Tuesday, October 18, 2011

Man U: World's Most Valuable Sports Brand

Despite doubts of Malcolm Galzer's ownership abilities, based on the debt incurred in buying the club and the fears of insolvency; Galzer has managed to turn the team around. Manchester United is now ranked as the most valuable sporting brand in the world. The team's brand value has more than doubled under the Glazer family's ownership. Numerically speaking, the club's brand value has increased 109% since 2005 to £412m in 2011. The brand's success may be attributable to Glazer's NFL based marketing. As the owner of the Tampa Bay Buccaneers, Glazer uses a policy of "on field performance underpins financial success" to grow the club. Glazer has taken that policy and applied it to Manchester United. This seems to be working, as in 2011 Man U became the most successful team in English football history, having won the Premier League 19 times. Also attributable to the brand's success may be it's 20 global partners. The list includes Nike, AON, Audi, and DHL; who together pay £110m a year to be affiliated with the club. Another key attribute is media. Under the Glazer's ownership, international and domestic media deals have increased by 150% to £120m. Lastly, Man U's brand represents more than 20% of the club's £2b proposed IPO valuation. With its recent approval to float on the Singapore stock exchange, the proceeds from a successful listing will allow the Glazer's to clear some of the club's debt. Unfortunately despite these figures outlining the Glazer's success with the team, members of MUST (Manchester United Supporters Trust) insist that the increase in the brand's value is directly related to the team's success on the pitch and the commercial department's achievements in securing deals, and not the Glazer's.

http://www.marketingweek.co.uk/sectors/sport/man-u-is-worlds-most-valuable-sports-brand/3030422.article

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