Clubs participating in the Superliga, a competition founded by 12 of the strongest football clubs on the continent, including the Spanish real Madrid, Barcelona and Atlético de Madrid, could lose 2.5 billion euros in the combined value of the brand, according to calculations by consulting firm Brand Finance.
The negative impact of this new competition on the value of the brand image of these clubs could be between 2,500 and 4,300 million euros, according to the estimates of this consulting company.
This calculation considers a loss of income of 1,100 million euros per year for the founding clubs, due to the decrease in the billing of broadcasting rights, commercial revenues and revenues on the day of the match (tickets, season tickets and consumption in stadiums), assuming that these teams could not even compete in the Champions League or their national leagues, according to Brand Finance.
In addition, this consultancy considered that the impact would be transferred to other clubs that would not participate in this competition, in which could decrease 25% of the brand’s equity.
This company calculates the impact of the brand based on two international standards, ISO 10668 and 20671, which govern different methodologies for calculating brand value increases.
Within these methodologies, Brand Finance uses the so-called “saving of” royalties (royalties or fees) “according to which it is calculated what percentage of the turnover of a company or a football club in this case is due to the use of a mark that will not be paid rights, because that club or company owns it.
“The Brand Finance ranking, based on the concept of saving royalties, indicates that since you are the owner of the brand, you do not have to pay for its right to use. That payment you save is considered as income, which is We calculate a percentage of turnover with a 5-year forecast “, explained Teresa de Lemus, General Manager of Brand Finance Spain.
According to the director of this consultancy, the founding clubs of Superliga with this new competition they anticipate an increase in revenue that “does not take into account the risk they take in front of“ fans ”or the risk of reputation in their brands.
“Without counting on the double negative impact that founders can suffer on their brands if guests do not accompany them,” de Lemus said in a statement.
The head of the sports services of this consultancy, Hugo Hensley, considered that the opinions of fans expressed in the networks are “overwhelmingly negative”, because, according to their analysis, negative posts exceed the number of positive posts by a ratio of three to one.
“Negative feelings of this kind will inevitably lead to lower spending on match revenue and commercial revenue in the clubs’ home countries, which continues to be the main source of income for any European club,” said the company’s specialist.
In addition to the three Spanish clubs already mentioned, the Italians will participate in this competition as founding members. Milan, Inter Milan and Juventus, as well as the English Liverpool, Manchester City, Chelsea, Manchester United and Tottenham. As its promoters explained, the Superliga would include 20 teams, 15 with a fixed place and five that would be classified according to sporting merits.
The competition, which was rejected by FIFA, UEFA and national associations and leagues in England, Spain, Italy and Germany, would have the financial support of the US bank JP Morgan, which has set aside a fund of 3,250 million euros to distribute among teams to it joins.