Ahead of its imminent sale, Manchester United’s corporate value has been valued at around £3.6bn by Brand Finance, the world‘s leading brand valuation consultancy that assesses their strength and quantifies their financial value to help organizations of all kinds to make strategic decisions. Conversely, the Glazer family, who own the English club, are said to be asking for up to £6bn.
Hugo Hensley, Head of Sports Services at Brand Finance, said:
“While the charter hints at the potential for contenders, Sir Jim Ratcliffe’s INEOS group and Qatari billionaire Sheikh Jassim, to overpay the club, at the same time we need to analyze several factors justifying the potentially high cost to a buyer, which they all revolve around the strength of the Manchester United brand.”
According to analysis by Brand Finance, Manchester United boasts the fourth strongest brand in football and ranks among the best brands in the world. Man Utd’s brand value was calculated at £1.06 billion in the 2022 ‘Football 50’ ranking, made by Brand Finance.
The £6bn asking price for the club is therefore due to its growth potential and ability to diversify revenue streams through broadcasting, sponsorships and merchandising. In terms of international revenue, Manchester United’s global popularity, particularly among football fans in India and China’s growing middle class, presents promising future opportunities to boost global reputation and cash flow.
Owning a brand like Manchester United offers other benefits for prospective owners. For example, it would improve sponsorship and partnership opportunities, potentially delivering the equivalent of £50-100m spent on advertising each year. This is immediately relevant to Ratcliffe’s INEOS group. Furthermore, the scarcity of world-leading brands such as Manchester United adds prestige for buyers, driving up the cost of the football club even more.
However, it is the influence and benefits of national branding where Brand Finance sees value. Leveraging the strength of the club’s brand brings significant benefits such as increased tourism, entertainment and potential increases in international trade. For buyers like Sheikh Jassim, the Manchester United takeover is in line with Qatar’s strategy to use sport to make the small nation stand out in the world, as it did for the 2022 FIFA World Cup.