Marketing Report
Real Madrid is the world’s most valuable football club brand, report news

Real Madrid is the world’s most valuable football club brand, report

Real Madrid (brand value up 16% to EUR1.7 billion) is once again the world’s most valuable football club brand, surpassing 2023’s winner Manchester City FC, (brand value up 7% to EUR1.6 billion) according to new data from Brand Finance, the global brand valuation consultancy.

With a brand strength index (BSI) score of 96.3/100 and an AAA+ rating, Real Madrid is not only the world's strongest football club brand but also ranks among the strongest brands globally, surpassing renowned names like Google, Coca-Cola, Ferrari, and Rolex.

The club’s exceptional brand strength derives from its perfect scores across several metrics in Brand Finance’s research, including squad investment, stadia, and sponsorships. Real Madrid’s strategic investments in star players like Kylian Mbappé and Jude Bellingham are expected to further boost record-breaking revenue through increased matchday and merchandise sales, while enhancing global visibility and fan engagement.

Football club brands are an increasingly valuable asset as companies pour billions into team sponsorships. The global football sponsorship market was valued at USD39.3 billion in 2023 and is projected to be worth USD57.9 billion by 2032.

Hugo Hensley, Head of Sports Services, Brand Finance: “With global football sponsorship forecast to be worth nearly USD58 billion in less than a decade, football clubs are investing in their brands’ strength and value, aiming to capture a piece of this lucrative and growing market. Brand Finance’s data shows that club’s commercial income is correlated to the strength of the brand, especially at the top of the pile. Real Madrid’s return to the top of the Brand Finance 2024 Football 50 ranking is a testament to the club’s powerhouse brand management, and sponsorships such as their 8-year megadeal with Adidas help to strengthen Real Madrid’s status as the most valuable football club brand in the world.”

Manchester City FC follows Real Madrid as the second-most valuable football club brand, following a year of exceptional on-pitch success. In late 2023, City became the first English club to hold the Premier League, FA Cup, UEFA Champions League, UEFA Super Cup, and FIFA Club World Cup titles simultaneously. This historic achievement has significantly increased commercial and matchday revenue, enhancing the club's financial power. Manchester City's BSI score also improved to 92.8/100, earning an AAA+ rating.

Hugo: “Brand Finance research found that Manchester City FC excels in attributes including its ambitiousness, passionate fanbase, and effective management under Pep Guardiola's widely praised leadership. Star players like Erling Haaland and Phil Foden have further boosted the club’s marketability and on-field performance, solidifying Manchester City's status as a global football powerhouse.”

FC Barcelona (brand value up 12% to EUR1.5 billion) remains the world’s third-most valuable football brand despite facing significant financial challenges, notably its restricted salary cap. This cap severely restricts Barcelona's ability to sign and retain top players for the upcoming 2024/25 season, potentially affecting its on-pitch performance, competitiveness, and appeal to sponsors.

That said, FC Barcelona’s youth academy La Masia has been instrumental in producing star talent for the club without massive spending on expensive transfers, with young talents like Lamine Yamal, Pau Cubarsi, and Fermin Lopez bolstering the club’s competitiveness. As such, FC Barcelona has noted a slight increase in its BSI score to 92.7/100, underscored by strong scores for its star players, passionate fanbase, and rich history and heritage.

The English Premier League has the most clubs (17) featured in the Top 50 ranking, as well as by far the highest value of any league, at EUR8.1bn compared to LALIGA’s EUR4.5bn in second place.

 Six of these clubs feature in the top 10, with Manchester United FC (brand value up 3% to EUR1.4 billion) and Liverpool FC FC (brand value up 1.5% to EUR1.4 billion) retaining 4th and 5th positions respectively. Arsenal FC, Tottenham Hotspur FC, and Chelsea FC retain 8th, 9th, and 10th ranks, respectively.

Liverpool is also the world’s second-strongest football brand, with its BSI score rising to 93.7/100, commanding an equivalent AAA+ rating. The Reds have seen improvements over Klopp’s reign, not just in sporting metrics, but significantly in ESG areas too. ‘The Red Way’ initiative, established to drive the club’s sustainability goals, has clearly resonated with fans, as the brand is perceived as the strongest in its league in all three key metrics; committed to environmental sustainability, being a positive force in the community, and being ethically owned and governed.

French powerhouse Paris Saint-Germain FC (PSG) (brand value up 7% to EUR1.2 billion) has dropped one position overall to rank in 7th, with German club FC Bayern Munich (brand value up 12% to EUR1.2 billion) now inching ahead in 6th.

Notably, the departure of global superstars Messi, Neymar, and Mbappé is expected to impact the club’s commercial outlook, potentially leading to reduced merchandise sales, decreased sponsorship values, and a possible decline in international fan engagement. That said, PSG's strong on-field performance continues to drive its global reputation, underscored by a considerable increase in its BSI score to 86.2/100.

German football club Bayer 04 Leverkusen (brand value up 72% to EUR 333.6 million) saw the biggest brand value increase in the table, as well as a significant 9-point rise in its brand strength index to 70.5/100. The club achieved historic milestones in 2024, winning its first Bundesliga title and the German Cup.

These accomplishments have boosted the club’s brand image, noting strong scores for being ambitious, playing exciting football, and having a passionate fanbase. The club also notes a high score for being well managed, bolstered by the leadership of former footballer Xabi Alonso. The club will play in the Champions League next year, further boosting exposure and revenues, and helping to cement a legendary period in the club’s history.

www.realmadrid.com

www.brandfinance.com

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