Paris Saint-Germain Football

Club Revenue Analysis

Chicago Booth Consulting Recommendations
Vishnu Kamath, Shane Nelson, Victor Perez, Mike Pintar

Overview
Team Snapshot
Match Day Revenue
Situational Analysis
Pricing and Ticket Strategy Analysis
Achieving Elite Status
Recommendations and Next Steps

History
Failure to success story, wining two national cups, and other great Cups
Early 2000s move to a losing record
Acquisition from Canal + to QSI
Great fan base eager to see future success
Nearly doubled season ticket holders from 16,000 to 30,000
Important Facts:
Valued (2012) at 100M Euro
Neighboring Population: 10 Million (no competition)
Stadium (Parc de Princes) undergoing luxury renovation expected to complete
in 2016
In Sept. 2009, Paris Mayor announced 2016 UEFA Euro Cup to be played at Parc
de Princes

Opportunities
Add other events at stadium to get premium
customers
Board Struggles/Infighting
Turnover
Financial Losses
Stadium
Attendance
Online Sales

Match Day Revenue Aspirations

Ranking

Club

Earning (Million Euros)

Real Madrid

129.1

Manchester United

122.4

Arsenal

114.7

Barcelona

97.8

Paris Saint-Germain

18.1

Situational Analysis
Attendance has been generally declining, but beginning to rebound after the
implementation of new rules to reduce Hooliganism
Attendance 2000/01 to 2011/12
50,000

45,000

40,000

35,000

30,000

25,000

20,000
2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

Pricing/Ticket Strategies

Current Pricing
Strategy

Raise Ticket Prices Online Sales

Dynamic Pricing

Expected
Attendance

30,000

25,000

35,000

45,000

Expected
Matchday Revenue
per Person

32.5 Euros/per game

42.5 Euros/per game

40 Euros/per game

40 Euros/per game

Benefits

Fill Excess Capacity

Reduce Hooliganism
Attracts higher-end
customers

Accessibility
Increases ticket presales

Risks

High number of unfilled

stadium seats

Potential reduction in
attendance
Increased price
counteracted by
reduction in sales

Adding
infrastructure to
support ecommerce

Full stadium
Attracts marketing/
sponsorship
Increase total revenue
Potential lower revenue
per person
Hooliganism on cheap
tickets

Becoming a world-class team

Currently, #1 team in France
21M Euro Spend 2011

More Wins

Better
Players

More
Sponsorship,
higher
league
earnings,
Increased
attendance

Increased
Revenue

Pursuing World Class Status

Pros

Cons

Higher Match Day Revenue

Player Costs

Higher Commercial Revenue

Coach Costs

Global Brand Awareness

Success Not Guaranteed

UEFA Champions Revenue

Years to achieve

10

World Class Spend Comparison

Club

Spend (Million Euros)

Chelsea

283.6

Manchester City

234.3

PSG

211

11

Current Revenue Mix

12

Current Match Day Per Game

Revenue Mix
Average Revenue is 32.5 Euros/person
Low - 50% of market purchases ticket only 10 Euro / person
Mid - 35% of market purchases ticket and extra spend 20 Euro / person
High - 15% of market purchases ticket and extra spend 136 Euro / person
Total Match Day Revenue - < 1 Million Euro / game
Indicates need to penetrate the elite market

Current Match Day Revenue and

Competitor Comparison

13

Current PSG Revenue (Euros)

43000000

Match Day Revenue

currently provides an
average of < $1MM/day,
which is significantly less
than that of
elite clubs with a Match
Day Revenue of $5-6.5MM

18100000

28000000

5000000

10000000

15000000

20000000
French TV

25000000
Match Day

30000000

35000000

Commercial Revenue

40000000

45000000

50000000

14

How does PSG join the Elite?

Penetrating High net-worth market

15

Utilize renovation to add 7000 box seats for the high net-worth market (i.e.
executives)
60% capacity (4200 box seats) on average per game and at a price of
$500 yields:
Match Day Revenue (Euros)

58399000

18100000

10000000

20000000

30000000
Future PSG

40000000
Current PSG

50000000

60000000

70000000

16

New Revenue Mix Post Renovation

Future PSG Revenue

22%
33%

Commercial Revenue
Match Day
French TV
45%

17

Moving Forward and the Next Steps

Short term:
Pursue online ticket pre-sales
Continue current investment amount in players

Long term:
Add 7,000 luxury box seats during renovations to penetrate high-end market
Maintain pricing structure on current tiers
More team victories to enhance brand