Fortune quotes Richard Davies on sponsorship deals and the strength of brand/supporter loyalty in football
Manchester United's £648.4 million revenue figure was a Premier League record at the time and the club remains the second most valuable soccer club in the world behind Spanish giant Real Madrid, according to Forbes’ latest ranking.
While on-field success can garner revenue through prize money and ticket sales, the real money for Europe’s biggest teams is won off the pitch. This comes through broadcast and commercial agreements, and it’s here where United has led its rivals for decades.
Commercial deals make up 32% of revenue for English teams, according to Deloitte’s latest Annual Review of Football Finance report. For Manchester United, that figure is around 47%.
Richard Davies, Partner, provides comment for Fortune:
"Some of their [Manchester United] shirt sponsorship deals for example have led the market in terms of valuations over a number of years, and that’s where they’ve really differentiated themselves.
“That comes down to the value of their brand and all the markets they’re able to sell into because of their global fan base. And maximizing that revenue has been something which has been very successful over the last 20 years.”
Richard adds that soccer clubs will often tout the loyalty of their fans as an almost tangible asset when pitching to prospective investors or buyers.
Read the full article in Fortune here.
