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
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