According to the most recent ‘Brand Finance Football Annual’ survey, the effect of COVID-19 has seen the top 50 most valued football clubs lose about €751 m in brand value.
Owing to the global pandemic this is the first time the top 50 clubs have lost brand interest in six years. The study suggests the rationale for this is due to a lack of sources of match-day, broadcast, and commercial revenues.
Real Madrid remains at 1,42 billion euros the most popular football brand in the world. The party, however, has endured the consequences of the global health pandemic, with its value dropping by 14 percent from last year.
Real Madrid has seen a decrease in its projected market value since last season, as bitter rivals FC Barcelona are now just €6m behind the club due to the Catalan side’s ‘strong and diverse revenue generation.’
In England meanwhile, the value of Manchester United alone has plummeted by an estimated £ 143 m according to estimates from Brand Finances. Regardless of the drop of popularity of the Premier League side, Man United also reduced the table to third after being overtaken by Barcelona.
Overall, English clubs dominated the list with six clubs in the top ten. In addition, 19 teams are in the top 50 list of the business, with Leicester City showing the greatest change by reporting growth of over 40 percent compared to last year.
Liverpool has also overtaken Manchester City on the list this season, equivalent to the Premier League. Liverpool has reported a six percent rise with the club being priced at €1.26 billion in fourth. Man City also experienced a loss of £ 118 m which resulted in a drop of 10.4 per cent.
The remaining Premier League sides in the top 10 were Chelsea (€949 million), Tottenham (€783 million) and Arsenal (€719 million) who put 8, 9 and 10 respectively.
Speaking of the annual report on Brand Finance Football, Brand Finance Managing Director Richard Haigh stated: “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, have 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.”