Where does this article? And what has to do with branding?
Well, everything comes from the crisis. The economic crisis.
Football in Italy over the past decade has experienced a sharp downturn due to the fact that the companies of the various teams no longer had the same economic strength to compete with other European clubs, especially with Spain, England and Germany.
Yet the crisis has affected them too. What has changed?
Two main things, ignoring the different taxation.
First, the entry of new shareholders and investment funds in the Football Clubs most renowned of these countries, if not even a complete sale to investors mostly Arabs, Russians and Americans.
Second, but definitely not least, branding!
The first to move in this context was the Manchester United probably due to the fact of being one of the first teams to have a property of a nationality other than that of the country in which the team plays. In fact the club in terms of brand, but also of sporting results came under the ownership of the great American entrepreneur who died in 2014 Malcolm Irving Glazer, owner also of the Tampa Bay Buccaneers (NFL), which brought the typical American mentality in which sports and teams are managed just like any other industry’s brand and where it gives equal importance of the slope of sports at that of marketing.
Data of 2015 say that the best football company regarding the commercial revenues is Paris Saint German, the richest club is Real Madrid and the brand with more value is Manchester United.
Just to understand of what numbers we are speaking. The commercial revenues in 2015 of PSG are 327.7 million euros, follows the Bayern Monaco at 291.8 and after the Real Madrid also this it over the 250 million. (Data Deloitte Football Money League)
The podium of the richest clubs finds at the top position the Real Madrid with a turnover of 549.5 million euro, after there is the Manchester United (518 million) and Bayern Monaco (487.5 million).
As we always say, however, companies are rich, brands have value.
In the ranking of brand value we see at the top the Manchester United that for the first time in football history breaks through the roof of the one billion with a total value of 1.206 billion euro. Bayern Monaco are second to 933 million and third the Real Madrid with a value of 873 million.
Ok, behind all these accounting figures there is a strong trend towards the development of the brand that, even and especially in football is shown as a lever infallible in generating wealth for the companies.
In Italy it was just the soccer teams to starting using the lease-back contracts then also followed by companies in various industries.
But if the country, king in the capacity to develop of the football brand is England, there is a reason and this reason is not legal or financial, but of mindset.
In fact, we keep in mind that in the first 50 brands of clubs with more value, there are 17 English that are worth 48% of the total value of the brands considered, Germany and Spain respectively affect 16% to 15%, while Italy and France for 9% and 7%. (Data Interbrand Finance)
England is the country that best works on the brand because it is the one who first approached the concept of international brand by referring to football teams. Their mentality is more prepared to accept football as spectacular show, international, surrounded by merchandising and events and not only as a popular weekly ritual tied exclusively to the city.
The sports culture lived as pagan show and not as untouchable sacred rite is typical of the United States and Britain was the first European country to move towards this new conception of football, creating stadiums of property that may become real centers attraction like amusement parks, pushing hard on merchandising in domestic and foreign, by arranging summer tours of preparation in states where the passion for European football is exploding due to the possibility of a large number of users who can now follow the teams with the TV or the Web.
The subscription campaigns have become real sales campaigns, achieving year-on-year new advertising tailored.
The ability to develop the quality of the brand and brand awareness it translates in higher possibility of receiving big money by commercial sponsors, both from technical supplies sportswear and either from the main, with the logos on the front of the uniforms during the season they do the lion’s share on the calculation of the commercial revenues.
The value of the brand and the number of fans, that if we were in another area would call potential clients, are also one of the discriminating factors to clinch good results with regard to the other main income, ie those arising from television rights.
Indeed, the broadcasting companies are definitely more inclined to pay high broadcast rights when the league and teams belonging are established brands and followed worldwide.
Again the example is England where Sky has won the tender with a bid of 6.9 billion for the transmission of 75% of the matches for the next three seasons.
This finding is perhaps the most important for what we are talking about, that is growth-minded split level in a country with regard to the branding in this sector.
Think about the fact that Premiere League is seen regularly by 3 billion people in 170 countries and is the second most watched league in the world after the American NFL, as it wanted to prove.
This means that American culture to branding the clubs works and that the more a country is able to accept this mentality more will be able to internationalize and obtain the deserved economic benefits that will make it competitive at the highest levels.
So improve the brand for football teams and also for all those companies that have a direct contact with the public is definitely the first step that can be done to increase the appeal and commercial revenues, as well as the estimated value of the brand and the possibility of using the lease-back contracts that in expanding phase the brand can be a great economic tool to support further investment.
Where does this article? And what has to do with branding?