Paris Saint- Germaine

Transcription

1 July 2012 Paris Saint- Germaine ALEX BILL BAILEY GLENN KYLE JANSEN MICHAEL PETER

2 The Decision at Hand Strategic Long term profitability Tac.cal Team Development Marke.ng Campaign Opera.onal Player Development Stadium Improvement Global Presence Brand Invigora.on

3 Takeaways Recommenda.on Implementa.on Addi.onal Considera.ons

4 Agenda Compe..ve Landscape Analysis Alterna.ves Recommenda.on Implementa.on Metrics Addi.onal Considera.ons Q & A

5 The QuesIon Before Us How do we increase our immediate profitability?

6 Football s Geographical Popularity Europe Africa Asia Middle East Well Established Large French Immigrant Popula.on Large Popula.on Investors with Financial and Social Aims

7 Leading European Football Clubs Barcelona Real Madrid Manchester City Chelsea Bayern Milan

8 CompeIIve Landscape Football in Western Europe Entertainment Movies T.V. Video Games

9 Cost of ARending a Match Ticket Food & Drink EUR200 EUR50 Movie EUR15 Transporta.on Total EUR30 EUR280 Watch at a Bar EUR50

10 How Our Industry Makes Revenue Commercial Hospitality, Merchandising, Public Subsidy Ticke.ng Drive Desire to AYend Remove Barriers to AYend Sponsorships Strong Corporate Partnerships Broadcas.ng Brand Equity Full- Scale Stadium AYendance Prize Money For Winning Major Tournaments

11 French TV Revenue 20% # of.mes broadcast 30% 25% Current Season 5% Past 5 years 50% Equally Distributed

12 Football Environment Rowdy, but safe Hooligans vs Fans

13 How Top Teams Acquire Players Trade Players Seed Rela.onships with sports agents Recorded as assets Youth leagues through top teams

14 French and European CompeIIons FRENCH France D1 Championship August to May French Cup November to May EUROPEAN UEFA Champions League July to June UEFA Europa League July to May League Cup August to April

15 Technology Use Internet Europe 75% Developing na.ons 30% Limited infrastructure Smartphone Adop.on Europe 70% Developing na.ons 30% 80% of internet use

16 RevisiIng the QuesIon How do we increase our immediate profitability? Reality Check How can we become one of the top 5 football teams in the world?

17 Paris Saint- Germain 2011/2012 Not a contender for UEFA Champions League Team in the League 1

18 New Talent World class players Diego Silva Ezequial Lavezzi Zlatan Ibrahimovic

19 Parc des Princes Heart of Paris Saint- Germain Ongoing renova.ons Due to host the UEFA Euro 2016 Concession due to expire in 2014

20 Hooliganism 2009, 2010: Significant increase of disciplinary measures Done well to reverse reputa.on of racism and violence

21 Current Partners Qatar Na.onal Bank EUR1.5 million for a name in our stadium Poten.al for future sponsorship deals in renova.ons

22 Current Partnerships T- shirt deals Fly Emirates EUR3.5 million Nike EUR6 million T- shirt sales increased 180% last year

23 Perceptual Map Performance Barcelona Real Madrid Manchester Global Fan Base PSG

24 SWOT Analysis Strengths Weaknesses Opportuni.es Threats

25 SWOT Analysis STRENGTHS Storied team Suppor.ve fan base An.- hooliganism crackdown WEAKNESSES Consistent change within the organiza.on Varied ayendance Limited fans outside of France

26 SWOT Analysis OPPORTUNITIES Joining Europe s elite teams Increased brand iden.ty THREATS Poten.al loss of fans with brand iden.ty changes Fair weather fans

27 French TV Fund DistribuIon (In Million EUR) PSG Total Distributed Percentage of League Funds Equal Share % Year Performance % 5 Year Performance % Audience % %

28 PotenIal TV Funds (in Million EUR) PSG If Equal to Pervious Years If Equal to EPL Equal Share Year Performance Year Performance Audience Total Previous Year Total: EUR668 Million EPL Total: EUR765 Million

29 PotenIal TV Funds: Impact % Growth TV Fund Distribu.on 47% Growth Current Previous Year EPL

30 Revenue DistribuIon Revenue EUR (Mil) % Match Day % Other Commercials % Sponsorships % Broadcas.ng % Total % 48% 12% 20% 19% Match Day Other Commercials Sponsorships Broadcas.ng

31 Club Comparison Revenue Costs Comparison PSG Manchester United Match Day Commercials Sponsorship Broadcasting Transfer Market Profit Total Staff Salaries 5 35 Players' Wages Stadium Operating Expenses Player Purchases Other 5 15 Total Net

32 CriIcal Success Factors CSF What do we have? Sustainable CompeKKve Advantage? Profitability Currently not profitable No. Performance Storied team No. Fan Allegiance All.me high ayendance Yes. Marke.ng Strategy Sponsorships No.

33 IntroducIon of AlternaIves Focus only on France Con.nue buying the best players in Europe Long term, comprehensive strategy

34 AlternaIve 1 Focus only on France PROS Concentrated customer base Familiar CONS Small, limited market Limited talent pool

35 AlternaIve 2 ConInue buying the best players in Europe PROS Great players Great press CONS Very expensive Limited loyalty Not sustainable on its own

36 AlternaIve 3 Comprehensive strategy PROS Mul. faceted approach Long term growth prospects Sustainable CONS Takes.me Expensive

37 EvaluaIon of AlternaIves CriKcal Success Factors Focus only on France ConKnue buying the best players in Europe Comprehensive Strategy Profitability Performance Fan Allegiance Marke.ng Strategy

38 FoundaIon Plan Overview Founda.on Plan Marke.ng Plan Stadium Renova.ons Team Development

39 FoundaIon Plan Timeline Phase 1: 1-2 Months Phase 2: 2 Months 2 Years Phase 3: Years 2-5

40 MarkeIng Phase 1 Source poten.al global partnerships for sponsorship in new renova.ons Begin talks with Air Emirates and Nike to renew T- shirt deals Source IT companies to develop a new PSG mobile app Phase 1 Phase 2 Phase 3

41 MarkeIng Phase 1 Source 10 ci.es for volunteering and dona.on Safe for players: conflict, disease Open to foreign aid Limited or no exis.ng team allegiance Rela.onship with France Start to source different ci.es abroad for exhibi.on matches Large popula.on centers Developing, popular football programs Phase 1 Phase 2 Phase 3

42 RenovaIons Contact global companies for poten.al sponsorship opportuni.es Explore naming rights opportuni.es Green ini.a.ves in the construc.on of renova.ons Locate new areas of the stadium that can be more family friendly Life.me sea.ng Locate seats in new add- ons to stadium Phase 1 Phase 2 Phase 3

43 Team Development Develop youth club Player incen.ve system Contract agents to find talent primarily in France Offer merchandise op.ons Phase 1 Phase 2 Phase 3

44 MarkeIng Phase 2 Contract sponsorship deals in new addi.ons to stadium Launch the PSG app Adver.sing campaign on.ckets, stadium banners, commercials, etc. Volunteer and donate in located ci.es Develop youth leagues Donate merchandise Set up wireless hotspots Play exhibi.on matches Casablanca, Cairo, Dubai Life.me sea.ng Sell to buyers; EUR5000 Phase 1 Phase 2 Phase 3

45 RenovaIons Begin construc.on of renova.ons Life.me sea.ng Family- friendly areas Green ini.a.ves Phase 1 Phase 2 Phase 3

46 Team Development Contend for UEFA championship Con.nued investment in top players across Europe and beyond Phase 1 Phase 2 Phase 3

47 MarkeIng Phase 3 Con.nue playing exhibi.on matches abroad Extend loca.ons to Asia and Sub- Saharan Con.nue seeking new global partners for sponsorship Focus more resources on promo.ng the French League in general Phase 1 Phase 2 Phase 3

48 RenovaIons Complete renova.ons Adver.se the sustainability of addi.ons Con.nue to sell life.me sea.ng Phase 1 Phase 2 Phase 3

49 Team Development Focus more on sourcing talent globally Retain current top performers Africa, Asia, South America Compe..ve pay Merchandising opportuni.es Phase 1 Phase 2 Phase 3

50 Budget (in EUR Millions) Phase 1 Phase 2 Phase 3 IT Investment 2 Stadium Renova.ons Contracted Agents Marke.ng Total

51 Metrics of Success Increase ayendance by 20% in 5 years Increase sponsors Double in 2 years Triple in 5 years Top 5 profitable football clubs in the world in 5 years

52 Risks and MiIgaIons Risk Likelihood Mi.ga.on Other teams source the same countries 30% Sourcing criteria & Team effort Other teams try to buy our players 80% Brand loyalty

53 AddiIonal ConsideraIons How will the success of PSG influence fan allegiance? Could we partner with video game franchises? FIFA soccer games

54 QuesIons and Answers

55 Appendix The Decision at Hand Takeaways Agenda The Ques.on Before Us Football s Geographical Popularity Leading European Football Clubs Compe..ve Landscape Cost of AYending a Match How Our Industry Makes Revenue French TV Revenue Football Environment French and European Compe..ons Technology Use Revisi.ng the Ques.on Paris Saint- Germain New Talent Parc des Princes Hooliganism Current Partners Current Partnerships Perceptual Map SWOT Analysis French TV Fund Distribu.on Poten.al TV Funds: Impact Revenue Distribu.on Club Comparison Cri.cal Success Factors Introduc.on of Alterna.ves Alterna.ve 1 Focus only on France Alterna.ve 2 Con.nue buying the best players in Europe Alterna.ve 3 Comprehensive strategy Evalua.on of Alterna.ves Founda.on Plan Overview Founda.on Plan Timeline Renova.ons Team Development Marke.ng Phase 2 Renova.ons Team Development Marke.ng Phase 3 Renova.ons Team Development Budget Metrics of Success Risks and Mi.ga.ons Addi.onal Considera.ons How Top Teams Acquire Players Poten.al TV Funds Marke.ng Phase 1

56 ConIngency Plan Family Event Child friendly sec.on Discounts for children Source from underprivileged French towns Repeat sourcing in Phase 1 Global partnerships IT companies Talent

57 What If Our Team Performance Is Poor? Branding The Most Fun Team The Underdog Building

58 AnIcipated Impact of RecommendaIon for Phase 1 Impact of RecommendaKon Revenue AYendance increase 20% 4.9 Commercials 20.3 Sponsorship x Broadcas.ng 52.0 Transfer Market Profit 20.0 Total 119.4