Tottenham Hotspur PLC Essay
The four key sources of earnings for the team include the range of fans attending the match, the support rights it receives from the other companies, the sale of club merchandise and its broadcast rights sold to television channels. By building a new arena, which has nearly cost of two hundred fifity million over the next couple of years, Tottenham hopes to increase the current capacity of 36500 individuals to 60000 enthusiasts per match. This is approximated to increase the revenues through attendance by simply 40 percent and substantial merchandise deal as well. The club also plans on buying better practice facility and better players, thus elevating the odds of winning complements.
This would not only increase the income from the complements but also increase the sponsorship amounts by 20 percent simultaneously hiking the demandable cost for broadcast rights. The collective rise in revenue is definitely estimated being around 9 percent. 2 . Daniel Garnishment and Paul Lewis had been former lovers at ENIC from 2001 to 2007 and once ENIC had a huge majority in Tottenham Hotspur, in early 08 Daniel Garnishment decides to generate this major change in the club. He further went on to claim it is not just about the money but a long term prosperity of the club.
We must yet , consider the fact that he previously to his advantage a previous experience managing a Scottish Football team called Ranger 3. The magnitude of risk posed by the assumptions made by Garnishment must also be considered to judge whether or not the investment is definitely profitable. some. A quantitative analysis from the investment like the computation of varied factors like the Cost of Capital, NPV, IRR, DCF analysis, etc can easily point towards right way 5. Simply by calculating the percentage of games won during 2004 to 2007 and comparing that to the market reaction on the shares of Tottenham Hotspur we can generate decision by what factors adversely affected the industry; whether it absolutely was an external subject or a thing related to Tottenham hotspur alone.
Assumptions 1 . The forecasts made about the future regarding revenue with regards to the predicted pumpiing of the nation. 2 . Operating expenses are based on historical data of various other clubs. So , we need to examine reasons why that may not project the right picture of the future pertaining to Tottenham three or more.
Changing players may not automatically improve efficiency of the crew and hence might not lead to as much wins as you expected and hence the growth in income through sponsors and goods may be stunted.
- Category: Corporation
- Words: 425
- Pages: 2
- Project Type: Essay