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Football Industry Analysis - Shyam Prasad - MIB – 1113 - 007

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• "Football isnt a matter of life and death - its much more important than that!" Bill Shankly

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• “I have the chance to do for a living what I like the most in life, and that’s playing football. I can make people happy and enjoy myself at the same time.”• ~Ronaldinho

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Objective• Football Industry• Players of football Industry• Size of the Industry• Market share of players• Profitability Analysis• PEST Analysis• Porter’s Five Forces

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The Industry• Cup Competitions• League Competitions• Broadcasting rights• Player transfer fees• Sponsorships• Footballer’s Earnings• Product manufacturers earnings• Games

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Players of the Industry• Manchester United• Real Madrid• Arsenal• Bayern Munich• Barcelona• AC Milan• Chelsea• Juventus• Liverpool• Internazionale• Others

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Players of the industry• Top Sponsors • Aon corporation • Nike • Adidas • Fly Emirates • Standard Chartered Bank • Telekom • Bwin • UNICEF

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Size of the Industry

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Size of Football industry• Trends of Turnover • Trends vary based upon “On pitch performance” » Sponsorship bonuses30002500200015001000 500 Turnover 2010 0 turnover 2011

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Market share

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Profitability Analysis

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Profitability Analysis – ManU

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Profitability Analysis - ManU

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Political Environment• Governing bodies

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Economic environment• Sponsors• Owners• Stock Markets

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Social Environment• Fans / Supporters• Press• Culture

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Technological Environment• Media• Broadcasting Partners

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PEST analysis • Financial Fairplay Political • Squad size restriction • Owner’s debts Economic • Inflation • Hooliganism Social • Gossips • MediaTechnological • Broadcasters

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Porter’s Five Forces

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• Bargaining Power of Buyers » Fan attendance – affects ticket sales Wolves pay price off the pitch” 18% less Reduced ticketLack of success season ticket rates renewals » TV viewer ratings Porter’s Five Forces

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• Bargaining Power of Suppliers » Sponsors bargain over provision of finances » Player transfers Sponsors / Negotiations Deal Owners Other clubs Negotiations Deal Porter’s Five Forces

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• Threat of substitutes » Other predominant sports in respective countries/continents Racing Hockey Rugby Golf Classic Sports Porter’s Five Forces

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• Threat of competitors » Rival clubs , Foreign league clubs » Overseas Fans Porter’s Five Forces

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• Threat of new entrants » New club entering into competition (Long term threat) Went on to become Now, Most valuable Relegated in 1974 Champions for 11 club In the world Times Porter’s Five Forces

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Resources1.Wikipedia2.Footballeconomy.com3.Footballfinance.com4.Sun magazine5.Google6.Deloitte Football Money League

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Questions?

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Thank you!