Football: 10 Rules of the Business
Understanding football business with data and charts.
Presented at Lomonosov Business School. Moscow State University
Major League Soccer represents the best soccer has to offer in North America. On the business side, the League stands out as it utilized a different structure from other soccer leagues. The single-entity structure MLS used provides many benefits as it is a growing league, but it has also slowed down the growth of other teams as it features a Salary Cap. Another area the MLS dramatically differs from other well-established soccer leagues in the world is its Play-off style tournament. This approach from the League has been in constant reproach from many of its fans, so it comes as no surprise to hear the MLS entity talks about a new Super League fusing La Liga MX alongside the MLS. With the World Cup 2026 getting closer, which will be played between the US, Canada, and Mexico, this new Super League can just be one of the many strategic moves to take Major League Soccer to the next level.
My classmate and I created this pitch deck for an advertising campaign class. We were tasked to choose a brand and develop an advertising campaign by researching their current business and the target consumer, developing an insight, and then selecting media channels and creatives based on the research.
My analysis of the eSports market. If you like my research, you will probably also like my technology newsletter! Feel free to reach out at lakshman111@gmail.com if you want to be added or just have general comments on the research.
Here is my last newsletter: http://us8.campaign-archive1.com/?u=ff23279fa1f2286aa84dc81de&id=87cfab8a27&e=[UNIQID]
Sport is the real common denominator among people all over the world, beyond socio-economic and cultural differences. It is a strong power: Everyone is interested in sports.
The sports consumptions have enough socio-economic specificities to justify that the offer develops a marketing adapted to the sporting cultures. It is a market that continues to grow and it is normal that we wanted to see all these specificities.
Major League Soccer represents the best soccer has to offer in North America. On the business side, the League stands out as it utilized a different structure from other soccer leagues. The single-entity structure MLS used provides many benefits as it is a growing league, but it has also slowed down the growth of other teams as it features a Salary Cap. Another area the MLS dramatically differs from other well-established soccer leagues in the world is its Play-off style tournament. This approach from the League has been in constant reproach from many of its fans, so it comes as no surprise to hear the MLS entity talks about a new Super League fusing La Liga MX alongside the MLS. With the World Cup 2026 getting closer, which will be played between the US, Canada, and Mexico, this new Super League can just be one of the many strategic moves to take Major League Soccer to the next level.
My classmate and I created this pitch deck for an advertising campaign class. We were tasked to choose a brand and develop an advertising campaign by researching their current business and the target consumer, developing an insight, and then selecting media channels and creatives based on the research.
My analysis of the eSports market. If you like my research, you will probably also like my technology newsletter! Feel free to reach out at lakshman111@gmail.com if you want to be added or just have general comments on the research.
Here is my last newsletter: http://us8.campaign-archive1.com/?u=ff23279fa1f2286aa84dc81de&id=87cfab8a27&e=[UNIQID]
Sport is the real common denominator among people all over the world, beyond socio-economic and cultural differences. It is a strong power: Everyone is interested in sports.
The sports consumptions have enough socio-economic specificities to justify that the offer develops a marketing adapted to the sporting cultures. It is a market that continues to grow and it is normal that we wanted to see all these specificities.
A study of the global football industry in changing times with a generic focus on football in the media age, industry leaders, recent trends, potential pitfalls, technology in football and the global impact of the FIFA World Cup
A study of the global football industry in changing times with a generic focus on football in the media age, industry leaders, recent trends, potential pitfalls, technology in football and the global impact of the FIFA World Cup
Manchester United Independent Business ReviewKarol Stępień
The business report about one of the most famous football clubs in the world. It contains information about football industry, key aspects of managing a football club possible strategy for the club and financial forecasts.
Report was prepared by a student. Don't hesitate to contact me!
The Presentation is Submitted to Kedge Business School . It analyses the position of Team Real Madrid from a case from HBS and recommends solutions for it.
Grant Thornton - Focus on Football Finance UKGrant Thornton
In this briefing we cover UEFA’s Financial Fair Play Regulations, we consider FIFA’s increasing demands on the clubs to release their highly-paid players for international duties, we look at the reasons behind Manchester United’s decision to seek to sell shares in Singapore and we comment on the monies that the Premiership Clubs receive from the sale of media rights.
An Analysis Of European Soccer Finances And Their Impact On On-field SuccessLeon Corriea
This report takes a closer look at the business of soccer and how analytics can be used to improve financial decisions that impact performance on-field. It identifies all the essential levers that are involved in the financial decision making process at the top European soccer clubs and, through the use of analytics, assigns importance to each one of them. By recognizing the most important factors, soccer clubs can prioritize their efforts in improving those areas that have the maximum impact on on-field success.
Brand Management, how valuable in the Digital Age?
Presentation at ESCP Europe campus Madrid.
An open discussion about the role of Brand and Brand Management in the Digital Age.
Carta abierta al Excelentísimo Sr. Ministro de Educación, Cultura, y Deporte, acerca del Real Decreto-Ley 5/2015, de 30 de abril, de medidas urgentes en relación con la comercialización de los derechos de explotación de contenidos audiovisuales de las competiciones de fútbol profesional
Introducción a la mesa redonda "La revolución M (Mobile) y el Turismo", Universidad Internacional Menéndez Pelayo (UIMP)
Ponentes:
Cristina Recoder - Turespaña
Pedro Jareño - minube.com
Iñaki Berenguer - Pixable / SingTel
Miguel Ortega - Blink Bookings
Modera:
Francisco Hernández Marcos - 11 Goals & Associates
Creating a social media strategy for a tourism business | Block 4: Case prese...Francisco Hernandez-Marcos
Creating a social media strategy for a tourism business
Block 4: Case presentation
International Master in Hospitality and Tourism Management
ESCP Europe - Cornell University School of Hotel Administration
Creating a social media strategy for a tourism business | Block 3: E-Commerce...Francisco Hernandez-Marcos
Creating a social media strategy for a tourism business
Block 3: E-Commerce in Tourism
International Master in Hospitality and Tourism Management
ESCP Europe - Cornell University School of Hotel Administration
Creating a social media strategy for a tourism business | Block 2: Social Tou...Francisco Hernandez-Marcos
Creating a social media strategy for a tourism business
Block 2: Social Tourism
International Master in Hospitality and Tourism Management
ESCP Europe - Cornell University School of Hotel Administration
Creating a social media strategy for a tourism business | Block 1: Basics of ...Francisco Hernandez-Marcos
Creating a social media strategy for a tourism business
Block 1: Basics of online marketing
International Master in Hospitality and Tourism Management
ESCP Europe - Cornell University School of Hotel Administration
Presentación en la Universidad Internacional Menéndez Pelayo acerca de la influencia de las redes sociales en el conocimiento y en la marca turística España.
Conferencia sobre Marketing Online y Comunidades virtuales para máster de la Universidad Politécnica de Madrid y la Asociación Española de la Consultoría
Social Marketing and Commerce. Marketing and E-Commerce subject at the International Master in Industrial Management.
Guest speaker: Francisco Hernández Marcos
Universidad Politécnica de Madrid
Politecnico di Milano
Kungliga Tekniska högskolan
Online Marketing. Marketing and E-Commerce subject at the International Master in Industrial Management.
Guest speaker: Francisco Hernández Marcos
Universidad Politécnica de Madrid
Politecnico di Milano
Kungliga Tekniska högskolan
E-Commerce. Marketing and E-Commerce subject at the International Master in Industrial Management.
Guest speaker: Francisco Hernández Marcos
Universidad Politécnica de Madrid
Politecnico di Milano
Kungliga Tekniska högskolan
La web 2.0 como plataforma de lanzamiento al marketing 3.0
Primer Congreso Iberoamericano de Marketing y Nuevas Tecnologías:
MARKETING 3.0 EN AMÉRICA LATINA
Ponencia de Francisco Hernández Marcos, ex Director de Estrategia Online del Real Madrid C.F.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Digital Transformation and IT Strategy Toolkit and Templates
Football: 10 Rules of the Business
1. Football: 10 rules
of the Business
Francisco Hernández-Marcos
11 Goals & Associates
Moscow
March 26th, 2015
This document has been produced by 11 Goals & Associates. It is not complete unless
supported by the underlying detailed analyses and oral presentation.
2. About me SHAMELESS
SELF-PROMOTION
Education: Universidad Politécnica de Madrid, UNED,
London Business School, University of Chicago – Fundaciò
“laCaixa” & Fundación Rafael del Pino scholarships.
Firms worked for: Abengoa, McKinsey&Co, ABN AMRO,
Real Madrid C.F.
Entrepreneurship: Crisalia
Social Media & Internet consulting: 11goals.com
Lectures & Speaker in 4 continents: The Wall Street Journal, UP Madrid, London
Business School, Cornell, Politecnico Milano, CEIBS (Shanghai), Kungliga Tekniska
högskolan, The Business Factory, Fulbright Spain, ESCP Europe, UIMP, Harvard,
Moscow SU, and several private companies.
Full profile: linkedin.com/in/franciscohm
3. 22
Views are our own. All information and
insights contained in this presentation are
either public or common knowledge
Disclaimer
4. 33
About Football
Source: Wikipedia; FanPageList; UEFA; Reuters; IBT
First played in England in 1863, Football had had its roots in
several ball games played in different parts of Europe for
centuries.
World’s most popular sport: 250 mill. players in 200
countries.
FIFA has more member countries than the United Nations.
Some players are among the most respected celebrities in
their countries, and Worldwide.
‐ Didier Drogba is credited with brokering a Cease-Fire in
Ivory Coast that ended a 5-year civil war.
‐ Cristiano Ronaldo is the most followed person in Social
Media (141 mill. in FB+TW).
Global TV audience (mill. people):
‐ European Champions League final: 380
‐ “El Clásico” (Real Madrid-Barcelona): 200~400
‐ Super Bowl: 160
5. 44
Football lifts the spirit…
Source: Footballnomics
World Cup -> Less suicides not only
in June, but for the whole year
…and saves lives!
6. 55
Revenue ranking by sport leagues
Source: Wikipedia
6.600
5.867
3.667
3.200
2.971
2.000
1.900
1.700
1.300
980
919
896
551
National Football League
Major League Baseball
National Basketball Association
Premier League
National Hockey League
Bundesliga
La Liga
Serie A
Ligue 1
Nippon Professional Baseball
Campeonato Brasileiro Série A
Russian Premier League
Süper Lig
Revenue
EUR mill.
Combined, football is
probably the highest
revenue-generating
professional sport in
the World
206,3
195,6
122,2
160,0
99
111,1
95
85
65
81,7
45,9
56
30,6
Football leagues
Revenue per team
7. 66
Most valuable sport clubs
Source: The World's 50 Most Valuable Sports Teams 2014 (Forbes)
3,44
3,20
2,81
2,50
2,30
2,00
1,85
1,80
1,70
1,55
1,50
1,45
1,40
1,38
1,35
1,33
1,31
1,25
1,23
1,22
1,20
1,20
Real Madrid
FC Barcelona
Manchester United
New York Yankees
Dallas Cowboys
Los Angeles Dodgers
Bayern Munich
New England Patriots
Washington Redskins
New York Giants
Boston Red Sox
Houston Texans
New York Knicks
New York Jets
Los Angeles Lakers
Arsenal
Philadelphia Eagles
Chicago Bears
Baltimore Ravens
San Francisco 49ers
Chicago Cubs
Ferrari F1
Team value
USD bill.
4,2%
Football clubs
1-Year growth
23,1%
-11,2%
8,7%
9,5%
23,8%
41,3%
10,1%
6,3%
5,6%
14,3%
27,3%
11,1%
7,5%
35,0%
0,3%
4,0%
5,0%
6,3%
3,8%
20,0%
4,3%
8. 77
Football: The rules of the Business
1) Football has social value, and business value too
9. 88
Football clubs revenue ranking
Source: Deloitte Football Money League (2015); UEFA (2012)
550
518
488
485
474
414
388
359
306
279
262
250
216
214
170
165
164
162
155
144
Real Madrid
Manchester United
Bayern Munich
FC Barcelona
Paris Saint-Germain
Manchester City
Chelsea
Arsenal
Liverpool
Juventus
Borussia Dortmund
AC Milan
Tottenham Hotspur
Schalke 04
Atlético de Madrid
Napoli
Internazionale
Galatasaray
Newcastle United
Everton
Revenue (13/14)
EUR mill.
First
56%
Second
21%
Third
8%
Other
15%
Revenue matters. Securing a significant amount
of recurring revenue is the most important
factor for succeeding in the pitch.
Finishing position of highest-
spending club in players wages
(UEFA domestic leagues)
10. 99
Some research shows that league position is strongly
correlated (R2=89%) with wage expenditure
Source: Footballnomics
BACK-UP
…but same research tells us that correlation with transfer spending is low (R2=16%)
Are wealthier clubs profiting
from the non-existence of
superior options for over-
performing players?
11. 1010
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by
market wage), the better the team does on the pitch
3) Revenue drives long-term team’s performance
12. 1111
Sources of revenues
Top 20 teams in 2013/14 season
Source: Deloitte Football Money League; own analysis
Commercial is king:
larger and growing faster
Matchday
19,8%
Broadcast
39,1%
Commercial
41,1%
5yr-CAGR: 7,9%
5yr-CAGR: 14,7%
5yr-CAGR: 3,6%
13. 1212
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue:
larger and growing faster
14. 1313
Revenue breakdown and key drivers
Source: Various
Revenue
Matchday
Broadcast
Commercial
Domestic
International
(Champions League,
Europa League)
Drivers
• Stadium ownership
• Stadium size
• Income per capita
• VIP facilities
• Dynamic pricing (when possible)
Actionable by the club
Drivers
• Lobbying & bargaining to the league
• Team performance
• League salesforce skills
Drivers
• Team performance
• League salesforce skills
Drivers
• Historical Team Performance
• Brand positioning
• Fan base
• Big Ticket contracts bargaining
• Long-tail contracts salesforce
• Loyalty card
• Summer tours
15. 1414
Matchday revenue drivers
BACK-UP
15%
25%
40%
Standard
VIP (2015)
Top VIP
(2015)
New
generation
99.786
85.000
84.412
81.044
80.667
80.093
80.018
80.000
78.838
78.360
76.092
75.731
75.000
60.338
60.234
54.907
47.805
45.276
41.798
Camp Nou (FC Barcelona)
Stade 5 Juillet 1962 (MC Alger)
Azadi Stadium (Esteghlal FC, Persepolis FC)
Santiago Bernabéu (Real Madrid)
Signal Iduna Park (Borussia Dortmund)
Monumental "U" (Universitario de…
San Siro (AC Milan, Internazionale)
Stade des Martyrs (Vita Club)
Maracaná (CR Flamengo, Fluminense FC,…
Luzhniki Stadium
Atatürk (İstanbul Büyükşehir Belediyespor)
Old Trafford (Manchester United)
Allianz Arena (Bayern Munich, TSV 1860…
…
Emirates Stadium (Arsenal)
Stadio San Paolo (Napoli)
Vicente Calderón (Atlético de Madrid)
City of Manchester (Manchester City)
Anfield (Liverpool)
Stamford Bridge (Chelsea)
Capacity
Seats
Source: Wikipedia; Deloitte Football Money League; own analysis
Annual Matchday revenue per seat
EUR/seat/yr (13/14)
1.171€
1.404€
695€
311€
1.707€
1.173€
1.985€
347€
592€
1.188€
1.347€
2.031€
235€
VIP Matchday revenue
% of total Matchday revenues
No Ownership
Affluent fans
VIP capacity
16. 1515
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue: larger and growing
faster
5) Matchday revenue drivers: Stadium ownership, VIP
17. 1616
Broadcast revenue distribution
BACK-UP
La Liga
Source: Roberto Bayón; UEFA; other
Premier League Champions League
140
140
48
42
32
32
32
30
28
25
25
25
22
22
22
18
18
18
18
18
Real Madrid
FC Barcelona
Valencia
Atlético de…
Sevilla FC
Athletic Bilbao
Villarreal
Real Betis
RCD Español
Real Sociedad
Málaga
Getafe
CA Osasuna
RC Celta de…
Levante
Granada CF
Elche CF
Real…
Rayo…
UD Almería
•Negotiated deal. Static over the
contract’s term
•Unequal distribution (Gini: 0,365)
•Short term win, long term loss?
•Dynamic. Moderately depends on
team’s performance
•Equal distribution (Gini: 0,083)
•Ensures regular income to small teams
•Dynamic and aggressively dependant
on team’s performance
•Unequal distribution (Gini: 0,274)
•Performance bonus. Invest it wisely
EUR Mill.; 2013/14 season
117
116
113
111
108
107
102
93
92
91
89
88
88
87
86
80
79
77
76
74
Liverpool
ManCity
Chelsea
Arsenal
Tottenham
ManUnited
Everton
Newcastle
Southampton
Stoke
Swansea
West Ham
Crystal Palace
Aston Villa
Sunderland
Hull
West…
Norwich
Fulham
Cardiff
Total: 755 Total: 1.875 Total: 905
57
54
50
45
45
43
43
42
39
38
35
35
32
27
27
26
24
22
21
21
19
18
17
15
15
15
14
14
13
13
12
11
Real Madrid
PSG
Atlético Madrid
ManUnited
Bayern Munich
Chelsea
Juventus
FC Barcelona
Napoli
AC Milan
ManCity
Borussia
O. Marseille
Olimpiakos
Arsenal
B. Leverkusen
Shalke04
Kovenhaun
Ajax
Galatasaray
FC Zenit
Celtic
Real Sociedad
Benfica
CSKA Moskva
Steaua
Porto
S. Donetsk
Basel
Wien
Anderlecht
Viktoria Plzen
7,8x 1,6x 5,2x
18. 1717
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue: larger and growing
faster
5) Matchday revenue drivers: Stadium ownership, VIP
6) Broadcast revenue drivers: domestic league value
and team distribution, and success on international
tournaments
19. 1818
Football big-ticket sponsorships
Shirt
Source: Forbes; The Economist; other
Note: Stadium ranking is not exhaustive
BACK-UP
80
45
40
39
31
Manchester United
(Chevrolet)
FC Barcelona
(Qatar Airways)
Bayern Munich
(Deutsche Telekom)
Real Madrid
(Fly Emirates)
Liverpool
(Standard Chartered)
Kit
41
39
38
38
37 88
Real Madrid
(Adidas)
Liverpool
(Warrior)
FC Barcelona
(Nike)
Bayern Munich
(Adidas)
Manchester United
(Nike)
Signed
Adidas for
USD 88
mill. for 13
seasons
beginning
15/16
•Manchester United -and other English teams- are pushing hard by signing very profitable big-ticket contracts. The reason behind
why they sell at higher price might be that the English Premier League has more TV eyeballs.
•We may infer that RM, FCB and BM must be very good at the rest of the Comercial revenue drivers: long-tail contracts, loyalty
cards, summer tournaments, etc. or that part of the revenues of the players are invoiced through the club.
•Stadium’s naming rights deals are a great potential source of new revenues in the future. However clubs are reluctant to hear
offers that are not large and long enough (Real Option framework).
Yokohama just
signed with
Chelsea for USD
61 mill.
beginning
15/16
Stadium
8,8
5,5
Emirates
(Arsenal)
Etihad
(ManCity)
EPIC
(Real Madrid)
Allianz
(Bayern Munich)
Veltins
(Shalke 04)
USD mill./year
Real Madrid
signed pre-
deal with IPIC
(terms not
disclosed)
Joint deal
with Shirt
?
?
?
20. 1919
Stadium Naming Rights in the USA as of 2013
Source: New York Times
BACK-UP
•75% of US clubs have sold stadium naming rights.
•Business much more developed than in Europe. Perhaps because sponsors have developed a better ROI framework.
•Best deals in recent years.
•European Football teams can and should be able to reach similar deals for their global audience.
Interactive chart (NYT)
21. 2020
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue: larger and growing
faster
5) Matchday revenue drivers: Stadium ownership, VIP
6) Broadcast revenue drivers: domestic league value and team distribution,
and success on international tournaments
7) Commercial: Big-ticket contracts (dependant on TV
audience) are key. Stadium naming rights will bring
significant growth soon
22. 2121
Top Football clubs revenue breakdown
2013/14; EUR mill.
0 €
100 €
200 €
300 €
400 €
500 €
600 €
Commercial
Broadcast
Matchday
Source: Deloitte Football Money League, 11 Goals & Associates
Arsenal stadium (Emirates) is
considered as the most VIP facility,
with high Matchday revenue
~50% of home broadcast
revenues in Spain go to Real
Madrid and FC Barcelona
Being UEFA CL finalist made
Atlético to increase Broadcast
revenue by 86% in 1 year
PL’s large broadcast
contract, and its flat
distribution, secure
smaller teams with
enough income
RM’s and ManU’s
international focus
and strong
salesforce pays-off
Milan teams do not
own the stadium
PSG huge
commercial inflow
since Qatar
Investments Office
took over
Income per capita drives Matchday
revenue. Chelsea Vs Napoli
Bayern Munich big-ticket
sponsors are strong, and
shareholders of the club…
23. 2222
Cost drivers
Source: own analysis based on Annual Statements (2013/14); UEFA (2012)
ILLUSTRATIVE
EXAMPLES
Ratios to revenue
44% 48%
74% 69% 69% 69% 61%
51%
65%
17% 12%
Real
Madrid
FC
Barcelona
Average
Turkey
Average
Italy
Average
England
Average
Russia
Average
Spain
Average
Germany
Average
UEFA
Other
Amortization
Wages
•Team wages account for the most part of an average club costs
•There are significant differences in cost management among clubs (e.g. wage steps)
•57% of UEFA member clubs are loss-making
•Cost is the main driver of a Club’s profitability. Most Clubs are loss-making because
they are not enough diligent on the cost base
•UEFA is concern about these issues and is implementing “Financial Fair Game” policies
0%-8%-11% 2% -8%
Net profit to revenue ratio
EBITDA:
164 M.€
EBITDA:
134 M.€
-9%-22%
24. 2323
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue: larger and growing
faster
5) Matchday revenue drivers: Stadium ownership, VIP
6) Broadcast revenue drivers: domestic league value and team distribution,
and success on international tournaments
7) Commercial: Big-ticket contracts (dependant on TV audience) are key.
Stadium naming rights will bring significant growth soon
8) Main cost driver is team wages. It determines
(un)profitability
25. 2424
Source: Transfer Markt; own analysis
Note: Some transfers data are estimations
Player transfers of selected clubs
-200
-100
0
100
200
300
Profile 1: Super-Investors
Ronaldo;
Kaká;
Alonso;
Benzema
Departures income (GBP mill.)
Arrivals expenditure (GBP mill.)
Net income (GBP mill.)
Real Madrid CF
05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14Season
473
998
-525
-200
-100
0
100
200
300
FC Barcelona
281
640
-359
Total 05/06 to 13/14
Ramos;
Robinho
Diarra;
Gago
Robben;
Pepe;
Sneijder
Huntelar
DiMAría;
Özil;
Khedira
Coentrão
Modric
Bale;
Isco James;
Kroos
Suárez
14/15
Henry;
Milito
Alves
Ronaldinho Ibrahimovic
Villa;
Masch.
Fábregas;
Sánchez
Neymar
26. 2525
Source: Transfer Markt; own analysis
Note: Some transfers data are estimations
-50
0
50
100
150
Profile 2: Net investors profiting from opportunistic sales
Departures income (GBP mill.)
Arrivals expenditure (GBP mill.)
Net income (GBP mill.)
Atlético Madrid
Season
336
426
-90
-50
0
50
100
150
Valencia CF
280 291
-11
Total 05/06 to 13/1405/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15
Agüero
Forlán;
Simão
Torres
Falcao
Costa
Villa
Joaquín
Albiol
Mata
Soldado
Mathieu
Player transfers of selected clubs
27. 2626
Source: Transfer Markt; own analysis
Note: Some transfers data are estimations
-20
-10
0
10
20
30
40
Profile 3: Capital generators (concentrated in few players)
Departures income (GBP mill.)
Arrivals expenditure (GBP mill.)
Net income (GBP mill.)
Real Sociedad
Season
77
46
31
-20
-10
0
10
20
30
40
Athletic Bilbao
84
49
35
Total 05/06 to 13/1405/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15
Griezmann;
Bravo
Illarramendi
Del Horno
Aduritz
Martínez Herrera
Player transfers of selected clubs
28. 2727
Football business models
• Large, well-established teams with a long track record on
the pitch and a large fanbase all over the world.
• Revenues, large and stable, finance team.
• Key to profitability is being able to contain the payroll cost
of the players.
• Usually have successful junior academies, but it is difficult
for a player to walk all the steps onto the first team.
Description
• Real Madrid
• Manchester United
• Bayern Munich
• FC Barcelona
• Manchester City
• Paris Saint-Germain
• Chelsea
Examples
• Mid-sized teams with strong junior academies or a key
long-term investor, working to build a Commercial stream
and an international brand.
• Transfer fees come not only from the junior academy, but
from trading players who become stars in 2-3 years.
• From time to time succeed in Europe and get significant
revenues. Money buys time to build-up Commercial.
• Revenues are volatile and cash must be watched.
• Atlético de Madrid
• Shalke 04
• Valencia CF
• Fiorentina
• Ajax
• Monaco
• Small local teams with little chances to build-up a
Comercial revenue stream.
• Best source of revenue are transfer fees from players
coming from their junior school.
• Teams that do not succeed in developing talent are usually
money-losing clubs.
• Real Sociedad
• Villareal CF
• Elche CF
• Stade Rennais
• Atalanta B.C.
• FC Sochaux-Montbéliard
• Many Latam clubs
Factory of
players
“Lucky striker”
(prizes, trades, or
key investor)
Commercial
funds team
(wages & capex)
• Very small and small clubs that live almost exclusively on
tickets. Adapt budget to revenues (Cash In-Cash Out).
• Usually no formal business plan
Survival mode
Top ~1%
Next ~5%
Next ~20%
Source: 11 Goals & Associates; UEFA (2012)
Most clubs
29. 2828
Digital Business Model?
Factory of
players
“Lucky striker”
(prizes, trades, or
key investor)
Commercial
funds team
(wages & capex)
Survival mode
Digitally-enabled
Business Model?
D+Factory of
players
D+“Lucky striker”
(prizes, trades, or
key investor)
D+Commercial
funds team
(wages & capex)
D+Survival mode
How the new BM
would look like?
Strategic DT
Performance DT
30. 2929
What kind of Digital Transformation?
Strategic Digital Transformation in Football (SlideShare)
• Same Business Model, different processes
• Incremental innovation
• Seeking efficiency, but not always
• Low risk, medium return
• Suboptimal strategy, but creates value
• Ex.: Most large commercial banks such as BBVA or Grupo
Santander
Performance DT
Strategic DT
• New Business Model
• Disruptive innovation, but it does not have to affect the core
business if execution plan is well shaped
• Seeking revenue growth
• High risk, high return
• Optimal strategy, but not easy to execute
• Ex.: Netflix, Coursera (~Stanford), edX (MIT, Harvard)
31. 3030
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue: larger and growing
faster
5) Matchday revenue drivers: Stadium ownership, VIP
6) Broadcast revenue drivers: domestic league value and team distribution,
and success on international tournaments
7) Commercial: Big-ticket contracts (dependant on TV audience) are key.
Stadium naming rights will bring significant growth soon
8) Main cost driver is team wages. It determines (un)profitability
9) Business models: Survival->Factory->”Lucky”->Commercial-
>Digital?
32. 3131
Is the current model mature enough? Exhausted?
YoY growth rate by revenue source; World’s top football 20 teams of each year
-5%
0%
5%
10%
15%
20%
25%
30%
35%
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Matchday Broadcast Commercial Total
•Revenues growth rates are not only not maturing, but accelerating
•Growth is specially driven by Commercial
•Matchday is maturing
•The marginally decreasing rates until 08/09 are explained by the crisis
23,8%
14,2%
11,6%
3,6%
Source: Deloitte Football Money League; own analysis
33. 3232
YoY growth rate by revenue source; World’s top 4 teams (RM, MU, BM and FCB)
-5%
0%
5%
10%
15%
20%
25%
30%
35%
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14
Matchday Broadcast Commercial Total
•Taking only the 4 most “advanced” teams
we see no pattern of exhaustion
•Total revenues grow strong again after the
crisis, driven specially by Commercial
•Matchday is maturing
-0,7%
9,0%
9,9%
16,4%
Source: Deloitte Football Money League; own analysis
Is the current model mature enough? Exhausted?
34. 3333
Digital value creation
BU Sport
Cost center
Championships
BU Stadium
Profit/Inv. center
BU Commercial
Revenue/Profit center
BU Digital
Cost center?
Revenue center?
Fan base and
engagement
Revenue
Attribution model
Titles -> Revenue
Attribution model
Fans -> Revenue
Without an attribution
model someone could
even argue BU sport is
not a revenue
generating activity…
When externalities among BUs exist,
attribution models (Bayesian, Big Data,
etc.) should serve to understand
interrelations and to assign transfer
costs and revenues among BUs (BU’s
P&L; cost accounting).
Attribution model
Titles ->Fans
Attribution model
TV ->Commercial
35. 3434
Football: The rules of the Business
1) Football has social value, and business value too
2) The better players the team has (measured by market wage), the better the
team does on the pitch
3) Revenue drives long-term team’s performance
4) Commercial the most important source of revenue: larger and growing faster
5) Matchday revenue drivers: Stadium ownership, VIP
6) Broadcast revenue drivers: domestic league value and team distribution, and
success on international tournaments
7) Commercial: Big-ticket contracts (dependant on TV audience) are key.
Stadium naming rights will bring significant growth soon
8) Main cost driver is team wages. It determines (un)profitability
9) Business models: Survival->Factory->”Lucky”->Commercial->Digital?
10)Commercial Biz Model yet to grow, but Digital ready
to disrupt like Stadium, TV and Commercial did in the
past
36. •Strategic consulting services in technology and digital marketing for top executives
•We advise companies on digital transformation
Francisco Hernández
•MBA London Business School.
•IEP University of Chicago.
•11 years of digital experience.
•Ex Director Online Strategy Real
Madrid C.F.
•Other companies: ABN Amro,
Abengoa, McKinsey&Company.
•Professor at ESCP Europe.
•Lecturer in Europe, Latam and
Asia
•PWC: 10 e-Business talents in
Spain.
Sonia Fernández
•MBA Stanford.
•15 years of digital experience.
•Ex CEO Vindico Europe.
•Ex CEO Match.com Spain.
•Ex CEO MercadoLibre Spain.
•Other companies: Fon, Grupo
Prisa, 3i, Lehman Brothers.
•Professor at OBS-UB, EOI and MIB
•Lecturer at universities and in-
company training
•Author of two books on
networking and social networks
published in 2004 and 2001 franciscohm
francisco.hernandez@11goals.com | (+34) 605 58 66 55
soniafernandez
sonia.fernandez@11goals.com | (+34) 619 721 781