The clubs that participate in the Superliga, a competition founded by 12 of the most powerful football clubs on the continent, including the Spanish Real Madrid Barcelona and Atlético de Madrid, may lose EUR 2.5 billion in combined brand value, according to calculations by Brand Finance.
The negative impact of this new competition on the brand image value of these clubs could be between 2,500 and 4,300 million euros, as estimated by this consultancy.
This calculation takes into account an income loss of 1,100 million euros per year for the founding clubs, due to the decrease in billing for broadcasting rights, commercial revenues and revenues on match day (tickets, subscriptions and consumption in the stadiums) assuming that these teams are even in the Champions League national leagues, according to Brand Finance.
In addition, this consultancy has considered that the impact would also be transferred to other clubs that would not participate in this competition, to which it could deduct 25% of your brand equity.
This company calculates brand impact based on two international standards, ISO 10668 and 20671, which regulate different methodologies for calculating trademark appreciation gains.
Within these methodologies, Brand financing uses what is known as’ royalty savings’ (royalties or rights) ‘which calculates what percentage of the turnover of a company, or football club in this case, is due to the use of a brand that does not get rights paid because that club or company owns it.
“The Brand Finance rankings, based on the concept of saving royalties, indicate that since you own the brand, you don’t have to pay for the right of use. That payment you save is counted as income. percentage of sales with a 5-year forecast, ”explains Teresa de Lemus, CEO of Brand Finance Spain.
According to the director of this consultancy, the founding clubs of the Superliga with this new competition they foresee an increase in revenue that “does not take into account the risk they are taking for the ‘fans’ or the risk of reputation for their brands.
“Without counting on the double negative impact that the founders can suffer on their brands if guests do not accompany them,” added De Lemus in a statement.
The head of sports services of this consultancy, Hugo Hensley, believes that the opinions of the fans expressed in the networks are “overwhelmingly negative”since, according to their analysis, the number of negative messages is three to one greater than the number of positive messages.
“Negative sentiments such as this will inevitably lead to less spending on matchday and commercial revenues in the clubs’ countries of origin, which is still the main source of income for any European club,” said the company’s specialist. Marketing research.
In addition to the three Spanish clubs already mentioned, the Italians would participate in this competition as founders. Milan, Inter Milan and Juventus, and Liverpool, Manchester City, Chelsea, Manchester United and Tottenham in England. As explained by the promoters, the Super League would consist of 20 teams, 15 fixed-place and five classified based on athletic merit.
The league, which has been rejected by FIFA, UEFA and the national federations and leagues of England, Spain, Italy and Germany, would receive financial support from the US bank JP Morgan, which has set aside a fund of 3,250 million euros. will divide between teams to join.