Soccer Teams Brand Value Drop Close To $1 BillionPublished August 8, 2020 by Sol FH
The Novel Coronavirus continues to disrupt entire industries and this time, it's affecting soccer teams' brands directly.
Like it or not, sports is big business. It is one of the biggest businesses with teams worth billions of dollars and fans all over the globe. The goal for most sports teams is to win championships and make money. Due to the Novel Coronavirus, teams have still been winning championships, but, they have not been making the same money they used to just a few months ago.
All professional soccer teams have marketing and PR teams that have worked tirelessly to build teams' brands and make them more appealing to a wider range of fans. But, according to the latest Brand Financial Football Annual report, the top 50 soccer teams on the planet had lost around $900 million in brand value, with even more losses expected.
In the last five years, teams across the globe have seen a steady climb in their brand value. This is always a good thing for owners, shareholders, and players. However, COVID-19 has put a stop to that steady climb and forced teams to reassess and start rebuilding their strategies from scratch.
The main reason for the mass losses is primarily due to cancellations of game broadcasts, but, ticket sales to venues and commercial partnerships are also big factors.
Real Madrid Holds onto Top Spot
Real Madrid, still the most valuable soccer brand in the sector is worth $1.68 billion. That is a 14% drop from how they were valued in 2019. Barcelona did not drop as steeply as Real and is now only $7.11 million behind them.
In the Premier League, Manchester United has suffered a loss to around $187.4 million, and dropping behind Barcelona and Liverpool to the fourth spot on the most-valuable list.
One of the shockers has been Leicester, who has jumped numerous spots on the list with 40% growth year-on-year. They were given a push by striker James Vardy after winning his first-ever Golden Boot award. With the win, he has become the oldest player in the Premier League to win the honor.
After winning the Premier League, Liverpool has seen its brand increase by 6%.
In a statement by Brand Finance Managing Director Richard Haigh, he said that “Top-level football has been confronted with the largest existential threat since the Second World War. Loss of income, coupled with health concerns about mass gatherings, has raised question marks about the future of the industry and the financial resilience of clubs across all levels. The full damage of the COVID-19 crisis has yet to unfold and it is not inconceivable there will be casualties in the form of club bankruptcies and changes in ownership.”