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Football Media Value Report Esirg Feb07

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Football Media Value Report Esirg Feb07 ESIrg Universidad de Navarra FO O TBALL M EDIA VALUE REPO RT ESIrg FEBRUARY 2007 Real M adrid retains the status of w orldw ide m edia leader. Ronaldinho keeps the first position in the individual ranking, w hile Cristiano Ronaldo and Cannavaro experience a huge progression. - ESIrg (Econom ics, Sport and Intangibles research group) has developed its own m ethodology as part of a broader project to evaluate intangibles in the Sport business. - The study exam ines the im pact of sport achievem ents on the m edia value of team s. It also stresses that stickers have m edia im pact 6 tim es bigger than that of defenders. Report elaborated by Francesc Pujol ESIrg and Departm ent of Econom ics, Universidad de Navarra Pedro G arcia-del-Barrio ESIrg and Universitat Internacional de Catalunya www.unav.es/econom /sport We gratefully acknowledge the collaboration of: Juan Carlos M olero Departm ent of Econom ics, Universidad de Navarra M iguel Cardenal Universidad de Extrem adura and the financial support provided by the research grant M EC: M inisterio de Ciencia y Tecnología (SEJ2004-04649) February 2007 ESIrg 1 Universidad de Navarra Contents Sum m ary of ESIrg report - February 2007. 1. Introduction: state of football m edia value at the m iddle of the season 2 Custom ary sections 2. M edia Value of the football players 4 Zoom : Forecasting the rewards of top football players 14 3. M edia Value of the m anagers 18 4. M edia Value of the football team s 20 Specific sections 5. Relationship between m edia value and sport achievem ents of the team s 21 6. M anagem ent of the m edia value, m ajor intangible asset in sports 29 7. The kings are the strikers 36 8. Degree of m edia value concentration 44 9. H ow the m edia value is m easured 48 10. What is ESIrg - Universidad de Navarra 49 11. Contact inform ation 50 ©ESIrg Universidad de Navarra www.unav.es/econom /sport ESIrg 2 Universidad de Navarra Sum m ary of ESIrg report - February 2007. ! Cristiano Ronaldo is the player w ith the greatest increase in m edia value in the last six m onths. Ronaldinho and Real M adrid keep their first position in the ranking, although Rooney and M anchester United, in the second position, reduce the distances. The football player Cristiano Ronaldo (M anchester United) has em erged in the last six m onths as a new m edia superstar, according with the report carried out by ESIrg, research group com m anded by researchers from the Universidad de Navarra and Universitat Internacional de Catalunya. The study (available at www.unav/econom /sport) collects data of 928 players, from Septem ber 2006 to February 2007, and shows that the Portuguese player has m oved forward from the 21st to the 5th post in the ranking. The report also stresses that Ronaldinho keeps his predom inance as the absolute leader of the ranking, with a m edia value 12.3 tim es greater than the average level of the 928 individuals participating in the Cham pions League. Yet, the Barcelona player has lost som e of the distance he had with respect to Rooney (M anchester United), who holds the second position worldwide. The Real M adrid m aintains the status of m edia leader According with the study by the Econom ics, Sports and Intangibles research group (ESIrg) – Universidad de Navarra, there have not been either big changes in the ranking of m edia value by clubs. Real M adrid, with 72.1 points, is the team achieving the greatest level of m edia value in the world, even if the distance with respect to the second one (M anchester United) has been reduced from 19 to 4.5 points. The third position is still hold by FC Barcelona, which reaches up to 65.1 points. The sport achievem ents will eventually determ ine if Real M adrid retains the first position at the end of the season, given that Ronaldo, who accounted for 10 points of m edia value, has now left the club. At the m om ent, Real M adrid, M anchester United, FC Barcelona and Chelsea form a group of giants whose m edia value relevance is far from the other football team s. Degree of concentration of the M edia Value In the sphere of international football, just 1% of the m edia superstars (nam ely, 9 players) are responsible for 11% of the global m edia value associated with the 928 players ©ESIrg Universidad de Navarra www.unav.es/econom /sport ESIrg 3 Universidad de Navarra under consideration. In addition, the superior 10%, gathering the top 93 players, generates 51% of the global m edia value. The degree of concentration is even bigger if we attend solely at the notoriety that players achieve in the m ass m edia. In this case, the top 1% generates 14.3% of the news, whereas the superior 10% produces 58.8% of the total inform ation related to professional football. Sport success as the source of M edia Value In the long run, collective sport success and trophies are the m ajor factor to get enlargem ents of m edia value, which in turn im proves the reputation of the club as a brand and entails increasing revenues. O n the other hand, the ESIrg report highlights that attacker players attract a level of m edia value 5.9 tim es greater than that of the defenders. M oreover, when focusing only on notoriety, this figure grows as high as 6.7. O n the other hand, the im pression given by the press conveys that there are 1.5 defenders, 3 m idfielders and 5.5 attackers playing in each m atch. A novel m ethodology The reports carried out by ESIrg are based on the results obtained by applying the novel m ethodology developed by the leaders of the research group: Francesc Pujol (Universidad de Navarra) and Pedro G arcia-del-Barrio (Universitat Internacional de Catalunya). The calculations of m edia value are com puted through the m easurem ent of both popularity and notoriety levels. The popularity is evaluated according to the num ber of websites that are directly related to the football player and his team , after filtering and correcting som e inaccurate results. The notoriety captures instead the num ber of news quoting the player and his team , published in English, Spanish, G erm an, Italian, Portuguese and French. The full report, together with other studies on m edia value, is freely available at the ESIrg webpage, www.unav.es/econom /sport ©ESIrg Universidad de Navarra www.unav.es/econom /sport ESIrg 4 Universidad de Navarra 1. Introduction: state of football m edia value at the m iddle of the season. As we announced in the ESIrg report on Football m edia value of Septem ber 2006, the second report would be released within six m onths. The tim ing is suitable for exam ining the situation at the m iddle of season 2006/07. At this m om ent, the dom estic leagues have surpassed m ore than half of the com petition while the first rounds of the Cham pions league have already been com pleted. The outcom es shown in the following pages rely on the indexes of popularity and notoriety generated between the beginning of the season, in Septem ber 2006, and the end of January 2007. H ence, they reflect the influence of five m onths of com petition upon the individual and team records of m edia value. Naturally, the results presented here will eventually be confronted with those obtained once the decisive rounds of the com petitions are finished. The scope of this report will presum ably attract the attention of academ ics and other professionals working in the evaluation of intangibles, as well as those involved in m arketing activities and in the m anagem ent of sport brands, etc. Besides, this inform ation m ay be of the greatest interest for a broad array of institutions working in the football industry: clubs, agents, players, sponsors and, notably, fans and m ass m edia related with econom ic and sport issues. The tim ing in which ESIrg reports are released (every six m onths) allows each of the m entioned instances to benefit from suitable inform ation on the evaluation of intangibles in the sport business. The m ethodology developed by ESIrg - Universidad de Navarra, collects data that perm its m easuring the weekly evolution of m edia value for each and every player and team , as well as distinguishing their corresponding rates of popularity and notoriety. In som e cases, whenever the analysis advises doing so, we report the evolution of these figures in m onthly or weekly basis. Yet, such a detailed degree of inform ation is not appropriated for the principal m agnitudes under exam ination, for which the evolution in a 6-m onths period is m ore m eaningful. In effect, by analysing the situation at the m iddle of the season, we can establish relevant com parisons with respect to the outcom es obtained in the previous season, as well as projecting them upon the final results that will be achieved at the end of season 2006/07. In the line of the previous report, and together with the various rankings of m edia value, we will provide further analysis of specific topics. These detailed cases of study illustrate how ESIrg m ethodology provides novel ways to the aim of evaluating intangible assets within the sport industry.
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