Barcelona are braced for losing a whopping 11 percent of their entire brand value following the exit of Lionel Messi.
The Argentine superstar has left the Camp Nou because the club were unable to register a new contract for their player due to their precarious financial position.
Analysis from Brand Finance outlines Messi’s exit is set to knock a staggering €137million from the Catalan club’s value due to the loss of revenue and commercial income streams.
The 34-year-old is leaving the club as a free agent - meaning that no transfer will be paid by his new club - but the true financial cost to the Blaugrana will be significantly higher.
The financial analysis of Barcelona shows that the club’s brand value stands at €1,266million but over 10 percent is set to be wiped from that figure from Messi’s exit.
Those losses are broken down into €77million from the club’s commercial income, along with an expected reduction of €17million for matchday income and on-field results in addition to €43million in sales of shirts and merchandising.
Barcelona are said to currently be the second most valuable club in world football with a brand value of €1,266million - just €10million shy of their El Clasico rivals Real Madrid.
It is anticipated by this move that Barca will now slip to third in global club brand values and they are predicted to be eclipsed by Manchester United, whose current brand value is at €1,130million.
The report highlights that in addition to Messi’s exit having an adverse impact on future sponsorship income, business income and match day income, the loss of the player could also indirectly contribute to a decline in brand equity.
Can Barcelona still challenge for major honours without Lionel Messi? Comment below
It is underlined how Barcelona's brand strength may weaken with declining fan perceptions and a lessening global following of the club at risk of contracting.
Brand Finance’s Managing Director in Spain, Teresa de Lemus, has said: "Messi is synonymous with the Barcelona brand and he has been the club's talisman since he burst onto the scene 15 years ago.
“His presence at the club has undoubtedly allowed the club to attract supporters, season tickets, top players, managers, business deals and winning trophies. His departure can cost the club a lot and cause a painful decline in brand equity.
"There are regulations approved by all the clubs that are mandatory. La Liga's decision to uphold the rules of fair play and strive for a more egalitarian league could increase its competitiveness and boost its long-term appeal, even at the cost of losing a star player like Leo Messi now."
Messi has more than 240 million followers on Instagram, more than double that of the official Barcelona account (99.5million followers).
Sales of the player’s number 10 shirt reportedly generated more than €200 million, of which the club received around 10 to 15 percent (said to be €30million).
However, the true cost of this aspect for the club is likely to be closer to €43million due to Barca’s declining status with Nike.
Do you want an exclusive pre-season preview of YOUR club - both in your inbox and through your letterbox? Head over here to find out more and secure your copy .
