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Friday, July 1, 2022

With €1.5bn Valuation, Real Madrid is World’s Most Valuable Football Club

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According to Brand Finance Football 50 2022 report, LaLiga champions, Real Madrid is the world’s most valuable football club. Real Madrid’s brand value increased to €1.5 billion ahead of Manchester City (€1.3 billion) and Barcelona (€1.3billion) in the standings.

In its report, Brand Finance notes that “Real Madrid’s increase in brand value in 2022 was driven by a combination of improved brand strength and a positive revenue trajectory. The brand has strong opportunities to grow alongside international transfers and sponsorship opportunities.”

The club also boasts the world’s strongest football brand. Brand Finance also determines the strength of brands through metrics that evaluate marketing investment, stakeholder equity and business performance. In this ranking, Real Madrid earned a Brand Strength Index score of 94.0 out of 100 and a brand rating of AAA+, which places the club ahead of Liverpool (92.9) and Barcelona (92.1).

Read Also: Transfer News: Real Madrid Find Perfect Alternative to Mbappe

In its 2022 report, which analyses the 50 most valuable soccer club brands, LaLiga clubs are the second-fastest growing in terms of valuation, with eight of them on the list: apart from Real Madrid, Barcelona, is third; Atlético de Madrid.

According to this survey, Real Madrid’s brand worth climbed by 19% over the previous year to the aforementioned $1.6 billion. It holds the title of “most valuable club brand in the world” for the fourth consecutive year and gets the title of “strongest brand” for the first time.

The increase in the value of the private label is due to a combination of factors, as the report explains: “Improvement in its brand strength and a positive revenue trajectory. This is a strong and promising reversal of the 10 per cent drop in brand value it suffered last year, due to COVID-19 uncertainty and weaker fan sentiment spiced by a threatening European Super League.”

Barcelona dropped after finishing second last season despite increasing its brand value by five per cent. It was overtaken by Manchester City, which gained 19 per cent and snatched second place by €2 million difference. Almost a year after Messi’s departure and lacking liquidity with a debt of €488 million, Barcelona resorted to bank financing with an agreement with Goldman Sachs in a €500 million deal and also signed a bumper package with Spotify.

The Premier League is the league with the most clubs in the ranking, with a total of 18 and an average rise of 15 per cent.

Italy’s Serie A has seven clubs, one more than last year and up 43 per cent. AC Milan, this year’s league champion, deserves a special mention, with its brand value up 76 per cent and the highest growth of the entire list.

The French Ligue 1 has three teams, including Paris Saint-Germain, which ranks seventh, the same as last year; Germany is represented by eleven clubs that have lost a total of four per cent of their value overall.

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