Paris Saint-Germain. QUT Real World Consul1ng

Transcription

1 Paris Saint-Germain QUT Real World Consul1ng

2 Agenda Define Issues & Problem Statement Measurements of Success Analyse External & Internal Customer & Resources Op>ons & Alterna>ves Recommend Solu>on Opera>onal Hooks Implement Strategy Timetable Risks Finances

3 Issues & Problem Lack of revenue Limited match anendance How to broaden your reach & appeal to expand your fan base, driving profits Minimal capitaliza>on of current op>ons Lack of fan engagement Not enough posi>ve brand equity

4 Impact Expand Fan Base More Interest in Team Increase Revenue High Profile Players

5 Measurements of Success FAN BASE 10 million interna>onal MATCH ATTENDANCE 85% Stadium Advance Sale >ckets FAN ENGAGEMENT 4 million unique visitors PROFIT EUR 50 million annual

6 Industry Analysis SUPPLIER POWER - Players ability to switch teams HIGH SUBSTITUTES - Many teams - Other codes MEDIUM INDUSTRY RIVALRY - Compe>>ve sport - Many teams HIGH BUYER POWER - Low switching costs - Many teams HIGH NEW ENTRANTS THREAT - High involved revenue LOW

7 Internal Analysis Value Proposition: Proven history of winning matches with significant uncontested catchment Resources: Stadium World class players Football team Organisational Structure: Owner & Management Team Coaching Team Support Staff Players Customers: Changing from hooligans to mainstream Parisians Low-middle income class Primarily males

8 Business Analysis STRENGTHS World class quality players Strong reputa>on in Paris Extensive history Fresh leadership WEAKNESSES Recent decline in club membership Low match day revenue Lack of fan engagement Limited PR exposure OPPORTUNITIES Global network Current interna>onal links Online engagement Increase number of matches BeNer use of resources THREATS Low player switching costs Compe>>ve regional teams Other teams with strong brands

9 Analysis Summary Con>nue Inves>ng in quality players Fresh leadership with high ambi>ons Take Advantage Interna>onal links Strong resource base (players & stadium) Be Aware Well resourced compe>>on Media strategy

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11 Alternatives Status Quo Sell Merge Engage Seek Investment A:rac<veness Strategic Fit Low Low Mid High Mid KPIs Low Low Low High Mid Profit Low Low Mid High Low Achievability Funding Op<ons Low Low High Mid Low Efficiency Low Low Mid High Mid Regula<on Low Low Low Low Mid Logis<cs High N/A Low Mid High Affordability Cost Low Low High Mid Low

12 Alternatives Status Quo Sell Merge Engage Seek Investment A:rac<veness Strategic Fit Low Low Mid High Mid KPIs Low Low Low High Mid Profit Low Low Mid High Low Achievability Funding Op<ons Low Low High Mid Low Efficiency Low Low Mid High Mid Key Takeaway: Engagement is the primary op<on, however investment is required to achieve Regula<on Low Low Low Low Mid Logis<cs High N/A Low Mid High Affordability Cost Low Low High Mid Low

13 Solution Strategy Grow Engage

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15 Solution Limited match anendance World tour of regional and interna>onal friendly matches Increased match anendance Not enough posi>ve brand equity Refreshed brand and media strategy Increased revenue Increased fan base Lack of fan engagement Digital Engagement Plaaorm Increased fan engagement

16 World tour Positioning as a globally relevant team Showcasing world-class players to the world Gaining credibility for messaging in home region Friendly former French Colonies UAE Brazil UK Australia

17 Refreshed brand Refreshed Brand Paris Saint-Germain Marke>ng Collateral and Messaging Old Media/PR Strategy New Media TV Strategy Your world team Transi>on to new brand hooks Increased media presence (build players and families as celebri>es) Reality TV Show

18 Digital engagement platform Text messages to players Fans send text messages to players Messages displayed in locker room Players thank fans publically on social media/dep Mobile Apps CRM Backend Player stats tracker Fans record videos in stadium DEP coordinates content DEP releases Acer video from matches Content crea>on and management Fans ask ques>ons of playes DEP aggregates ques>ons for players Players release videoblog of responses

19 Digital engagement platform Mobile Apps Text messages to players Fans send text messages to players Messages displayed in locker room Key Takeaway: Every touch point of your brand Fans record should CRM reinforce Player that stats the team videos is the in most tracker Backend stadium engaged with their fans DEP coordinates content Players thank fans publically on social media/dep DEP releases Acer video from matches Content crea>on and management Fans ask ques>ons of playes DEP aggregates ques>ons for players Players release videoblog of responses

20 Implementation Strategy Communicate Create

21 Implementation Timeline Pre Season 2013 Season Pre Season 2014 Season Pre Season 2015 Season Pitch plan to coach Recruit media/pr team Challenge global teams to friendly matches Heavy PR push, promo>ng players families and back stories Tour globally Communicate Amplify wins on tour and match season wins with >med PR stories Engage media groups Develop Your world team brand Scope Digital Engagement Plaaorm (DEP) Rollout Your World Team brand Create Build and test DEP Launch DEP Mainstream DEP Rollout (basic features) Prepare Behind The Scenes tour TV show Film TV Show Sell TV Show Rights Screen TV Show Offer naming rights to stadium ANach microphones and heart monitors to players Test Advanced DEP features, including in- stadium featured Test Mobile Apps Launch newly named stadium Rollout Advanced DEP features EUR 10 million EUR 10 million EUR 5 million EUR 5 million EUR 5 million EUR 5 million Cost

22 Change Management Fans Players & Coaching Team External Communication Investors Online engagement process Incentives for long-term membership Brand marketing Season ticket holders have exclusive access to Training sessions Incentives for international games Contract management from recruitment Social media & PR training Engaged PR team Players and coaching team training Broadcasting: consistent narrative Long term profit rewards Educate on strategy outcomes Engagement Define Analysis Recommend Implement

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24 Risks Risk Likelihood Consequence Mi<ga<on Money/Revenue Medium High Diversify revenue streams ANract investors Brand Medium High Control narra>ve Key Players/Management Team Low Low ANract future talent/retain exis>ng talent Compe>tors Medium Medium Agile media strategy Tight player contracts Regulators Low Medium Watching brief by legal team

25 Finances Profit & Loss Statement Revenue CAGR Ticket sales % Commercial % Sponsors % Broadcas<ng % Total Revenue Key Takeaway: Profitable from 2014 season onwards (103.8) (114.2) (125.6) (138.2) 10% Players (78.0) (85.8) (94.4) Other Staff (10.0) (10.5) (11.0) (11.6) (12.2) (12.8) (13.4) Transfers (53.0) (10.0) (10.0) (10.0) Social Security (44.0) (46.2) (48.5) (50.9) (53.5) (56.2) (59.0) Stadium Opera<ons (28.0) (29.4) (30.9) (32.4) (34.0) (35.7) (37.5) Stadium Renova<ons Engagement (20.0) (10.0) (10.0) 5% 5% 5% - Total Expenditure (213.0) (161.9) (188.4) (172.3) (207.5) (220.3) (258.1) Profit / (Loss) (110.0) (25.6) (21.1)

26 Finances: Investment Options Qatar Sports Investment Bank A:rac<veness High Med Med Achievability Med Low Low Affordability High Med High Current Value Investment IRR 124% 5 Year ROI 230% Revised NPV Annual Profit EUR 97 million EUR 40 million EUR 189 million EUR 50 million per annum Crowd Source Fans Define Analysis Recommend Implement

27 Finances: Profit & Loss (millions) (100.0) (200.0) (300.0) Total Revenue Total Expenditure Profit / (Loss) Define Analysis Recommend Implement

28 Finances: Potential Additional Revenue Overseas Broadcast Revenue Europe: EUR 47 million UAE: EUR 15 million Asia: EUR 25 million Prize Money French League: EUR 10 million UEFA Champions League: EUR 20 million Sponsors Naming rights to stadium: EUR 50 million Other shirt sponsors : EUR 20 million Total = EUR 187 million annual Define Analysis Recommend Implement

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30 Your Paris Saint-Germain FAN BASE 10 million interna>onal MATCH ATTENDANCE 85% Stadium Advance Sale >ckets FAN ENGAGEMENT 4 million unique visitors PROFIT EUR 50 million annual NPV = EUR 189 million