Brand Finance Report: Collingwood Australias most valuable club brand

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Collingwood is most valuable club brand in Australian sport, Brisbane Broncos top NRL brand ladder​

08 October 2024

• Collingwood is most valuable AFL club brand at $145 million, well ahead of Carlton at $115 million and Richmond at $101 million
• Brisbane Broncos brand is valued at $124 million, ahead of Penrith ($108m), Souths ($73m) and NQ Cowboys ($72m)
• AFL Premiers Brisbane is 11th amongst AFL brands, 17th amongst both codes; NRL Premiers Penrith is 2nd amongst NRL brands, 4th amongst all Australian football club brands
• Australian football club brands are amongst the most valuable football club brands in the world

SYDNEY, 9 October 2024 – Collingwood is Australia's most valuable football club brand, with an impressive brand valuation of AUD145 million, according to a new report from Brand Finance, the world's leading brand valuation consultancy. This measurement reflects the club’s long-term success both on and off the field, with its star-studded roster, rich football heritage, and highly influential partnerships all pivotal in elevating its status within the league.

At the heart of Collingwood’s success is its ability to maintain a consistent perception of excellence, driven by a team of marquee players that excite fans and enhance the club’s brand strength. This strong connection with the community, coupled with the club’s historical significance in Australian sport, makes it a revered and formidable entity in the AFL.

Mark Crowe, Director, Brand Finance commented:
“This valuation of Australia’s biggest sporting clubs shows that despite being almost entirely domestic competitions, Australian brands are as strong as some of the brands playing in the world’s richest and biggest European and American football leagues. The Australian clubs have incredibly valuable assets in the form of their brands – value that can be measured and built for the benefit of the AFL and NRL.”

Brisbane Broncos Leads NRL for brand value and strength
The Brisbane Broncos have reaffirmed its dominance as the number one club brand in the NRL, with a brand value of AUD124 million and the strongest brand strength score of 81. Despite not securing a premiership since 2006, the Broncos' brand equity drives their commercial success. Since its inception in 1988, the club has remained the flagship for Queensland rugby league, bolstered by its monopoly on Brisbane's market until the Dolphins' arrival last year.

Big Victorian Clubs Lead AFL; West Coast Leads Non-Victorian AFL Clubs
Collingwood’s Victorian rivals Carlton and Richmond Football Clubs also rank highly in the AFL brand landscape. Carlton, with a brand value of AUD115 million, is the second most valuable AFL club brand, despite a nearly 30-year Premiership drought affecting its perceived ambition. Richmond, valued at AUD101 million, sits in third place, known for its blend of tradition and recent success.

Among the non-Victorian AFL clubs, the West Coast Eagles lead with a brand value of AUD68 million, excelling in fan engagement and stadium experience. In South Australia, Port Adelaide Football Club leads with a brand valuation of AUD67 million, known for its passionate fanbase and innovative approach.

Sydney Swans and Brisbane Lions Reign in the North

Amongst the northern AFL clubs, the Sydney Swans, with a brand value of AUD66 million is the most valuable club brand. While Brisbane won this year’s AFL on-field premiership, the Brisbane Lions trails close behind with a brand valuation of AUD64 million. Both clubs maintain their edge over newer teams such as Greater Western Sydney Giants and Gold Coast Suns, which still face challenges in building their brand value and fan base.

Penrith Panthers Surge Ahead

The Penrith Panthers, in conjunction with winning four successive premierships, have seen its brand value skyrocket to AUD108 million, positioning it as the second most valuable NRL club brand.

The privately owned South Sydney Rabbitohs are the third most valuable NRL club brand, with a value of AUD73 million, marginally ahead of the North Queensland Cowboys at AUD72 million. Leveraging its "rich heritage and history", the Rabbitohs maintain a strong brand presence despite recent inconsistent on-field performance. Its financial independence, buoyed by commercial assets and loyal fans, continues to bolster the Rabbitohs as a powerhouse in the NRL.

Queensland NRL Teams Continue to Thrive

The North Queensland Cowboys have established itself as a major NRL brand with a value of AUD72 million. Their new Queensland Country Bank Stadium has been instrumental in growing its commercial revenues, propelling it to become the fourth most valuable NRL brand. In only their second year, the Dolphins have made a strong entrance into the league with a brand value of AUD49 million. Notably, their arrival has not diminished the Broncos' value, indicating a growing market for NRL in Queensland.

Melbourne Storm’s Impressive Rise in a Non-Traditional Market

In the heart of Australia’s sporting city, the Melbourne Storm have become one of the NRL’s greatest success stories. With a brand value of AUD55 million and equal third in brand strength (77), the Storm have defied original expectations, excelling in areas such as "ambition", "iconic sponsors", and having a "great stadium". Despite challenges, such as their 2010 salary cap breaches, Melbourne's consistent success has solidified its position as an NRL leader.

Collingwood is most valuable club brand in Australian sport, Brisbane Broncos top NRL brand ladder | Press Release | Brand Finance

Collingwood is Australia's most valuable football club brand, with an impressive brand valuation of AUD145 million, according to a new report from Brand Finance, the world's leading brand valuation consultancy. This measurement reflects the club’s long-term success both on and off the field...

brandfinance.com

 

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Definition of Brand​

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength​

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach​

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.