Friends, according to Forbes, Manchester United is the fourth most valuable football team in the world, worth approximately $4.2 billion.

The Top 5 Most Valuable Clubs

As one of the few publicly traded professional sports teams in the world, we take a closer look at how one of the most recognized global brands Monetization of its intellectual property.

United's finances can be broken down into three broad categories:

Before the COVID-19 pandemic - commercial revenue accounted for around 44% of United's total revenue, while broadcast and matchday revenue respectively Accounting for approximately 38% and 18% of total revenue.

In the area of ??commercial revenue, Manchester United monetizes its global brand in three main ways:

Undoubtedly, sponsorship represents the largest commercial revenue. United has more than 20 "global partners" at any one time, selling everything from airline and hotel partners to wine, spirits and fuel partners.

The point is, whether or not a category has a direct link to the world's most popular sport, global brands like Manchester United will profit from that relationship.

Partners include

Earlier this year the club signed a new major shirt sponsorship deal with German software company TeamViewer. The deal officially replaces Chevrolet, which has been in place since 2014, and makes TeamViewer the sixth shirt sponsor in the club's history.

TeamViewer will reportedly pay Manchester United $325 million over the next five years, or $65 million per year. This is the second largest shirt sponsorship deal in the world.

In a special year, Manchester United brought in approximately US$240 million in sponsorship funds - accounting for more than 25% of the club's total revenue.

Sponsorship Revenue

In addition to the lucrative revenue stream from sponsorship, Manchester United has done an excellent job of monetizing its globally recognized brand. They sell everything from T-shirts and sandals to coffee mugs and bedspreads, all branded and trademarked by Manchester United.

Retail and Merchandise Revenues

The good news: Business revenues have proven resilient throughout the COVID-19 pandemic. For example, Manchester United's commercial revenue has only fallen by around 5%, despite games being closed to fans for more than a year.

Annual Commercial Revenue (Revenue figures for specific categories are estimates based on current currency exchange rates.)

Overall, commercial revenue accounted for 55% of United's 2020 revenue, a high As usual.

In addition to indirect global exposure from commercial partners, Manchester United benefits directly from live content distribution through global media rights deals. They also have a television channel of their own, MUTV, which provides Manchester United programming to more than 56 countries around the world.

Broadcasting Revenue

TV-related revenue has dropped significantly due to COVID-19 - down about 44% last year - but considering their average annual TV revenue a decade ago At just over $100 million, growth is still impressive.

Keep in mind that broadcast revenue varies significantly from year to year depending on the performance of Manchester United's first team.

Here’s an interesting stat: with a capacity of over 74,000 fans per game, Old Trafford is the largest stadium in the Premier League. Even better, United have averaged 99% attendance in the Premier League for 21 consecutive years.

The result? In a typical year, Matchday brings in nearly $150 million in revenue.

Game Day Revenue

The absence of fans due to COVID-19 has exceeded expected levels.

Still, as restrictions are lifted and fans return to stadiums around the world, pent-up demand is expected to lead to a return to pre-pandemic levels of revenue soon.

We all know the statistic by now: from 2011 to 2020, the average team value in the NFL, NBA, NHL, MLB, and Premier League increased by more than 500%.

Manchester United is no exception, growing from a $1.8 billion valuation in 2010 to $4.2 billion today.

It turns out that professional sports teams and leagues are high-quality, scarce assets with strong value and room for appreciation. But post-COVID, it will be interesting to see how clubs like Manchester United further optimize their revenue streams to make up for lost profits.