Liverpool is the fifth most valuable brand in world football, according to a newly published report.
While seeing an 8.8 per cent increase in its brand value year on year, the Reds have slipped one place from last year’s list, leapfrogged by Manchester United after the Old Trafford side registered a 10.7 per cent increase against the 2022 list to take them to a brand value of £1.174bn in comparison to Liverpool’s £1.173bn.
The Brand Finance Football 50 Report 2023 detailed the brand value of European football’s top sides, with Premier League champions Manchester City having taken top spot for the first time after a 15.4 per cent increase put the brand value of Pep Guardiola’s team at £1.299bn, a figure that places them above Real Madrid (£1.258bn), Barcelona (£1.185bn) in second and third, respectively, and United and Liverpool who round off the top five.
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Brand value is calculated by assessing the earnings of clubs that are specifically related to brand reputation. Clubs own and control earnings by owning the trademark rights.
Every year, brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes around 100 reports, ranking brands across many sectors and countries. The football industry’s top 50 most valuable and strongest brands are included in the annual Brand Finance Football 50 ranking. This valuation, generated by professional accountants in compliance with ISO brand valuation standards, seeks to estimate the net economic benefit that a brand owner would achieve by licensing the brand in the open market.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.
Through these metrics, Liverpool’s brand strength is seen as the second highest in world football, registering 93.3 out of 100 to give it a AAA+ rating. Only Real Madrid’s brand strength is higher (94.8) with Barcelona, Manchester United and Manchester City making up the rest of the top five.
“Premier League brands make up 45 per cent of the value of the top 50, and the league has the highest number of brands (18) represented; the seven from London is more that Serie A or Ligue 1 in total,” said Hugo Hensley, associate director at Brand Finance.
“This is most obviously due to the financial power Premier League teams possess thanks to huge broadcasting contracts, however, this is merely a reflection of the attractiveness of the league and its clubs to fans and sponsors around the world.
“Brand Finance market research shows that the league is seen as the most competitive and exciting league to watch, and is perceived as having more world class players and clubs than any other league, while Manchester United and Liverpool were rated first and third respectively for the metric ‘the team has a global fan base’.
“Relatively equal distribution of broadcasting revenue, and the league’s reach allowing even smaller or newly promoted clubs to secure significant sponsorships, perpetuates the competitiveness that keeps the league exciting.
“Manchester City’s recent dominance could be considered a threat to the competitive nature, winning the title five times in the past six years, and echoing a problem seen in Bundesliga, Ligue 1 and less recently in Serie A.”
City have continued their ascent as both a competitive and financial force, with the club’s approach yielding yet more off-field success that is set to make the challenge for honours even more difficult for the likes of Liverpool in the coming seasons.
Roel de Vries, chief operating officer at City Football Group, the owners of Manchester City, said in a statement: “Being recognised as the world’s most valuable football club brand reflects the phenomenal growth story that Manchester City has had in recent years.
“This achievement recognises the evolution of not just the brand, but the club as a whole. The club has been performing consistently and has broken records on and off the pitch this season, whilst operating in a way that promotes financial sustainability.
“As we look to the future, we want to keep investing in the right things – our football talent, the city of Manchester and our local community, infrastructure and fan experience. We have a proven track record of innovation and are excited for the next chapter in this club’s great history.”
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