The Future of Paris Saint Germain

Transcription

1 Consul'ng - Town roup The Future of Paris Saint ermain Mee'ng with Mr. Tamim bin Hamad Al- Thani January 6, 2015 TU aiserslautern Nicole Muskalla Andreas Seegmueller Philip Tent- Beaumont Marius Vennemann 1

2 oal How can PS increase sales in short term with a sustainable long- term success? 2

3 Agenda Current Situa?on Analysis Alterna?ves Implementa?on Conclusion 3

4 ey Issues Parc des Princes Nega've profitability Low Brand awareness How can PS increase sales in short term with a sustainable long- term success? Low match day revenues No interna'onal success Violence and racism Nega've transfer balance 4

5 Objec,ves Join European soccer elite Increase brand awareness Increase match day income Find high quality partners 5

6 Business Model Pres?gious Football club One of top three clubs Affordable?ckets Paris Saint- ermain Experience Soundbox Possibility to Iden?fy 6

7 Revenue Streams Profits from transfer market Adver?sing Deals Sponsorship Paris Saint- ermain Experience Broadcas?ng à Broad porsolio of products In- stadium media Merchan- dising 7

8 Revenue Streams Revenue Distribu'on 34% Commercials 24% 22% 20% Ticke'ng Income Sponsorship Broadcas'ng Paris Saint- ermain Revenue on match- day in Experience 25.6 million Marseille Lyonnais Lens PS à High poten?al increase?cket sales Revenue Development Seats 38% 62% AYended UnaYended 8

9 Customer Segmenta,on Reason of visit Contact to fans from other teams Business Purpose Interest in game Leisure Time low high Willingness to pay à Problem: Segmenta?on includes Hooligans 9

10 Poten,al Customer roups Business Customers: - willingness to pay extra for extra service - benefit the reputa?on of Paris Saint- ermain - want a football club with pres?gious image Families: - interested in cheap?ckets - no nega?ve effect on image, buy merchandize - poten?al to become regular visitors, when hooligan problem is solved à Poten?al new target groups 10

11 Revenue Streams - - Pres'gious Reputa'on High number of Revenue Streams - Experience S W Dependence on performance of team Nega?ve profitablility Ineffec've youth work - Increase 'cket sales - 10 mil inhabitants in Paris - No compe?tors - UEFA 2016 O T Hooligans Decreasing number of visitors Rising popularity of other sports 11

12 Alterna,ves Develop successful soccer team Sustainable growth Use current circumstances and foreign talents to grow PS to an European elite soccer team Con?nue expansion plan for Parc des Princes Build up brand through marke?ng campaings Sustainable diversifica?on 12

13 Alterna,ves Rely on foreign talent Sustainable growth Increase safety Improve image due to racism and violence Sourcing local talents Improve infrastructure for fans Con?nue expansion plan for Parc des Princes Sustainable diversifica?on 13

14 Alterna,ves Rely on foreign talent Sustainable growth Increase safety Improve image due to racism and violence Sourcing local talents Improve infrastructure for fans Con?nue expansion plan for Parc des Princes Diversify PS with new sports ac'vi'es Sustainable diversifica?on 14

15 Alterna,ves Join European soccer elite Increase brand awareness Increase match day income Find high quality partners Rely on foreign talent O Sustainable growth + O O O Sustainable diversifica'on

16 Alterna,ves Join European soccer elite Increase brand awareness Increase match day income Find high quality partners Rank Rely on foreign talent O Sustainable growth + O O O 3 Sustainable diversifica'on

17 Implementa,on < 1 years 1-2 years > 2 years Image Infrastructure Violence Social Aid Ticket App P & R Club Channel PS ecole de futbol VIP lounge Basketball Paris Baskets 17

18 Image Violence Hooligans cannot be eliminated Analyze games with most poten?al for violence collisions Nonalcoholic beverages for selected games Increased police presence for games Cage sea?ng block for ultras and hooligans Increase safety for families and other viewers 18

19 Customer Segmenta,on Reason of visit Reason of visit Contact to fans from other teams Business Purpose Interest in game Leisure Time low Willingness to pay high low Willingness to pay high 19

20 Image Social Aid Polish image If stadium filled more then e.g. 75% donate 1Euro per Ticket to NPO Posters to make aware of this campaign 20

21 Implementa,on < 1 years 1-2 years > 2 years Image Infrastructure Violence Social Aid Ticket App P & R Club Channel PS ecole de futbol VIP lounge Basketball Paris Baskets 21

22 Infrastructure Ticket App Develop app for purchase of?ckets Possibility for season card holders to resell their seat for specific games During development operate re- sales from club store with limited number of resales Divide price 50:50 between PS and SCH Increase number of season cards 22

23 Infrastructure Park and Ride Finding parking space is difficult before games Use parking lots in suburbs of Paris Hire busses to transport fans to the stadium 23

24 Infrastructure Club Channel Establish Club channel Air summaries of games, documentaries, interviews First only via online streaming, depending on success find tv channel 24

25 Infrastructure PS ecole de baskets Find local talent Once per year hold na?onal academy for a month Once per year hold interna?onal academy for two weeks 25

26 Infrastructure VIP Lounge Rebuilding of stadium currently taking place Expand plans for the VIP lounge 26

27 Implementa,on < 1 years 1-2 years > 2 years Image Infrastructure Violence Social Aid Ticket App P & R Club Channel PS ecole de futbol VIP lounge Basketball Paris Baskets 27

28 Basketball Paris Baskets Create new streams of revenue Acquire second league basketball team Paris Baskets Build them up over the next years 28

29 Implementa,on < 1 years 1-2 years > 2 years Image Infrastructure Violence Social Aid Ticket App P & R Club Channel PS ecole de futbol VIP lounge Basketball Paris Baskets 29

30 Cost Revenue Development Assump'ons: Revenue increase: 20% per year Cost increase: 5% per year Revenue Costs Net income à In 2015 highly posi?ve net income and Top 10 club interna?onally in terms of revenue 30

31 Project Analysis WACC 15% Short Term Project Profit analysis NPV Analysis in Euro revenues addi'onal season 'cket 2000 addi'onal 'ckets per game with 25euros 2,500, , ,000, ,000, ,000,000.0 sum of revenues 3,350, ,000, ,000, ,000,000.0 costs image campaign 850, ,000.0 'cket app 1,300, , , ,000.0 Profit 2,050, , , ,000.0 Present value 1,782, , , ,814.9 NET PRESENT Value 2,686,

32 Risk and Con,ngencies 1. Failed na'onal/interna'onal success à push more into transfers and search for youth talents high 2. No partnership for talent program à con?nue to invest money to build program 1 3. Marke'ng campaign lacks results à increase financial expenditures Impact No increase of capacity u'liza'on à price reduc?on and marke?ng campaigns 5. Reselling op'on of 'ckets not used à evaluate and change pricing system low 5 2 low Probability high à Capacity u?liza?on as most crucial factor and target 32

33 Conclusion Short- term: Increase viewers Improve brand awareness Use foreign talent Long- term: Increase talent Basketball team 33

34 Consul'ng - Town roup Thank you for your ajen,on! Mee'ng with Mr. Tamim bin Hamad Al- Thani January 6, 2015 TU aiserslautern Nicole Muskalla Andreas Seegmueller Philip Tent- Beaumont Marius Vennemann 34