PARIS SAINT GERMAIN BEST OF FRANCE, BEST OF WORLD. Alireza Almaleki Faith Kaplan Amandeep Sekhon Brian Chipman

Transcription

1 PARIS SAINT GERMAIN BEST OF FRANCE, BEST OF WORLD Alireza Almaleki Faith Kaplan Amandeep Sekhon Brian Chipman

2 Agenda Clarify Analysis Recommendation Implementation Mitigating Risks

3 Dream Bigger Goals 1. Re-establish the Winning Tradition at Paris St Germain 2. Boost Revenue Quickly 3. Quality Over Quantity For Official Partners

4 Key Issues How to make PSG one of the best teams in Europe How increase stadium attendance What does PSG mean to fans? Recommendation Attract Best French and International Players Stadium Revenue and Fan Experience Strong Sophisticated Brand

5 Strengths Best Team in France Stadium Strong Financial Backing Challenges Game Attendance Team Performance Revenue PSG Threats Other Teams Hooliganism Cost of Attendance Opportunities Creating Unique Fan Experience Long-Term Sponsorship Contracts Weak French League = Champions League

6 Criteria for Success Improve Revenue Streams Build Brand Identity Create a Winning Organization

7 Alternatives 1. Develop Home-Grown Talent. 2. Lower the Cost of Fan Experience. 3. Aggressive Transformation

8 Talent Advantages Disadvantages Time Intensive Sustainable Long-Term Income Flow Long Term Payoff Not a Core Competency

9 Price Advantages Disadvantages Difficult to Maximize Revenue Fill Stadium Brand Dilution Forgiving Fans Reduced Commercial Appeal

10 Aggressive Transformation Advantages Disadvantages Immediate Returns Fan Experience Builds Brand Cost Expectations

11 Comparison Lower Ticket Price Develop Home- Grown Talent Aggressive Transformation Increase Revenue Yes No Yes Build Brand Identity No Yes Yes Build a Winning Organization No No Yes

12 Key Issues How to make PSG one of the best teams in Europe How increase stadium attendance What does PSG mean to fans? Recommendation Attract Best French and International Players Stadium Revenue and Fan Experience Strong Sophisticated Brand

13 Implementation Offense Acquiring Top French and International Players Midfield Stadium and Fan Experience Defense Strategic Brand Partnerships

14 Offense Acquire Players Strong Financial Backing Allows Acquisition of Key Players Focus on French Players Ensure Weekly Wage is Equal to or Greater than Top European Clubs Total Wages = 200M

15 Midfield Stadium & Fan Experience Focus on Catering Fan Experience to Different Demographics Ensure 80 is Implemented With Stakeholder Input Apply Best Practices to Stadium Services Develop and Market Ticket Strategy to Maximize Revenue

16 Defense Strategic Brand Partnerships Immediately Focus on Arab Investments in Naming Rights Europe s Finest Sport Entertainment Experience Successful Team = Increased Media Coverage Co-Branding Opportunities

17 Time Line Transfers Stadium Customer Services Marketing Wages 2011 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 100M 75M 50M 26M 26M 24M 30M 30M 30M 20M 40M 50M 150M 200M 235M

18 Financial Projections IN EUR Ticket revenue Commercials Sponsorship Broadcasting Total Revenue Expenses Transfers NA Stadium Fan Experience Marketing N.Income NPV $181,382, WACC 10%

19 Revenue and Income 800 Projections Revenue N.Income

20 Cost Breakdown Marketing 110 Transfers 135 Fan Experience 90 Stadium 80

21 Risks Players Leaving Attractive Wages Winning Club Low Ticket Sales Improve Fan Experience Sign French Nationals to Play Incongruent Sponsors Strategic Selection Focus on Brand Values

22 Final Score Challenge PSG is in Europe s Top 5 Full Stadium Every Game Fan Loyalty Solution Acquire Best Players, with French Focus Best Fan Experience Strong Sophisticated Brand

23 Ticketing Tiered Pricing A,B and C level games Small packages Allow ticket sharing Stadium Dynamic Organize stadium into zones Allow luxury boxes to have priority Season Tickets Grow customer service base Improve ticket holder value via the sponsorships

24 Marketing Increase Brand Awareness Aggressive Campaign Highlight Dream Bigger Integrate Players Allow world class players to be face of campaign Connect to the community Cross Promotion Players sponsor products Penetrate market

25 Media Strategy Open Access Allow media greater access to team Work with media not against it Imbed Media Use select media partner to connect fans to players Control the message Social Media Interact with fans Create own media

26 Sponsorship Arab Investment Use connection to Al-Jezeera to attract sponsorship Luxury Corporate Partners Court Luxury Partners Offer Exclusive Deals and Access to Players Naming Right Offer Stadium Naming Rights Naming Right on Players Apparel and Jersey