PARIS SAINT GERMAIN BEST OF FRANCE, BEST OF WORLD Alireza Almaleki Faith Kaplan Amandeep Sekhon Brian Chipman
Agenda Clarify Analysis Recommendation Implementation Mitigating Risks
Dream Bigger Goals 1. Re-establish the Winning Tradition at Paris St Germain 2. Boost Revenue Quickly 3. Quality Over Quantity For Official Partners
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
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
Criteria for Success Improve Revenue Streams Build Brand Identity Create a Winning Organization
Alternatives 1. Develop Home-Grown Talent. 2. Lower the Cost of Fan Experience. 3. Aggressive Transformation
Talent Advantages Disadvantages Time Intensive Sustainable Long-Term Income Flow Long Term Payoff Not a Core Competency
Price Advantages Disadvantages Difficult to Maximize Revenue Fill Stadium Brand Dilution Forgiving Fans Reduced Commercial Appeal
Aggressive Transformation Advantages Disadvantages Immediate Returns Fan Experience Builds Brand Cost Expectations
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
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
Implementation Offense Acquiring Top French and International Players Midfield Stadium and Fan Experience Defense Strategic Brand Partnerships
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
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
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
Time Line Transfers Stadium Customer Services Marketing Wages 2011 Q3 Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 100M 75M 50M 26M 26M 24M 30M 30M 30M 20M 40M 50M 150M 200M 235M
Financial Projections IN EUR 2011 2012 2013 2014 Ticket revenue 70000000 95000000 150000000 234000000 Commercials 75000000 87000000 104000000 135000000 Sponsorship 85000000 97000000 116000000 152000000 Broadcasting 123000000 137000000 165000000 214000000 Total Revenue 343000000 416000000 540000000 750000000 Expenses 300000000 330000000 360000000 400000000 Transfers NA 10000000 75000000 50000000 Stadium 26000000 26000000 24000000 Fan Experience 30000000 30000000 30000000 Marketing 20000000 40000000 50000000 N.Income 2000000 40000000 195000000 NPV $181,382,419.23 WACC 10%
Revenue and Income 800 Projections 250 700 600 200 500 400 300 150 100 200 100 50 0 2012 2013 2014 0 Revenue N.Income
Cost Breakdown Marketing 110 Transfers 135 Fan Experience 90 Stadium 80
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
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
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
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
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
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