Real Madrid is football's most powerful brand

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Real Madrid is footballs most powerful brand
Real Madrid's James Rodriguez (left ) celebrates scoring a goal against Granada during a La Liga match.

dubai - Club has overtaken Barça after a record 12th Champions League victory

By Staff Report

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Published: Wed 7 Jun 2017, 7:07 PM

Last updated: Wed 7 Jun 2017, 9:09 PM

Real Madrid has overtaken Barça as the most powerful club brand, valuation and strategy consultancy Brand Finance has said.

Barça had remained just fractionally ahead of Real Madrid in recent years, until now. After claiming yet another La Liga title and a record 12th Champions League victory, Real's Brand Strength Index score is up from 94.6 to 96.1, edging ahead of Barcelona on 95.4.

However, experts say that Reasl Madrid can do a lot more to capitalise on its on-pitch success. Despite being football's most powerful brand in terms of brand value, it still trails Manchester United by a considerable margin. Manchester United, despite finishing sixth in the Premier League, is the most valuable brand in football, worth $1.733 billion to Real Madrid's $1.419 billion.

While Real Madrid has blockbuster deals such as its reported billion euro agreement with Adidas, it has not leveraged its brand equity to the same extent as United, failing to pursue the same range of partnerships.

"Real must now pay as careful attention to its off-pitch strategy as it does to its on-pitch performance. Newfound status as the world's most powerful brand ought to provide the club with ammunition in ongoing discussions with Emirates to renegotiate the shirt sponsorship; Real must not miss the opportunity," said David Haigh, CEO of Brand Finance.

Brand Finance's report also revealed that Premier League clubs continue to lead the world when it comes to commercialising their brands; six of the top 10 most valuable football brands are English. Title rivals Chelsea and Tottenham have recorded some of the biggest gains this year after successful seasons that saw Chelsea regain its status as England's best, under new manager Antonio Conte. Commercially, Chelsea stand to gain significantly through a reported £900 million, 15-year deal with Nike as well as from a near 50 per cent increase to the capacity of Stamford Bridge.

Tottenham is also expanding its home; the new White Hart Lane which will offer 61,000 spectators the opportunity to see Spurs on home turf. Tottenham's brand value is up 58 per cent on last year and Chelsea's 61 per cent to $1.248 billion. Sunderland's loss has been Newcastle's gain. The Magpies' promotion will see revenues return. As a result, brand value is up 92 per cent to $247 million, making Newcastle this year's fastest growing brand.

- rohma@khaleejtimes.com



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