2007

2008

2009

2010

17.40
15.70
28.70
5.20
7.10
74.10

18.97
17.11
31.28
5.67
7.74
80.77

20.67
18.65
34.10
6.18
8.44
88.04

22.53
20.33
37.17
6.73
9.19
95.96

50.92
16.38
1.80
69.10

56.01
17.04
1.87
74.92

61.61
17.72
1.95
81.28

67.77
18.43
2.02
88.22

5.00
2.20
2.80
2.26
0.19
0.35

5.85
2.29
3.56
2.46
0.38
0.72

6.76
2.38
4.38
2.69
0.59
1.10

7.74
2.47
5.26
2.93
0.82
1.51

Capex
NWC
change (NWC)

3.30
-44.46
0.00

3.43
-48.46
-4.00

3.57
-52.82
-4.36

3.71
-57.58
-4.75

FCF
Terminal Value

0.72

5.17

6.02

6.94

0.72
118.59
10.50

5.17

6.02

6.94

Revenue

Attendance
Sponsorship
Broadcast
Merchandise
Other
Total
Opearting costs

Payroll
Stadium Operating Expenses
Other
Total
EBITDA
Depreciation
EBIT
Interest
Taxes
Net Income

NPV
Discount rate
Assumptions
Revenue growth until 2019
Long-term growth after 2019
Salary growth until 2019
Long-term growth after 2019
Long-term growth rate of everything else

9%
4%
10%
4%
4%

2011

2012

2013

2014

2015

2016

2017

2018

24.56
22.16
40.51
7.34
10.02
104.60

26.77
24.16
44.16
8.00
10.92
114.01

29.18
26.33
48.13
8.72
11.91
124.27

31.81
28.70
52.46
9.51
12.98
135.46

34.67
31.28
57.19
10.36
14.15
147.65

37.79
34.10
62.33
11.29
15.42
160.94

41.19
37.17
67.94
12.31
16.81
175.42

44.90
40.51
74.06
13.42
18.32
191.21

74.55
19.16
2.11
95.82

82.01
19.93
2.19
104.13

90.21
20.73
2.28
113.21

99.23
21.55
2.37
123.15

109.15
22.42
2.46
134.03

120.07
23.31
2.56
145.94

132.07
24.25
2.66
158.98

145.28
25.22
2.77
173.27

8.78
2.57
6.20
3.19
1.05
1.96

9.89
2.68
7.21
3.48
1.30
2.43

11.06
2.78
8.28
3.79
1.57
2.92

12.31
2.90
9.41
4.13
1.85
3.43

13.62
3.01
10.61
4.50
2.13
3.98

14.99
3.13
11.86
4.91
2.43
4.52

16.44
3.26
13.18
5.35
2.74
5.09

17.94
3.39
14.55
5.83
3.05
5.67

3.86
-62.76
-5.18

4.01
-68.41
-5.65

4.18
-74.56
-6.16

4.34
-81.27
-6.71

4.52
-88.59
-7.31

4.70
-96.56
-7.97

4.88
-105.25
-8.69

5.08
-114.73
-9.47

7.93

9.00

10.15

11.38

12.70

14.12

15.63

17.24

7.93

9.00

10.15

11.38

12.70

14.12

15.63

17.24

2019

2020

48.94
44.16
80.72
14.63
19.97
208.42

50.90
45.93
83.95
15.21
20.77
216.76

159.81
26.22
2.88
188.92

166.20
27.27
3.00
196.47

19.50
3.52
15.98
6.36
3.37
6.25

20.28
3.66
16.62
6.61
3.50
6.51

5.28
-125.05
-10.33

5.49
-130.05
-5.00

18.95

13.97
223.57
237.55

18.95

2.579538

Unlevered Beta
COE

1.184969
10.5

Discount factor

Adding a stadium:

2007
1

2009
0.82

125

125

0.00
0.00
0.00
125.00

0.00
0.00
0.00
125.00

-125.00
-113.12

-125.00
-102.37

-72.46

Additional Revenues
Costs
Stadium capex
Depreciation
Stadium operationg costs
Total opearting costs
Taxes
Change in Working Capital
Total cash outlay
Cash Flow
Free Cash Flow
Discounted back to 2007
Assumptions
Revenue growth
long-term growth
Salary growth
Long-term growth of everything else
Net Working Capital / Revenue ratio
Tax rate
Discount rate

2008
0.90

9.0%
4.0%
10.0%
4.0%
-60.0%
35.0%
10.50%

2010
0.74

2011
0.67

2012
0.61

2013
0.55

2014
0.50

2015
0.45

2016
0.41

13.08

14.26

15.54

16.94

18.46

20.12

21.93

25
2.58
27.58
-5.08
-7.85
-5.27

25
2.68
27.68
-4.70
-8.55
-5.87

25
2.79
27.79
-4.29
-9.32
-6.53

25
2.90
27.90
-3.84
-10.16
-7.26

25
3.02
28.02
-3.35
-11.08
-8.06

25
3.14
28.14
-2.81
-12.07
-8.93

25
3.26
28.26
-2.22
-13.16
-9.90

18.34
13.60

20.12
13.50

22.07
13.40

24.20
13.29

26.52
13.18

29.06
13.07

31.83
12.96

2017
0.37

2018
0.33

2019
0.30

2020
0.27

23.91

26.06

28.40

29.54

25
3.40
28.40
-1.57
-14.34
-10.95

25
3.53
28.53
-0.87
-15.64
-12.10

25
3.67
28.67
-0.09
-17.04
-13.37

3.82
3.82
9.00
-17.72
-13.90

34.86
12.84

38.16
12.72

41.77
12.61

43.44
11.86

Discount factor

Adding a player

2007
1

2009
0.82

5.17

5.64

2.50
20.00
22.50
-3.10
-6.07

2.75
2.75
-3.38
1.01

-8.16
-7.39

5.26
4.31

28.86

Revenue
Costs
Salary
Transfer fee
Total opearting costs
Change in Working Capital
Taxes
Cash Flow
Free Cash Flow
Discounted back to 2007

Assumptions
Revenue growth
long-term growth
Salary growth
Long-term growth of everything else
Net Working Capital / Revenue ratio
Tax rate
Discount rate

2008
0.90

9.0%
4.0%
10.0%
4.0%
-60.0%
35.0%
10.50%

2010
0.74

2011
0.67

2012
0.61

2013
0.55

2014
0.50

2015
0.45

2016
0.41

6.14

6.70

7.30

7.95

8.67

9.45

10.30

3.03

3.33

3.66

4.03

4.43

4.87

5.36

3.03
-3.69
1.09

3.33
-4.02
1.18

3.66
-4.38
1.27

4.03
-4.77
1.37

4.43
-5.20
1.48

4.87
-5.67
1.60

5.36
-6.18
1.73

5.71
4.23

6.21
4.16

6.74
4.09

7.33
4.02

7.96
3.96

8.65
3.89

9.39
3.82

2017
0.37

2018
0.33

2019
0.30

2020
0.27

5.89
-6.74
1.87

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

10.20
3.76

0.00
0.00

0.00
0.00

0.00
0.00

11.23
5.89

Discount factor

(1) Adding a stadium:

2007
1

125

125

0.00
0.00
0.00
125.00

0.00
0.00
0.00
125.00

-125.00
-113.12

-125.00
-102.37

5.17

5.64

2.50
20.00
22.50
-3.10
-6.07

2.75
2.75
-3.38
1.01

-8.16
-7.39

5.26
4.31

0.00
1
5.17
5.17

0.00
1
5.64
5.64

125

125

2.50
20.00
22.50
-6.07
-3.10
144.40

2.75
2.75
1.01
-3.38
124.37

-139.23
-126.00

-118.73
-97.24

68.87

Revenues
from stadium
synergy
from player
Total revenues
Costs
Stadium capex
Depreciation
stadium operationg costs
Salary
Transfer fee
Total opearting costs
Taxes
Change in Working Capital
Total cash outlay
Cash Flow
Free Cash Flow
Discounted back to 2007

Assumptions
Revenue growth

28.86

Revenue
Costs
Salary
Transfer fee
Total opearting costs
Change in Working Capital
Taxes
Cash Flow
Free Cash Flow
Discounted back to 2007

(3) Adding a stadium and a player

2009
0.82

-72.46

Additional Revenues
Costs
Stadium capex
Depreciation
Stadium operationg costs
Total opearting costs
Taxes
Change in Working Capital
Total cash outlay
Cash Flow
Free Cash Flow
Discounted back to 2007

(2) Adding a player

2008
0.90

9.0%

long-term growth
Salary growth
Long-term growth of everything else
Net Working Capital / Revenue ratio
Tax rate
Discount rate

4.0%
10.0%
4.0%
-60.0%
35.0%
10.50%

2010
0.74

2011
0.67

2012
0.61

2013
0.55

2014
0.50

2015
0.45

2016
0.41

13.08

14.26

15.54

16.94

18.46

20.12

21.93

25
2.58
27.58
-5.08
-7.85
-5.27

25
2.68
27.68
-4.70
-8.55
-5.87

25
2.79
27.79
-4.29
-9.32
-6.53

25
2.90
27.90
-3.84
-10.16
-7.26

25
3.02
28.02
-3.35
-11.08
-8.06

25
3.14
28.14
-2.81
-12.07
-8.93

25
3.26
28.26
-2.22
-13.16
-9.90

18.34
13.60

20.12
13.50

22.07
13.40

24.20
13.29

26.52
13.18

29.06
13.07

31.83
12.96

6.14

6.70

7.30

7.95

8.67

9.45

10.30

3.03

3.33

3.66

4.03

4.43

4.87

5.36

3.03
-3.69
1.09

3.33
-4.02
1.18

3.66
-4.38
1.27

4.03
-4.77
1.37

4.43
-5.20
1.48

4.87
-5.67
1.60

5.36
-6.18
1.73

5.71
4.23

6.21
4.16

6.74
4.09

7.33
4.02

7.96
3.96

8.65
3.89

9.39
3.82

13.08
3
18.43
31.51

14.26
3
20.09
34.34

15.54
3
21.89
37.43

16.94
3
23.86
40.80

18.46
3
26.01
44.47

20.12
3
28.35
48.48

21.93
3
30.90
52.84

25
2.58
3.03

25
2.68
3.33

25
2.79
3.66

25
2.90
4.03

25
3.02
4.43

25
3.14
4.87

25
3.26
5.36

30.61
0.32
-18.90
-13.30

31.01
1.17
-20.60
-14.59

31.45
2.09
-22.46
-16.01

31.93
3.11
-24.48
-17.55

32.45
4.21
-26.68
-19.24

33.01
5.41
-29.09
-21.07

33.62
6.72
-31.70
-23.08

44.80
33.21

48.93
32.82

53.44
32.44

58.35
32.05

63.71
31.67

69.55
31.29

75.92
30.91

-0.22037787

2017
0.37

2018
0.33

2019
0.30

2020
0.27

23.91

26.06

28.40

29.54

25
3.40
28.40
-1.57
-14.34
-10.95

25
3.53
28.53
-0.87
-15.64
-12.10

25
3.67
28.67
-0.09
-17.04
-13.37

3.82
3.82
9.00
-17.72
-13.91

34.86
12.84

38.16
12.73

41.77
12.61

43.45
11.86

5.89
-6.74
1.87

0.00
0.00
0.00

0.00
0.00
0.00

0.00
0.00
0.00

10.20
3.76

0.00
0.00

0.00
0.00

0.00
0.00

23.91
3
33.69
57.59

26.06

28.40

29.54

26.06

28.40

29.54

25
3.40
5.89

25
3.53

25
3.67

3.82

34.29
8.16
-34.56
-25.27

28.53
-0.87
-15.64
-12.10

28.67
-0.09
-17.04
-13.37

3.82
9.00
-17.72
-13.91

82.86
30.53

38.16
12.73

41.77
12.61

43.45
11.86

11.23
5.89

Team
Manchester United
Arsenal
Chelsea
Liverpool
New castle United
Tottenham Hotspur
Everton
Aston Villa

EV

Net Debt/EV
Revenue Operating Income
934
0.84
169
50
588
0.53
134
11
345
0.28
154
-20
291
0.18
123
20
167
0.46
87
6
156
0.12
75
5
106
0.32
58
-8
90
0.16
50
-11

90

80
f(x) = 0.67521857
70
60
50
40
30
20
10

-10

Avg Net Goal Avg Points New Avg Net Goal

Avg Points
90
80
f(x) = 0.6752185753x + 51.6225670059
70
60
50
40
30
20
10
0

10

20

30

Increment

5.17

30

40

50