 2021-22 (1,374,050), with annual volumes reaching their highest level since 2007- 08 (1,473,950) and year-on-year growth in the post-financial crisis era surpassed only by that in 2013-14 (22.8%).

Despite transaction volumes contracting for three consecutive quarters through Q4 2021, from the record high of Q2 2021 and as a combination of temporary stimulus support being wound down and exponential growth in house prices pressured affordability for many, quarterly transaction volumes remained both above or in line with the long-term average, and above levels recorded during the lockdown nadir through near-term post-lockdown recovery period.

Shabir-hussain Ceo Sham Luxury Properties

WHAT’S HAPPENING IN THE MARKET NOW

As a result of the fall and the subsequent recovery of London rents during the pandemic, annual increases in average asking rents were at a high of 15.8% in the second quarter of 2022, with Rightmove recording the highest annual growth ever in any region.

Demand for private rental homes remains above supply in London and there are signs that both supply and demand are continuing to increase slowly, despite reports of many landlords considering leaving the market.

According to the House Price Index from the ONS, London house prices rose by 7.9% over the year to April, up from 4.9% annual growth in March. The average house price was highest in
Kensington & Chelsea at £1.5 million, and lowest in Barking & Dagenham at £336,000.

BRAND FINANCE FOOTBALL 50 2023