Tottenham Pro Forma Income Statement (millions of pounds)

Current Fore
0 1 2 3 4 5
2007 2008 2009 2010 2011 2012
Revenue
Attendance 17.4 18.97 20.67 22.53 24.56 26.77
Sponsorship 15.7 17.11. 18.65 20.33 22.16 24.16
Broadcast 28.7 31.28 34.1 37.17 40.51 44.16
Merchandise 5.2 5.67 6.18 6.73 7.34 8
Other 7.1 7.74 8.44 9.19 10.02 10.92
Total Revenue 74.1 80.77 88.04 95.96 104.6 114.01

Operating costs
Payroll 50.92 56.01 61.62 67.78 74.56 82.01
Stadium Operating Expenses 16.38 17.04 17.72 18.43 19.16 19.93
Other 1.8 1.87 1.95 2.02 2.11 2.19
Total Operating costs 69.1 74.92 81.28 88.23 95.82 104.13

EBITDA (Operating Income) 5 5.85 6.76 7.73 8.77 9.88

Depreciation 2.2 2.29 2.38 2.47 2.57 2.68
EBIT 2.8 3.56 4.38 5.26 6.2 7.21
Interest 2.26 2.46 2.69 2.93 3.19 3.48
Taxes 0.19 0.38 0.59 0.82 1.05 1.3
Net Income 0.35 0.71 1.1 1.52 1.96 2.42

Cashflow projection - Current Opearton -millionn of pound

0 1 2 3 4 5
2007 2008 2009 2010 2011 2012
Sales Revenue 74.1 80.77 88.04 95.96 104.6 114.01
Operating Cost -69.1 -74.92 -81.28 -88.23 -95.82 -104.13
Tax -0.19 -0.38 -0.59 -0.82 -1.05 -1.3
Investment cost stadium -125 -125
Loan 125 125
Pay back the loan
Capex & Depreciation growth 4%
Maintenance capital expenditure 3.30 3.43 3.57 3.71 3.86 4.01
Depreciation related to these capex 2.2 2.29 2.38 2.47 2.57 2.68
Net Investments -1.10 -1.14 -1.19 -1.24 -1.29 -1.34

Total current assets 48.07 52.40 57.11 62.25 67.85 73.96

Total current liabilities 64.4 70.20 76.51 83.40 90.91 99.09
Working Capital -16.33 -17.80 -19.40 -21.15 -23.05 -25.13
Change in Working capital -1.47 -1.60 -1.75 -1.90 -2.07
Net Cashflow 3.71 2.86 3.38 3.93 4.54 5.17
Present Value
Opening Balance 26.29 29.15 32.52 36.45 40.99
Ending Cash Balance 26.29 29.15 32.52 36.45 40.99 46.16

Cost of Capital 0.1011

1 1.101068 1.212351 1.33488 1.469794 1.618343
Discount Factor 1 0.908209 0.824844 0.749131 0.680367 0.617916
Present Value 26.29 26.47094 26.82769 27.30662 27.88889 28.52177
Net Present Value 386.8624 136.8624
 Forecast
6 7 8 9 10 11 12 13
2013 2014 2015 2016 2017 2018 2019 2020

29.18 31.81 34.67 37.79 41.19 44.9 48.94 50.9

26.33 28.7 31.28 34.1 37.17 40.51 44.16 45.93
48.13 52.46 57.19 62.33 67.94 74.06 80.72 83.95
8.72 9.51 10.36 11.29 12.31 13.42 14.63 15,21
11.91 12.98 14.15 15.42 16.81 18.32 19.97 20.77
124.27 135.46 147.65 160.94 175.42 191.21 208.42 216.76

90.21 99.23 109.16 120.07 132.08 145.29 159.82 166.21

20.73 21.55 22.42 23.31 24.25 25.22 26.22 27.27
2.28 2.37 2.46 2.56 2.66 2.77 2.88 3
113.22 123.16 134.04 145.95 158.99 173.28 188.92 196.48

11.06 12.3 13.61 14.99 16.43 17.93 19.49 20.27

2.78 2.9 3.01 3 3.26 3.39 3.52 3.66
8.27 9.41 10.6 11.86 13.17 14.55 15.97 16.61
3.79 4.13 4.5 4.91 5.35 5.83 6.36 6.61
1.57 1.85 2.13 2.43 2.74 3.05 3.37 3.5
2.91 3.43 3.96 4.52 5.09 5.66 6.25 6.5

6 7 8 9 10 11 12 13
2013 2014 2015 2016 2017 2018 2019 2020
124.27 135.46 147.65 160.94 175.42 191.21 208.42 216.76
-113.22 -123.16 -134.04 -145.95 -158.99 -173.28 -188.92 -196.48
-1.57 -1.85 -2.13 -2.43 -2.74 -3.05 -3.37 -3.5

4.18 4.34 4.52 4.70 4.88 5.08 5.28 5.49

2.78 2.90 3.01 3.13 3.26 3.39 3.52 3.66
-1.39 -1.45 -1.51 -1.57 -1.63 -1.69 -1.76 -1.83

80.62 87.87 95.78 104.40 113.80 124.04 135.20 140.61

108.01 117.73 128.32 139.87 152.46 166.18 181.14 188.38
-27.39 -29.85 -32.54 -35.47 -38.66 -42.14 -45.93 -47.77
-2.26 -2.46 -2.69 -2.93 -3.19 -3.48 -3.79 -1.84
5.83 6.54 7.29 8.07 8.87 9.71 10.58 13.11
 46.16 51.98 58.52 65.81 73.88 82.75 92.45 103.03
51.98 58.52 65.81 73.88 82.75 92.45 103.03 116.14

1.781905 1.961999 2.160294 2.378631 2.619034 2.883734 3.175187 3.496097

0.561197 0.509684 0.4629 0.42041 0.38182 0.346773 0.314942 0.286033
29.17373 29.82798 30.46362 31.05832 31.59408 32.06026 32.44838 33.22015
 Market Information
20-Year Risk Free Rate 4.57%
Tottenham Equity Beta 1.29
Market Risk Premium 5.00%
Inflation rate 2.50%
Company Tax Rate 35.00%
Cost of equity 11.02%
Cost of debt 5.25%
Weight on equity 88.00%
Weight on debt 12.00%
WACC 10.11%
Macro-economic factors risk + retail store loss 0.20%
Lost fans/ club reputation 0.50%

Tottenham Balance Sheet (£ mn)

Current assets:
Cash and equivalents 26.29
Investments, available for sale 0.63
Inventory - Merchandise 1.17
Accounts Receivable 19.99
Total current assets 48.07
Property and equipment, net 55.78
Intangible assets, net 49.35
Total assets 153.20
Liabilities and Stockholder Equity
Current liabilities: Accounts payable 64.40
Long-term debt and deferred interest, net of current 43.08

Total liabilities 107.48

Total stockholders' equity 45.73
Total liabilities and stockholders' equity 153.20