The clubs participating 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, could lose 2.5 billion euros in combined brand value, according to calculations by the consulting firm 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, according to this consulting company.
This calculation contemplates a loss of revenue of 1.1 billion euros a year for the founding clubs, as a result of the fall in turnover for broadcasting rights, commercial income and income on match day (tickets, season tickets and consumption in the stadiums) assuming that these teams could not compete neither in the Champions League nor in their 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 subtract 25% of its brand value.
This company calculates brand impacts based on two international standards, ISO 10668 and 20671, which regulate different methodologies for calculating the value increases of trademarks.
Within these methodologies, Brand finance uses a so-called “royalty ‘(royalty or rights) saving” which calculates what percentage of a company’s turnover, or football club in this case, is due to the use of a brand of which there is no need to pay royalties because this club or company owns it.
“Brand Finance’s ranking, based on the concept of ‘royalty’ savings, indicates that as the owner of the brand you don’t have to pay for its right to use. We count this payment that you save as income. , which is a percentage of turnover, which we calculate with a forecast of 5 years “, explained Teresa de Lemus, managing director of Brand Finance Spain.
According to the director of this consultancy, the founding clubs of the Superliga they anticipate with this new competition an increase in revenue that “is not taking into account the risk they take in front of the ‘fans’ or the risk of reputation in their brands.”
“Not to mention the double negative impact they can suffer on their brands from the founders if on top of that they are not accompanied by guests,” de Lemus added in a statement.
The head of sports services at this consultancy, Hugo Hensley, Has considered the views of fans expressed in the networks are “overwhelmingly negative”, Since according to his analysis the negative publications surpass the positive ones in a proportion of three to one.
“Negative feelings like this will inevitably lead to lower spending on match day and commercial income in the countries of origin of the clubs, which remains the main source of income for any European club,” said the specialist. this market research company.
In addition to the three Spanish clubs already mentioned, the Italians would participate in this competition as founding members Milan, Inter Milan and Juventus, and the English Liverpool, Manchester City, Chelsea, Manchester United and Tottenham. According to its promoters, the Superliga would include 20 teams, 15 with a fixed place and five that would be classified by sporting merit.
The competition, which has been rejected by FIFA, UEFA and the national federations and leagues of England, Spain, Italy and Germany, will have the financial support of the American bank JP Morgan, which has reserved a fund of 3,250 million euros to be distributed among the teams that join.