Dreaming Bigger. Paris Saint-Germain. Paris, July Prem Eruvbetine, Dexter Lam, William Katz & Alex Eakins University of Calgary

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1 Dreaming Bigger Paris Saint-Germain Paris, July 2012 Prem Eruvbetine, Dexter Lam, William Katz & Alex Eakins University of Calgary

2 Issue 2 Revenue is based on number of people watching Tickets Broadcasting People buying branded merchandise PSG is a one person show in a one show league

3 Recommendation 3 Build up Ligue 1 Make the game more broadcastable Performance (Team) More Games are worth watching

4 Subsidiary Issue 4 Exciting games require more than one good team Other Ligue 1 teams need to be better Revenue mix Broadcasting (35%) room to grow with global reach Ticketing (20%) limited by stadium Commercial (47%) will grow with brand awareness Team performance High turmoil impacts performance Use Qatari / Arab connections to encourage foreign investment in other Ligue 1 teams Having more games that are exciting to watch will boost all sources of revenue Now have good assets Have persistence to make the team work

5 How did we get here? Alex

6 Alternatives 6 1. Build Ligue 1 2. Invest in team development 3. Invest in the stadium The big picture cannot be forgotten

7 Criteria 7 Commercial -sponsorship -hospitality -merchandising Ticketing Broadcasting These are the most important to future

8 Analysis 8 Commercial Ticketing Broadcast TOTAL 1. Ligue 1 Y Y Y 3 2. Team development N N N 0 3. Stadium N Y N 1 Build Ligue 1 in the long term will improve PSG

9 Short Term Implementation 9 Performance Coaches Strategic acquisitions Experience Worth watching Social media & contesting Key to improving the team AND ligue 1

10 How do we get that full stadium? 10 Encouraging season ticket holders Player meet and greets Contesting- Player for a day raffles Incentives to purchase part of the team All improves experience of game

11 What is the plan? Prem

12 How to strengthen Ligue 1 12 Improve quality of Ligue 1 games Improve quality of Ligue 1 teams Collaborate with lower leagues on French player development More access to better talent Use Arab connections to encourage foreign investment Shake up other teams the same way as PSG

13 Financial Projections strong growth across all revenue categories

14 Gross Profit Projections strengthening the Ligue helps the bottom line too

15 Income (cash) Payback of just 4 years!

16 Income Statement (Projected) Commercial Fly Emirates Nike Other Mechandizing Hospitality Other Sponsorship Ticketing Income (tickets, ground media, merchasdise stalls, parking) Attendance Broadcasting French TV Broadcstng Revenues (~17%) Total Revenue Expenses 70% 70% 70% 70% 70% 70% 70% 70% Wages Gross Profit Player Spend Community Investment Other Spend Cash Flow (71.87)

17 Risks & Mitigations Will

18 Risks & Mitigations Risks Impact Likelihood Mitigation Price of Oil declining Loss of Football advantage High High Broadcasting Reduce over priced player acquisitions Run as business not fantasy football Low High You are selling competition Build up Ligue 1 Strategic player acquisition Retention of coaches Bidding War Medium High Stop of high priced player acquisition Stop devaluating current talent Work with Foreign investment connections

19 What not to do! 19 High priced player acquisition u This is a business u Increased costs u Competitive response u Starts bidding war

20 What not to do! 20 Make tickets difficult to access u Currently not filling the stadium u Creating demand will come on the field

21 What not to do! Invest in stadium u Let the city do the investing u Lease is up u Mayor wants 2016

22 Outside the box 22 u In-house gambling u Huge revenue potential u Generates fans u Look into public procedures and policies- lobby if necessary u Leverage relationship with city

23 You asked us: 23 How do you increase season ticket sales? How to increase revenue? Short term wins with long term strategy

24 Recommendation 24 Build up Ligue 1 Make the game more broadcastable Performance (Team) More Games are worth watching