AFootballClubIsSomething ElseThanSport€¦ · A"Football"Club"Is"Something" ElseThanSport 6/6/2012 DusseldorfConsultants& 1 DusseldorfConsultants: • Sarah,Sezgin, SvenjaVitus*

A Football Club Is Something Else Than Sport

6/6/2012

Dusseldorf Consultants

1

Dusseldorf Consultants:

• Sarah, Sezgin, Svenja Vitus

Presen;ng To:

• Mr. Longuepee

Agenda

Mandate

•  Revenue Streams •  Challenges to overcome • Market opportuni;es

Analysis

•  New Assets •  Pricing •  Distribu;on • Marke;ng

Strategy

•  Ac;on Plan •  Risks and Con;ngencies

Recommenda;on

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Situa;on Strategy Implementa;on

Key Issues and Mandate

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Ø Shor7erm: How to fill empty stadium? Ø Longterm: How to become one of the most valuable sports

clubs in Europe?

How to become one of the best Clubs in Europe?

How to boost revenues?

Clubs Brand Equity

Revenues


Recommenda?on

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Raise Investments In Assets, Including New player And Stadium Equipment, While Increasing Marke;ng

Ac;vi;es In Order To Become On Of The Best Football Clubs In Europe


Agenda

Mandate


Analysis


Strategy


Recommenda;on

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Departments in the Business Model of PSG

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Ticke;ng Merchandising Marke;ng Opera;ons and Interna;onal Development

Sponsorship Hospitality and Events

Longuepee

SportFive


Market Opportuni?es and Core Competencies

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Ø Try to a7ract new fans by developing core competencies

• 10 Million inhabitants as poten;al fans • Big soccer community in Europe

Market Opportuni;es

• Good trainer: Carlo Ancello; • Renova;on of the stadium • Good players

Core Competencies


Market Opportuni?es and Core Competencies

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Ø Try to a7ract new fans by developing core competencies

• Hooligans • Weak in tournamens • Empty stadium

Challenges to overcome


AGendance of the stadium

•  Stadium capacity: 47.000 •  AXendance average: 29.317

•  Goal: Increase season ;ckets from 30.000 to 40.000

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Ø Annual growthrate declined by 4 %, so how to boost Pcket sales?


Revenue Stream

•  Commercials •  Ticke;ng income inclusive Match Day Revenues •  Sponsorship and adver;sement deals •  Broadcas;ng •  Profit in transfer markets

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Ø Match Day revenues raise with the number of turnoments played Ø Goal: Win in the stadium and be successful in Europe


Total Costs 2011)2012

• Wages: 78 Million •  Offset of players: -‐10 Million •  Social secruty contribu;on: 44,2 Million •  Excep;onal costs: 10 Million •  Excep;onal Financial: 28 Million

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Ø Cost are all in all 170,2 Million


Broadcas?ng Model

Equally, 50%

League performace, 30%

No. of Broadcasts, 20%

EUR

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Ø Low Margin To Increase Variable Revenues


Commercials

•  Kit •  Shirt •  Back

•  Stadium

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Ø High Margin To Increase Revenues

EUR 45mn


Transfer Funds

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Ø Variable Revenues Ø But Currently Higher Spendings

Purchases

Sales

Net Income


Available Variable Revenue Sources

•  Ticke;ng •  Commercial •  Sponsorship •  Broadcas;ng

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Agenda

Mandate


Analysis


Strategy


Recommenda;on

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A football club includes a whole business cycle which has to be tackled short-‐term in order to build a brand!

Brand

AXendance Revenue

Success in Sport

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Ø  Tackle short-‐term issues first!


Possible op?ons for build a long-‐term brand!

Strategic level •  Club’s brand iden;ty

Opera;onal level •  Assets •  Pricing •  Distribu;on • Marke;ng

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Possible op?ons for build a long-‐term brand!

Strategic level •  Club’s brand iden;ty

Opera;onal level •  Assets •  Pricing •  Distribu;on • Marke;ng

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Possible op?ons to tackle short-‐term issue in order to achieve long-‐term brand!

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Invest in new assets

Pricing of ;ckets

Distribu;on

Marke;ng



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Pricing of ;ckets

Distribu;on

New world-‐class player New equipment within the stadium

Invest in the stadium

Marke;ng



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Pricing of ;ckets

Distribu;on

Lower the prices to aXract more people Higher the prices to signal premium-‐class

Marke;ng



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Pricing of ;ckets

Distribu;on

Parc selling Access to ;ckets

Marke;ng



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Pricing of ;ckets

Distribu;on

Increase spending Build up brand through sponsors and new

aXrac;ve ;cket models

Marke;ng


Important weighted criteria for decision-‐finding

Brand awareness, 50%

Revenue, 30%

Feasibility, 20%

Criteria

Brand awareness Revenue Feasibility

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Criteria DescripPon

Brand awareness Reputa;on, Sophis;cated

Revenue

Tickets, Commercials, Sponsorships, Broadcas;ng

Feasibility Ability to implement


Evalua?on of alterna?ves with weighted criteria!


Pricing lower

Pricing higher DistribuPon MarkePng

Brand awareness

Revenue

Feasibility

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Ø 



Pricing lower

Pricing higher DistribuPon MarkePng

Brand awareness

Revenue

Feasibility

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Ø  InvesPng in new assets including equipment and new players while doing more markePng!


Measures are tackling current issues and are building a brand!

Brand

AXendance Revenue

Success in Sport

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Ø  Fast and detailed implementaPon is needed!

Increasing marke;ng ac;vi;es

Inves;ng in new equipment and players


Agenda

Mandate


Analysis


Strategy


Recommenda;on

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Implementa?on Plan

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Boost Revenues Establish Brand Iden;ty

Increase AXendance & Fill Empty Stadium


Increase The Ticket Sales During The Next 6 Weeks to Fill The Stadium

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Ø Start To Win Long-‐Term Customers With Season-‐Tickets By Increasing MarkePng Efforts

Buying Op;on 2 Times in Season

1. Before Start 2. Mid-‐Season

Season-‐Tickets Buying Op;on

Whole Season

Before every Game

Single-‐Tickets


Introduce An AGrac?ve Ticket Model For The Next 6 Weeks To AGract Fans

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Ø Try To Make A Season Ticket An A7racPve Opportunity for As Many Fans As Possible

Familiy Tickets

Children under the age of 12 go free

2 adults have to come with children

Tickets are connected to name

Group Tickets

Buy 4 Tickets and get 1 Ticket extra

Inform a Friend

Get a 20% Discount For Buying a New

Ticket

Former Customer Receives 10%


Boost Revenues On Match Day Through AGrac?ve Offerings For Fans

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High Price Elas;city – Spend more on Food

Make Tickets More AXrac;ve

Reduce Prices For Food & Drinks


Build An Outstanding Brand Iden?ty

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Ø Become More Successful In The League And Achieve A7endance, Boost Revenues and Establish Strong Brand IdenPty

Hire New Players And Sign Contracts With 3 Top Players During The Next 5 Years

• Establish a 5 Head Team To Screen The Player Market • Evaluate Needed Posi;ons • Conduct Mee;ngs With Player Managers • Sign Contracts • EUR 40mn – 50mn per Player


Establish a Strong Security Concept For The Stadium To Respond To Specter Of Hooligan

•  More Strict Controls at Entrance •  Bag and Body Scans •  Cameras Ø Hire a Security Company Ø 200 People at Hooligans Curves Ø 50 Througout Other Areas

Ø Helpout Family of dead supporter

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Commercials

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EUR 45mn EUR 60mn

LVMH + EUR 3mn

+ EUR 15mn


Risks & Con?ngencies

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Moderate Concern

Moderate Concern

Serious Concern

LiXle Concern

Impact

Probability

No Acceptance in Fan Culture

Dependence On Al-‐Thani

Lack Of Compe;;ve Success

Hooliganism


Ac?on Plan

6 Weeks 5 Years

Brand IdenPty Through MarkePng

Revenues

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New Sponsor 3 New Top Players Security

Concept

AXrac;ve Ticket Models

Reduce Costs For Food And

Drinks


Key Issues and Mandate

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Ø Shor7erm: How to fill empty stadium? Ø Longterm: How to become one of the most valuable sports clubs in Europe?

How to become one of the best Clubs in Europe?

How to boost revenues?

Clubs Brand Equity

Revenues

Thank You!

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Documents

AFootballClubIsSomething ElseThanSport€¦ · A"Football"Club"Is"Something" ElseThanSport 6/6/2012 DusseldorfConsultants& 1 Dusseldorf*Consultants:* • Sarah,*Sezgin, Svenja*Vitus*

AFootballClubIsSomething ElseThanSport€¦ · A"Football"Club"Is"Something" ElseThanSport 6/6/2012 DusseldorfConsultants& 1 DusseldorfConsultants: • Sarah,Sezgin, SvenjaVitus*