Sports clubs that earn millions of brand revenue

Advertising and sponsorship revenues, royalty revenues and revenues from branded products are vital for football clubs. Therefore, football clubs need brand management in order to streamline their cash flows in the future. Well, how much then the big four of Turkey, Galatasaray, Fenerbahce, Besiktas and Trabzonspor, earn from their football trademarks?

Because the four major football clubs in Turkey are publicly traded companies, their financial statements are available for Public and disclosed through Public Disclosure Platform (KAP), hence, we can track trademark revenue and royalty income.

GALATASARAY

In the nine-month period between June 1, 2018 and February 28, 2019, Galatasaray was the team that earned the highest profit in monetary terms from its brand activities. The yellow-reds have earned TL 187,941 in the last fiscal period of nine months from the sum of sponsorships, royalties, advertising revenues and store sales revenues. Thus, Galatasaray increased its earnings by 26% compared to the previous 9 months period by adding another TL 39 million to the total brand revenues.

FENERBAHCE

Fenerbahce took the second place in the brand revenues’ list. In the nine-month period, Fenerbahce team added TL 34.5 million to their revenues by increasing their royalty and advertising and sponsorship revenues by 12% from TL 160 to 180 million.

BESIKTAS

Besiktas took the third place in the earnings from sponsorship, advertisement income, royalty and licensing rights. In the same period, Besiktas increased its profits from TL 99 million to TL 111 million by adding a further TL 12 million to its revenues. In the same period, the licensed product sales revenue of Besiktas decreased from TL 109 million to TL 96 million and experienced a 12% loss.

TRABZONSPOR

Trabzonspor was the fourth team with the highest earnings in terms of advertisement, sponsorship revenues and royalty rights. Trabzonspor increased its revenue from TL 39 million to TL 57 million in a comparative nine-month period. Although the purple-blue team is ranked last among the big four in Turkey, it has achieved a 46% increase in brand revenues and managed to be the most aggressive team in terms of branding and trademark in the nine-month season.

What do the experts say?

Orhan Eriman, a Trademark attorney and the founder of Markiz Patent, which provides trademark consultancy services for the sports clubs and companies that they have registered at the Turkish Patent and Trademark Office and through other patent offices in the world, noted that registered trademarks are among the most important elements that grow and sustain businesses and added:

Considering the monetary value of trademarks, which are among the invisible intangible assets, the importance of registering trademarks both locally and abroad become clearer. Registration means having these assets insured in a sense and it must be carried out without delay. Through Trademark registration, it will be easier to combat counterfeiting, imitations and malicious use.   The trademark registration gives the trademark owner the right to file any lawsuit for material and moral compensation against the third person and companies who use the trademark unfairly or counterfeiting the brand. Trademark registration rights can be transferred to someone else, transferred by inheritance, the right to use can be the subject of license, can be pledged and presented as a guarantee.