Corporate Finance, M&A and Analytics

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1 Corporate Finance, M&A and Analytics

2 Carteret Capital at a Glance Carteret Capital Carteret Capital is a corporate boutique based in the City of London, and born from sectoral experience in two industries - oil and gas, and sports. Stephen Metcalfe Chief Operating Officer, Carteret Capital Carteret Capital has a deep understanding of the sports finance industry. With an established presence on both sides of the Atlantic and across the globe, Carteret Capital is well positioned to provide clients with local expertise and a unique perspective. Our knowledge and experience in the football sector underscores our commitment to providing clients with unparalleled insight and expertise. Professional We are unashamedly corporate in our approach. With global investment banking expertise, our ethos is geared to help clients develop corporate strategies and to achieve strong financial and operational outcomes. With a bespoke inhouse legal resource, we are not only able to manage and structure complex finance transactions, we are also able to supervise counter-party lawyers to ensure that such transactions are completed as speedily as possible. Corporate Carteret Capital's corporate approach is driven from connections, relationships and partnerships with some of the world's leading operators, investment banks and global financial partners. We speak the language of corporate finance in a way that can make a demonstrable difference to clients. We are innovators, for example, in our quantitative analysis work in football. In all our work our objective is to create a competitive advantage for our clients, combined with exceptional service levels. Dynamic For structured lending, receivables financing, corporate restructuring, equity investment or complex quantitative analysis, our expertise in the markets, combined with detailed knowledge of industry and business operations, puts us in a unique position. When combined with proprietary analysis, bespoke global partnerships and relationships, transactional speed and unparalleled communications, we become an exceptional and dynamic corporate advisor. Carteret Capital is setting the pace in innovative and intelligent finance solutions to become a leading global corporate services firm in football. The global reach of Carteret Capital and our affiliates provides clients with exceptional funding and investment opportunities

3 Corporate Finance and Capital Raising The global reach of Carteret Capital, and the strength and expertise of its football finance team in particular, enables the firm to provide funding opportunities across a diverse range of scenarios and propositions. Player Transfers In transfer deals involving a significant deferred payment arrangement, Carteret Capital is often able to provide finance on the deferred sum. This can be beneficial to the selling club by providing liquidity for replacement player acquisitions, or for operational or infrastructure investment. It can also be beneficial to the buying club because the sourcing of finance by Carteret Capital for the selling club can help justify the inclusion of a significant deferred element in a proposed player acquisition, thereby allowing the buying club to retain cash. Premier League Central Distributions Carteret Capital is often able to provision finance to football clubs secured against future Premier League central distributions (including parachute payments for relegated clubs). This can offer additional liquidity for clubs at a more opportunistic point in the club s cash flow cycle - for player acquisitions, for operational activities, or for capital projects. Comprehensive coverage of the football sector through extensive experience on numerous corporate and commercial transactions UEFA Distributions In a manner similar to Premier League central distributions, Carteret Capital is often able to source finance against future UEFA distributions for clubs participating in the Champions League or Europa League competitions. Commercial Revenues This can be a more complex form of corporate finance, but Carteret Capital has the expertise to formulate bespoke and intelligent finance solutions in respect of future commercial revenues. These might include, for example, sponsorship, retail, stadium and ticket revenues. At Carteret Capital we understand, through real world experience, the challenges and bespoke financing structures particular to the football industry. Stadium Finance Carteret Capital can provide some unique fundraising solutions, tailored to the club s individual requirements, and secured against the stadium, or similar assets. This could provide a fresh capital injection for the club. Carteret Capital has the industry knowledge and transactional expertise to help clients at every stage, whether they are focused on corporate finance and capital raising or M&A transactions.

4 M&A and Bespoke Advisory Services With many years investment banking experience in M&A Carteret Capital has developed a strong equity investment franchise dedicated to football club sale and acquisition. M&A Advisory Services Carteret Capital can provide advice to prospective owners to identify the most effective investment and acquisition opportunities including advice on appropriate corporate structures pre and post investment. The expertise of the team through experience of team members working within football clubs also provides an understanding of the financial and operational nuances of clubs, and ensures focused, strategic and best fit advice. Sourcing Purchasers/Investors Recognising that every football club is different, and each club s requirements are different, Carteret Capital can provide discernible strength to the process of identifying a purchaser or investor. Carteret Capital has deep financial relationships across the world, and these could provide invaluable assistance in the identification process. Legal and Financial Due Diligence Carteret Capital is in a unique position of having in-house counsel within the team, with substantial experience of M&A transactions in the football sector. This provides significant advantages for investors/prospective owners in ensuring a thorough understanding of the football club; its commercial arrangements and its financial position. By the same token, the collaboration also enables football club clients to create a highly effective legal and financial proposition to prospective investors or purchasers, and increases the speed of an investment or purchase transaction. Connecting People, Capital and Ideas Corporate finance for football clubs (or for prospective purchasers of football clubs) is not one-dimensional. It is not even two-dimensional. It is a tripartite combination of (1) people at Carteret Capital that intricately understand both corporate finance and the business of football, with (2) the application of capital that has been sourced to meet a club s specific requirements (rather than the other way round), and (3) the ability to understand and act on the club s unique corporate, commercial and football strategies. Carteret Capital understands - genuinely understands - that structuring and introducing capital and finance at the right time, and in the right manner, can contribute significantly to success on the pitch. We understand the cash-flow cycles, and we have a pedigree in helping clubs succeed. Smart corporate finance comes from working closely together and maximising expertise. Carteret Capital offers expert advice and first class execution by connecting people, capital and strategic ideas.

5 Commercial Analytics In partnership with Weber Shandwick and Flipside (leading communications and data diagnostic firms) Carteret Capital is able to transform a football club s commercial operations. Bigger, Better, More The key objective of our commercial analytics work for football clubs is to transform the club s commercial revenues derived from sponsorship and partnerships. There are 3 stages to each project: (1) Identify the club s current position on the drivers that improve commercial revenues; (2) Refine, transform and reconstitute the club s fanbase to increase quantity and quality of sponsors; (3) provide a bespoke road map to increase fanbase and audience (and audience conversion) for higher revenues. Commercial Operations - Current Position Our primary focus is to significantly increase the revenues generated from sponsorships and partnerships. Sponsors are motivated to partner with a club (and spend more) by the strength, quantity and quality of a club s audience and fanbase. Our first step is to assess the current state of the club s various databases, and how these are being utilised. Success in applying database diagnostics in other consumer sectors, combined with substantial expertise in commercial operations at football clubs. Refine and Transform the Fanbase We refine the club s data to make it more useful and attractive to sponsors. We also undertake a detailed competitor analysis - direct competitors, similar category and non-category to identify some best practice options for better consumer engagement. We can give a clear comparison of the potential monetary value of unrefined and refined sponsorship opportunities. We then map the refined and better segmented data to improve current sponsorship values, and to attract sponsors from better matched sectors, industries, companies. Football clubs have huge potential to increase commercial revenues from bigger, better and more sponsorship. The critical starting point is to identify and value the assets the club has to offer to sponsors (particularly in respect of its fanbase and league participation) - and this is not easy. It becomes even more difficult to then refine those assets to increase revenues; and harder still to then produce an action plan ( Road Map ) to utilise these refined assets to attract more and better sponsors. We have the capability to do this. Road Map for Increased Commercial Revenues The refinement of the club s audience and fanbase will enable its data to be structured in a manner that is more attractive to sponsors. The Road Map that we prepare for the club will then enable the club to build the quantity and quality (loyalty, propensity to spend profiling, geographical scope, fan value modelling) of its fanbase. The Road Map will provide a step-by-step action plan to increase the club s databases, to increase audience conversion, and to attract Bigger, Better and More sponsorship income. We can also provide additional services to help the club implement and activate the Road Map and/or to source Bigger, Better and More sponsors for the club. This is not theoretical science, it is a real solution that provides demonstrable financial results.

6 Quantitative Analysis Leading-edge quantitative analysis work in football - derived from our quant work in investment banking - to provide unique, extraordinarily accurate, objective intelligence on football players, team performance and managers. Player Identification, Rating and Valuation We provide search reports for players in specific positions and give each player a unique rating and a real monetary value. Quantitative Analysis in Football - Key Areas of Work Player Identification, Rating and Valuation Team Performance Analysis Manager Assessment and Recruitment M&A - Club Intelligence Report People who run ball clubs, they think in terms of buying players. Your goal shouldn t be to buy players, it should be to buy wins. Team Performance Analysis We assess how every player is performing vs potential, and how the team can be best played (with current or new players) to maximise final league position. Manager Assessment and Recruitment Detailed objective intelligence on how a club s league position might be improved with the current or an alternative manager. IT S THE ALGORITHM THAT MAKES THE DIFFERENCE 1. Relying solely on eyesight to spot player talent is risky, and can prove extremely costly. 2. People with vested interests in players, have well, vested interests. 3. Raw data on a player tells you very little about how good a player really is. 4. How good a player really is, is based on HIS contribution to his TEAM winning football matches. 5. This is where our [proprietary] algorithm makes things exciting: 5.1. For each player, take raw data on every match in which he has played 5.2. Within EACH and EVERY one of those matches, identify the key match events ( KMEs ) that led, or could have led, to a goal being scored or being conceded 5.3. Then using our algorithm, we assess that player s contribution to EVERY SINGLE KME, in EVERY SINGLE match 5.4. It is an incredibly accurate method of assessing how good a player is, and provides a unique CARTERET RATING for every player 6. The CARTERET RATING allows us to compare a player s real ability with other players, and to give him an intrinsic monetary value to compare to his likely market value.

7 Contact Details Carteret Capital 85 Gresham Street, London, EC2V 7NQ, United Kingdom T: E: W: Carteret Capital finds itself in a unique position, where it can combine global corporate finance, investment banking and M&A expertise, with substantial commercial and legal experience, and a demonstrable inside understanding of the mechanisms of football club operations. All with the simple objective of creating and adding value for the football club.