Headline Verdana BoldFOOTBALL PERSPECTIVEWhere are we? „How can we get as close as possible to BIG FIVE”Jesper Jørgensen, Martijn Van Rensch, Marcin Diakonowicz. September 2016

Footbal Perspective | September 2016Deloitte Poland 2

Number ONE sport

The Football LandscapeSetting up the Scene

Value created by unique customer loyalty

Attracting ever-increasing corporate interest

Embroiled in politics, fragmented ‘ownership’ of the game

Polarization between clubs and between leagues

Politically sexy SIZE DOES MATTER!

Footbal Perspective | September 2016Deloitte Poland 3

The Provocations!Setting up the Scene

Largely unproven ability to deliver!

Restricted access to and control over key assets (facilities, players and

brands)!

Undeveloped and unsophisticated - loss-making businesses!

Badly managed - autocratic Boards who cannot delegate and are unwilling to empower experts!

Often managed behind closed doors by the Chairman!

Mortgaging its future on sometimes uncertain

future revenue streams!

Sustainability is a problem!

The name of the game is not profitability, but

winning games and cups!

A lazy industry!

Footbal Perspective | September 2016Deloitte Poland 4

Digitalization

Key-drivers from a Business Perspective

Broadcasting rights

Development of revenue streams from

sponsors, stadiums and merchandise

Governing bodies and owners of the game

Branding of leagues, clubs and players

Globalization and polarization

EU's regulation of transfers Transfers and wage bill

On the sporting side philosophy, culture, organization and structure has great impact on the business.

Investor attraction (foreign investors)

Footbal Perspective | September 2016Deloitte Poland 5

Below a few observationsWhy football is a real different business that changes rapidly

Yes, of course …

• Sportive aspirations are the most important driver for the business model

• Level of scale and winning games are the real driver for strategic advantage or disadvantage

… but the football business has to change rapidly

• Less than 20% of the income is based on the matching day

• 90% of the expenses are fixed at the start of the competition

• Football is in fact a competitor in the leisure industry

• A football club has to make a real impact on society nowadays

• Expectations about the level of hospitality are increasing tremendously

• Experience is no longer only in the stadium and on television but also in a digital environment

Finding the right answers to these challenges requires a sharp and realistic ambition, focus on success factors and a dynamic strategic planning process

Footbal Perspective | September 2016Deloitte Poland 6

Incrementalism is a reason why continuous improvement stagnatesDynamic strategic planning process

Incremental planning process

Incrementalism: One reason why clubs stagnate

Dynamic strategic planning process

Focus: One reason why clubs grow

Time

Goa

l

Where weare now?

Actions taken in response

to circumstances

Where can we be next year?

Time

Goa

l

Actions driven by strategy

Where are we now?

Vision of where we need to be five years from now

Footbal Perspective | September 2016Deloitte Poland 7

Five success factors for inspirationA sharp and realistic ambition and aspiration is necessary

Strategy & Aspirations

Impact on Society

Integrity &

Leadership Business Maturity

Digital & Innovation

Focus on Talent

7

Impact on SocietyNot only a strong focus on media and politicians, but also a real impact on society. Stay continuously connected and have a clear purpose.

Integrity & LeadershipContinuity in the governance structure, including a board of directors with vision and integrity not only based on regulation but based on a clear purpose.

Business MaturityGood performance is based on a balanced organization and a maturity level that is required for the competitive market. More flexibility in the cost structure is necessary.

Digital & InnovationData analytics as catalyst for improving business and sport performances. Stimulate innovation. The experience will be more and more in an digital environment. Focus on seizing opportunities internationally.

Focus on TalentFocus on developing talent with commitment and the necessary competences and capabilities.

Footbal Perspective | September 2016Deloitte Poland 8

(mln EUR)Where does the money come from?

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

768 521 435 210 165

2337

731 9751099

628

1295

1140 643483

625

Matchday Broadcast Commercial

4400

23922053

1792

1418

118

5% YTY

-15% YTY

13%YTY

+17%YTY

-27%YTY

6% YTY

Footbal Perspective | September 2016Deloitte Poland 9

What we can do to be the part of the big five?

6% YTY