Paris Saint- Germain. Becoming the best, Staying on top. PBS Consul+ng Team. Pedro C., Alana B., Ana M., Pedro S.

Transcription

1 Paris Saint- Germain Becoming the best, Staying on top PBS Consul+ng Team Pedro C., Alana B., Ana M., Pedro S.

2 Agenda 1 Key Issues 2 Analysis 3 Alterna+ves and Recommenda+on 4 Financials 5 Risks 6 Implementa+on Plan

3 Dreaming Big, Aiming High The Problem: How can PSG Be one of the best in Europe? Your team needs to achieve be6er performance AND sell more Ackets right away.

4 Key Issues Team Performance Revenue Club business model Increase fan base Short term Long term Tickets Sponsorships and Merchandise Broadcast Rights CompeAAon

5 ANALYSIS

6 Paris Saint- Germain One of the most pres+gious ouyits in France and Europe Shareholder Qatar Sports Investment (QSI)

7 The football industry moves a lot of money Total source of funding in Europe valued EUR12b Biggest Clubs generate turnovers of more than EUR400 M Teams Turnover (EUR M) Real Madrid 479 Barcelona 450 French Club Average 52

8 You have 3 types of consumers 1) Base Season +ckets 2) Match- day E.g., Tourists 3) Hospitality suite Companies

9 This is how your funds flow Revenues Match- day +ckets Broadcas+ng In- stadium media Merchandising Sponsorships Adver+sing deals Transfers Costs Staff salaries Players` wages Stadium opera+ng expenses

10 1) AKendance Average Ahendance French Clubs season 2010/ Average Ahendance persons per season Marseille Lyon Lens PSG /09 09/10 10/11 11/12 Ahedance Stadium Capacity Series 1

11 2) Match- day revenue Team Match day (EUR M) Rev. per Fan (EUR) Marseille Lyon Lens PSG Although your match day revenues are on the top 5 in French league.

12 it`s way behind Europe`s finest club Team Match day (EUR M) Real Madrid Man United Arsenal Barcelona 97.8 PSG 18.1

13 3) BroadcasRng Revenues Lined to 2 factors Club brand equity Full- scale stadium ahendance 2 Sources DomesAc: - Distribu+on model is rela+vely equitable - 30% based on league performance UEFA: - Distributed EUR754 M (2010/2011) - PSG was not a contender that year

14 4) Commercials Legacy Co\Established Brand Support/Popularity spread across countries Keys to succeed in driving commercial revenues

15 5) Professional Players You are bemng in star players! Transfer important source of revenue PSG`s net spend: EUR21 M EUR96 M (2012)

16 RECOMMENDATION

17 Strategies to tackle the key issues Team Performance Revenue Club business model Increase fan base Short term Long term Tickets Sponsorships Merchandise Broadcast Rights

18 Strategy 1: Be one of the best performing teams in Europe Team Performance Revenue Club business model Increase fan base Short term Long term Tickets Sponsorships and Merchandise Broadcast Rights CompeAAon

19 Strategy 1: Be one of the best performing teams in Europe PSG Business Model Buy Low, Sell High Develop young players Ex: FC Porto, Dortmund Bring in Big Stars Buy mul+ple stars like Ronaldo and Messi Ex: Real Madrid Mixed Approach Some big stars, but s+ll focused on developing Ex: Manchester City

20 Strategy 1: Be one of the best performing teams in Europe PSG Business Model Buy Low, Sell High Develop young players Ex: FC Porto, Dortmund Bring in Big Stars Buy mul+ple stars like Ronaldo and Messi Ex: Real Madrid Mixed Approach Some big stars, but s+ll focused on developing Ex: Manchester City

21 Strategy 1: Be one of the best performing teams in Europe PSG Business Model Buy Low, Sell High Develop young players Ex: FC Porto, Dortmund Bring in Big Stars Buy mul+ple stars like Ronaldo and Messi Ex: Real Madrid Mixed Approach Some big stars, but s+ll focused on developing Ex: Manchester City

22 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Create training centre - Mul+ple pitches, accommoda+on, etc Form a scou+ng team for young talent world wide - Target Brazil, Argen+na, Portugal, Germany, Africa (Cote d Ivoire and Ghana) Partnerships with teams in lower leagues with reputa+ons for training young talent (ex: Santos, Boca Juniors, Spor+ng)

23 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Create training centre - Mul+ple pitches, accommoda+on, etc Form a scou+ng team for young talent world wide - Target Brazil, Argen+na, Portugal, Germany, Africa (Cote d Ivoire and Ghana) Partnerships with teams in lower leagues with reputa+ons for training young talent (ex: Santos, Boca Juniors, Spor+ng)

24 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Create training centre - Mul+ple pitches, accommoda+on, etc Form a scou+ng team for young talent world wide - Target Brazil, Argen+na, Portugal, Germany, Africa (Cote d Ivoire and Ghana) Partnerships with teams in lower leagues with reputa+ons for training young talent (ex: Santos, Boca Juniors, Spor+ng)

25 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Keep or ahain 4-5 players with superior performance and star status - Buy maximum 2 star players per year Bet on young talent Invest in high- performance training centre using high- tech analys+cs, medical experts, etc Form a team to ensure players stay focused (take care of housing, children s school, supports)

26 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Keep or ahain 4-5 players with superior performance and star status - Buy maximum 2 star players per year Bet on young talent and new coach (Kroos from BVD) Invest in high- performance training centre using high- tech analys+cs, medical experts, etc Form a team to ensure players stay focused (take care of housing, children s school, supports)

27 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Keep or ahain 4-5 players with superior performance and star status - Buy maximum 2 star players per year Bet on young talent and new coach (Kroos from BVD) Invest in high- performance training centre using high- tech analys+cs, medical experts, etc Form a team to ensure players stay focused (take care of housing, children s school, supports)

28 Strategy 1: New Team Management Structure Player Development (long term) Football Team (short term) Keep or ahain 4-5 players with superior performance and star status - Buy maximum 2 star players per year Bet on young talent and new coach (Kroos from BVD) Invest in high- performance training centre using high- tech analys+cs, medical experts, etc Form a team to ensure players stay focused (take care of housing, children s school, supports)

29 Strategy 2: Increase revenues through mulrple streams Team Performance Revenue Club business model Increase fan base Short term Long term Tickets Sponsorships Merchandise Broadcast Rights

30 Strategy 2: Increase revenues through mulrple streams TickeAng Merchandise and Sponsorship CompeAAon and Broadcast Rights

31 Strategy 2: Increase revenues through mulrple streams TickeAng Merchandise and Sponsorship Season Tickets: - Loyalty program for fans (discounts elsewhere for season +cket holders (Paris gas sta+ons, restaurants, etc ) - Bar partnerships (group buying, bars bring bus loads of fans and can sell their +ckets) - Work with travel companies to incorporate +ckets into their bookings Match Day Tickets: - Adopt extensive data analy+cs program (more price points, real +me) - Target high- income tourists in luxury shopping districts via hotels, bars, and ads through Trip Advisor type apps Hospitality Suites: - Target large mul+na+onal corpora+ons with headquarters in Paris - Focus on Asian and Arab companies with many out of town clients CompeAAon and Broadcast Rights

32 Strategy 2: Increase revenues through mulrple streams TickeAng Merchandise and Sponsorship CompeAAon and Broadcast Rights Target Asian and Arab na+ons for merchandise sales - Using star power of big players - Hold pre- season tours through foreign countries - China, Qatar, Japan, Malaysia, Singapore, Emirates, Saudi Arabia Go ater a big sponsor for stadium naming and jerseys - Two separate big name sponsors - Stadium examples: Fly Emirates, Ethiad (Arabic companies) - Jersey examples: Nike, Adidas Fly Emirates addi+onal sponsorship - Airline safety videos - In- flight reading and scores

33 Strategy 2: Increase revenues through mulrple streams TickeAng Merchandise and Sponsorship CompeAAon and Broadcast Rights Compe++on winnings and television broadcast rights: - Extremely important for revenue - Both depend on team performance completely - Very large untapped earnings from UEFA television rights that PSG is currently not earning due to poor performance

34 FINANCIALS

35 Financial Analysis AssumpRons 1. Renova+on of the stadium will increase total capacity to 62,000 seats 2. Occupa+on will increase to 90% in 5 years 3. Expenditures will be decreased to 120 EUR Mil (2012 level)

36 New Investments will represent 176 EUR mil in 5 years Stadium Training Center (development) High performance training center Talents iden+fica+on TOTAL (EUR Mil)

37 Forecast of Stadium OccupaRon and Revenues Stadium Occupa+on 62% 67% 72% 77% 83% 90% Commercials (EUR Mil) Ticke+ng (EUR Mil) Revenues Sponsorship (EUR Mil) Broadcas+ng (EUR Mil) Total revenues (EUR Mil)

38 Forecast of Stadium OccupaRon and Revenues Revenues increase to 106 EUR M in 2018 Stadium occupancy increase to in 2018

39 RISKS & PLAN

40 Risks & MiRgaRon Prob. Impact Team might not win Enough Revenues with stars hiring Time for develop young players Prob. Impact Kroos may not accept We iden+fy the type of coach your team needs, there is more op+ons Prob. Loyalty program partners may not partner with us PSG huge brand in France, moves passion consumers Impact

41 ImplementaRon Plan

42 Summary 1. Increase team performance - Fewer stars, more development 2. Increase revenue - Ticket sales - Merchandise and sponsorship - Earnings from performance

43 Thank You