English Premier League winners Manchester City have overtaken Barcelona and now have world football's second best brand value, according to a new study.
City were runners up behind Uefa Champions League and La Liga winners Real Madrid in Brand Finance's Football 50 2022 report.
The report said City's brand value had increased 19 per cent to just over €1.3 billion ($1.39bn), placing them just ahead of Barcelona, whose value was up 5 per cent to a little under €1.3bn.
Brand value refers to the present value of earnings specifically related to brand reputation.
"Brand Finance’s 2022 football fan research shows that the Manchester City brand has grown in perception and following, scoring highly in metrics such as ‘the club is ambitious’ and ‘the club has a global following’," the report said.
City were named the highest revenue-generating club in the Deloitte Money League for the first time in their history, and Brand Finance said the club's high revenue "can be credited to their continued on-field performance in the 2022 campaign ― winning the English Premier League and reaching the 2021 European Champions League Final and 2022 semi-final".
City chairman Khaldoon Al Mubarak said this week that the club have emerged from Covid-19 in a robust financial position and are now ready to go "from strength to strength".
Rivals Manchester United fell to fifth place in the rankings — their lowest yet, as they ended the season with their lowest Premier League points total, although their brand value did rise by 11 per cent.
"Despite failing to qualify for the European Champions’ League group stages as well as a long run of poor form on-field, Manchester United are still able to record growth in both brand value and brand strength, reverting a three-year decline in value," the report said.
"Following the announcement of the European Super League last year, United were one of the six English Premier League clubs who lost brand value as a result. This year’s brand valuation shows that United have substantially recovered their previous brand strength, and still remain strong among international audiences."
Real Madrid recovered from a 10 per cent slump last year amid Covid-19 uncertainties and weaker fan sentiment as a result of the floundering plan for a European Super League.
Its brand value rose 19 per cent in the past year to €1.5bn, driven by a combination of improved brand strength and a positive revenue trajectory.
"Real Madrid are now clearly the dominant brand in the global football business," said Hugo Hensley, head of sports services, Brand Finance.
"For four years, they have been the most valuable brand thanks largely to their business success off the field. However, their continued success on the field has delivered them the brand double, and they are now also the world’s strongest football brand. Even opponents recognise, respect and admire the reputation of Real Madrid."
Middle East investment and sponsorship is prominent among the top 10 teams.
Manchester City are owned by Abu Dhabi's City Football Group, while Paris Saint-Germain are owned by Qatar Sports Investments. Real Madrid and Arsenal meanwhile have sponsorship deals with Dubai's Emirates airline. Outside the top 10, Emirates also sponsors 17th-placed AC Milan, 35th-placed Olympique Lyonnais and 48th-placed Benfica.
