PE Firms - Football Teams
How do you PE firms value the viability of a soccer team’s core business?
How do you PE firms value the viability of a soccer team’s core business?
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Maybe like a media business. Generally they pay the players/coaches and teams for their “content”. Then they sell people the right to watch that content effectively. Just one idea. Prob other ways to value a soccer business but I think that may be a common one. So if a media business, the same way they would value any other media biz
I would look at IPs from public clubs like Manchester United for detail on any unique concepts. For example players are seen as capex and then amortized on the balance sheet over the term of their contract
https://ir.manutd.com/~/media/Files/M/Manutd-IR/events-and-presentation…
Thanks for sharing this :)
I will provide a somewhat thorough answer to this tomorrow - posting now so I don't forget!
They'll probably be more thorough answers but player fees are indeed amortized. Most revenue for a big football club comes from commercial deals (stadium and kit sponsorships, partnerships, etc.), TV revenue, prize money, match day gate receipts, and player sales depending on the club.
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