Hints the revenue a football industry generates in a Football rich culture. Benefits include - Cutting hospital bills!

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

4. • "Football isn't a matter of life and death - its
much more important than that!" Bill Shankly

5. • “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

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

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

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

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

10. Size of the Industry

11. Size of Football industry
• Trends of Turnover
• Trends vary based upon “On pitch performance”
» Sponsorship bonuses
3000
2500
2000
1500
1000
500 Turnover 2010
0 turnover 2011

12. Market share

13. Profitability Analysis

14. Profitability Analysis – ManU

15. Profitability Analysis - ManU

16. Political Environment
• Governing bodies

17. Economic environment
• Sponsors
• Owners
• Stock Markets

18. Social Environment
• Fans / Supporters
• Press
• Culture

19. Technological Environment
• Media
• Broadcasting Partners

20. PEST analysis
• Financial Fairplay
Political • Squad size restriction
• Owner’s debts
Economic • Inflation
• Hooliganism
Social • Gossips
• Media
Technological • Broadcasters

21. Porter’s Five Forces

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

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

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

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

26. • 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

27. Resources
1.Wikipedia
2.Footballeconomy.com
3.Footballfinance.com
4.Sun magazine
5.Google
6.Deloitte Football Money
League

28. Questions?

29. Thank you!