May 26, 2014, 1:01 PM EDT
Manchester United haven’t quite nosedived from global giants to whipping boys, yet, but their value around the globe is taking a slap after their worst season in Premier League history.
After finishing seventh last season in the PL and failing to qualify for European soccer next season, the value of United’s brand has been hit hard as it is down by $98 million according to a study conducted by consultancy group, Brand Finance.
Saying that, United’s brand is still worth $739m and it is the third most valuable soccer club in the world behind Bayern Munich and Real Madrid. Following their Champions League title success last weekend, Real’s brand will be boosted considerably and they already boast the biggest sales of any team in the world.
The report looked deep into the implications that results on the pitch have on financial performance off it, as Bayern Munich came top of their brand ranking for the second-straight season. Five of the top eight clubs in the world are from England, with Arsenal, Liverpool, Chelsea and Manchester City joining United as the biggest brands in soccer.
United may soon found themselves overtaken by that chasing pack as the report warned that “another season in the wilderness, outside the Champions League will see brand value truly plunge, and leave few sponsors willing to do a deal with the Red Devils.”
Up until now “shrewd commercial management” has allowed the Old Trafford club to still churn out a profit of $17 million for the three months up to the end of March, while they earned record revenues of $170 million.
However if their performances on the pitch continue to slide under new manager Louis van Gaal, expect it to hit United hard in the pocket and have a huge impact on their brand.
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