Business strategies of football clubs


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Strategies of football club

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  • 1) Manchester United: Manchester United have the most fans around the world, with an astonishing 659 million Red Devils (nearly a tenth of the world's population). This fan-base put them 1st in the list of most popular football club (According to Bleacherreport.coms)2)      Barcelona: Barcelona might have won everything in recent five years, but they are only the second most popular football club, with approximately 260 million fans.3)      Real Madrid: Real Madrid are 3rd in list of most popular football clubs with an estimated 180 million fans.4)      Chelsea: Chelsea are another club to have a huge fan base at Asia which leads them to have 140 million supporters worldwide which puts them 4th in the list of most popular football clubs.
  • Brands are the most valuable intangible assets in business today. They drive demand, motivate staff, secure business partners and reassure financialmarkets. Leading edge organisationsrecognise the need to understand brand equity and brand value when making strategic decisions
  • Ajax FC :Everyone involved in football has heard of the fine youth academy that AFC Ajax possesses called ‘De Toekomst’ or ‘The Future’. Founded on 18th March 1900, the club plays the so-called ‘Total Football’ approach in a 4-3-3 system invented by the great Dutch manager RinusMichelsNotable players Johan cyruff, Marco Van basten, Denis Bergkemp,clerenceseedorf , wesleysneijderPorto FC :Portuguese club….in last decade has been one of the most underated team to perform exceptionally welll both financially and trophy wise…. In last 10 years 8 league titles , 2 UEFA cups and 1 champions league title.Its policy grow a player and sell them for high profits…Porto’s model is clear, they need to constantly find, develop and produce top class players who can produce profit and at the same time keep them competing on all fronts. They have had some bad deals, like the sales of Luis Fabiano and Diego for £2.5million and £5million respectively. That is to be expected, it would be impossible to perfect every single deal. Porto’s model has proved extremely successful but it heavily relies on its scouting system in South America and its own youth system in order to make a profit. One day it is very possible it will come unstuck but the club’s record in the last decade speaks for itself. The fact it has sales of £400million on players and 24 trophies is a truly incredible record for a club with the most unique model in the history of the sport.
  • Business strategies of football clubs

    1. 1. Business Strategies of Football Clubs Litesh BhatiaSuraj ChopdaKushal ChaudhariKirankumar Dash-
    2. 2. History of the Game
    3. 3. Leagues of the World
    4. 4. Strategy of a club • Revenue Model • Expenses • Brand Value
    5. 5. Revenue Areas • Match-day Ticket Sales & Hospitality • Broadcasting Rights • Sponsorships & Endorsements • Dedicated TV Channels & Radios • Merchandise & Memorabilia • Franchises & Partnerships • Betting & Gaming • Pre Season Tours
    6. 6. Expenses
    7. 7. Assets • Fan Base • Manchester United – 350 mn • Barcelona FC – 261 mn • Real Madrid - 180 mn • Stadiums • Hospitality
    8. 8. • Brand Equity Value Brands are the most valuable intangible assets in business today
    9. 9. How is the Value decided?
    10. 10. What determines the success of a football clubs? 1) Trophies, honors , wins 2) Financial wins (Profit making) Let see where your club is placed!!!
    11. 11. Variables affecting strategies of club Management Staff Playing Squad Playing time each player Trophies Football clubs
    12. 12. Styles • Madridista (Galacticos) • Ajax FC (Youth System) • Rock Like Porto FC (Transfer player earn money)
    13. 13. Craziness of transfer market!! • How is a player valuated?
    14. 14. 9 Factors To Determine a Football Players Transfer Value • • • • • • • • Squad status Age Talent League Factor Premium Position Adaptability Depreciation Image rights • Iconic Status
    15. 15. Broadcasting & TVs • Viewership – 900 mn homes in 202 counties • Broadcasting Rights -$ 6 bn Annually
    16. 16. Merchandise Stores & Sales • • • • • Kits Training Apparel Fashion Apparel Baby Accessories Equipments  Luggage's  Golf Accessories  Others • • • • • Home wears Magazines Prints & Posters Souvenirs Gifts o o o o o Watches Jewellery DVDs Books Executive Gifts
    17. 17. Franchises • Coffee Bars • Restaurants • Megastores • Gamplexes • Online Football Markets
    18. 18. “Impossible is just a big word thrown around by small men who find it easier to live the world they’ve been given than to explore the power they have to change it. Impossible is not a fact. It’s an opinion. Impossible is not a declaration. It’s a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.” Thank You