Brand Finance’s methodology takes in factors such as matchday revenue, broadcast revenue and commercial revenue. It then produces a Brand Strength Index (BSI) score out of 100 and uses this to extrapolate future revenue estimations using royalty rates.
2019 marks the first time in nine years that Real Madrid have topped Brand Finance’s rankings. The combination of commercial revenues and on pitch success in the UEFA Champions League has propelled Los Blancos to the apex of the value pyramid.
Real Madrid received €70 million (US$78.4 million) from sponsors Emirates and €110 million (US$123.2 million) from Adidas, whilst their matchday revenues totalled €143 million (US$160.2 million).
Bryn Anderson, Brand Finance Director, said: “Real Madrid have shown this year who truly reigns supreme in the world of football. They triumph not only as the most valuable and strongest brand but their enterprise value and stadium are also ranked second to none.”
Despite Madrid’s BSI actually dropping from 96.2 to 95.5, the club were able to overtake Manchester United as the 20-time English champions’ brand value fell 5.8 per cent year-on-year.
The Red Devils have experienced a tumultuous existence since the retirement of Sir Alex Ferguson, going through four managers in six years.
The poor performances on the pitch and lack of exposure from not playing regularly in the UEFA Champions League, have seen public perceptions of the brand drop.
