APC Brand Evaluator

The APC Brand Evaluator ® Methodology

The APC Brand Evaluator® evaluates and measures the monetary value of the Sports Celebrity Image.  The Sports Celebrity Image is an intangible asset with commercial value.  The commercial value lies within the athlete: it is the athlete’s own, personal goodwill.  Personal goodwill in identity is the force that attracts one to a famous individual so a person has a commercial value, given their fame.

As an intangible asset, the sports celebrity image manifests itself by its economic properties, by granting rights and privileges to its owner and by generating income for its owner.  The valuation technique utilized to come up with the value of the sports celebrity image is an adapted version of the Income Approach which predicts expected future earnings from commercializing the sports image and calculates their net present value.  This methodology is widely accepted by global auditors and tax authorities in many countries and it is sufficiently reliable for use in financial reporting.

In using this methodology, we identify current and predict future streams of revenue from commercializing the image and discount them into the present using appropriate risk rates.  It should be noted that the Sports Celebrity Image Valuation is substantially affected by the abilities and the expected performance of the player and that such valuation is carried out according to the expected future utilization of the player’s image rights.  Such evaluation is performed on a case by case basis according to the particular corresponding factors and circumstances of each player.  Any subjective element in the evaluation procedure is kept to an absolute minimum, at the very least.  The process of evaluation is thus a holistic and ‘sui generis’ one.

WHY WE NEED TO HAVE A VALUE OF THE SPORTS CELEBRITY IMAGE

The financial valuation of the Sports Celebrity Image is a relatively new development.  Measuring the Sports Celebrity Image value provides players, clubs and sports agents with a framework for strategic management when it comes to licensing, business alliances, joint ventures involving a player’s image rights or other applications.

Specifically, the Sports Celebrity Image valuation can be used in the following ways:

To provide a value for the sale or licensing of the athletes’ image rights

To use the celebrity image asset as collateral for obtaining a loan or other types of financing

To contribute part or all of the athlete’s image rights as capital in a business venture

To help athletes decide which sports franchise to align themselves with in order to maximize their brand value and earnings

To aid sports clubs in coming up with a basis for the monetary value of image rights exploitation contracts with their players

To provide corporations with quantifiable data that will help them in choosing the right celebrity to align with their brand

To provide a basis for valuing celebrity estates and trusts

To calculate damages for unauthorized use of the athlete’s image

To aid athletes and other celebrities in their negotiations with product/service brands and provide an accurate measure of their personal brand during endorsement contract negotiations. It can also provide celebrity athletes with a process which allows them to weigh different endorsement opportunities based on the likely effects on their brand values

To provide athletes with an insurable value for their Sports Celebrity Image Asset. This is fairly new even to insurance companies which so far insure specific endorsement contracts and not the sports celebrity image itself.  A brief discussion with insurance companies has revealed that the main reason they have not insured the celebrity image so far is because of the lack of a concrete value attached to the image.  A valuation method acceptable to the insurance industry may give sports celebrities the opportunity to take an insurance policy to protect the value of their image.

And last but very importantly, it can help athletes to further develop and commercialize their celebrity image by providing information on the components and variants of their celebrity image value. It is very important to know what the ingredients of your value are because you can utilize them to your best benefit and actually built your celebrity image for maximum commercialization!