PARIS ST-GERMAIN

JMSB CONSULTING ELLIOTT ALTILIA MATTHEW BECK SIMON FOUCHER LYSIANE PROULX

HOW TO BOOST REVENUE TO BE ABLE TO CREATE A

FOOTBALL CLUB CAPABLE OF WINNING CHAMPIONS

LEAGUE WITHIN 5 YEARS?

Fans Quality? Team Performance?

Fans Quantity?

Club Identity? Broadcasting?

3-STEPS PLAN TO CONTINUOUS UEFA PRESENCE

•  Invest in the “farming model” •  Maintain investment in facility and

players Performance

RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

MASSIVE RETURN FOR A COMPETITIVE FOOTBALL TEAM

•  ä Rev per client (boxes, corporate ticket team, season tickets)

•  ä Volume (family tickets, packages, new image marketing campaign)

ä in stadium revenue

•  Sport5: marketing, sponsorship, international •  Al-Jazeera partnership •  Mobile broadcast

Broadcasting and Int’l Image

Investment: 143M €

5 YEARS

770% increase in match-day revenues

ä  brand equity ä  attendance

KEY FINDINGS

MULTIPLE SOURCES OF REVENUE FOR CLUB FINANCING

Ticketing

Merchandising

Broadcasting Advanced Deals

In Stadium Media

RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

ALL RELIANT ON HAVING A STRONG FOOTBALL CLUB

Sponsorship

Hospitality& Events

SportFive

THE SUPPLY OF FOOTBALL STARS IS THE BIGGEST LIMIT

7,422 Clubs in France

20 person roster

EUR284M single team spending

RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

PAYROLL NOW NEEDS TO BE MAINTAINED AT COMPETITIVE LEVELS

Current Payroll: EUR211M

Match Day Revenue

Ticketing

Merchandising

Advance Sales

INCREASING MATCH DAY REVENUE WILL BE ESSENTIAL RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

THE MARKET IS WILLING AND ABLE TO FINANCE SUCCESS

10M Fans in the area

No competition

Highest revenue per fan EUR618

BROADCASTING SUCCESS IS SUPPORTED BY TWO PILLARS RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

A COMPETITIVE TEAM WILL ALLOW FOR COMPETITIVE BROADCASTING

•  Very strong in Paris •  “A great PSG or get lost”

Brand Equity

•  62% attendance •  10M fan market

Stadium Attendance

Key Factors What PSG will do

Leverage Al-Jazeera

Connections

Build a competitive team with new

structure

Hooliganism Increase competiveness and price will reduce it

PSG HAS 2 PILLARS COVERED

Supportive Fans

Team Spending

Player acquisition

system

No competition

Media Connections

Financial Revenue

RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

NOW IS THE TIME BUILD A LONG-TERM FOUNDATION

Market is ready to support an elite

team

Spending and sources of

revenue are there

Will need to be improved to retain

competitive

FINANCIALS

AVERAGE ATTENDANCE IS 62% RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

FILL THE STADIUM BEFORE SPENDING 80M € TO EXPAND IT

85% 86%

76% 62%

70% 72% 75%

53% 50%

91%

0% 20% 40% 60% 80% 100%

Olympique Marseille Olympique Lyonais

Racing Club Lens PSG FC

AS St Etienne FC Girondais Stade Renais Toulouse FC

Montpellier FC LOSC

10M PEOPLE, PARIS HAS HIGH POTENTIAL INTERNATIONAL RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

NOT YET AT PAR WITH THE LEAGUE

9.1% 10.0%

6.1% 6.8%

12.4%

0.0% 2.0% 4.0% 6.0% 8.0%

10.0% 12.0% 14.0%

Total Revenues

Commercials Ticketing Sponserships Broadcasting

Share of league revenues

Share of revenue Average target

REVENUE PER FAN AT € 618 RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

# 1 IN THE LEAGUE!

€ 501 € 536 € 591 € 618

€ 235 € 304 € 269

€ 116 € 218

€ 335

€ - € 100 € 200 € 300 € 400 € 500 € 600 € 700

MATCH DAY REVENUES (M € ) RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

STILL HAVE ROOM TO GROW TO BE #1 IN THE LEAGUE

€ 26

€ 19 € 19 € 18

€ 6 € 8 € 6 € 2 € 4 € 6

€ - € 5

€ 10 € 15 € 20 € 25 € 30

Chart Title

MATCH DAY REVENUES – 5-7 X TOO SMALL RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

NOT YET COMPETING WITH THE ELITE

€ 129 € 122

€ 115

€ 98

€ 18

€ -

€ 20

€ 40

€ 60

€ 80

€ 100

€ 120

€ 140

Real Madrid Manchester United Arsenal Barcelona PSG FC

Match Day Rev (M EUR)

REVENUES PER FAN (RPF) 3.5 X SMALLER THAN ELITE TEAMS RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

STILL HAVE POTENTIAL TO GROW RPF BY 350%

€ 2,152 € 2,040

€ 1,639

€ 1,223

€ 618

€ -

€ 500

€ 1,000

€ 1,500

€ 2,000

€ 2,500

Real Madrid Manchester United Arsenal Barcelona PSG FC

RPF

DETAILS ON REVENUES PER FAN RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

POTENTIAL TO INCREASE TICKET PRICES AND CONSUMPTION

Avg Season RPF   €618  

Games per season   19  

Avg RPF / Game   €33   € 20 € 5

€ 8

Ticket Concession Merchandize

ALTERNATIVES

SITUATIONAL SYNOPSIS

Market Broadcasting Revenues

Increasing Popularity of Soccer

Growing Internationally Mobile & Online Growing

Core Competency

Loyal Fan Base Huge Potential Market

Strategy

High team performance

RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

PSG HAS POTENTIAL TO BECOME INTERNATIONAL SOCCER POWER

SITUATIONAL SYNOPSIS RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

UEFA Competitiveness

Broadcasting Trends

Match Day Revenues

Fan Acceptance

Time

Decision Criteria Fill Stadium

Maintain

Increases Slightly

Maintains

No Change

No Change

Long-Term Farm System Investment

Long-Term Increase

Long-Term Maintain

Long-Term Maintain

Long-Term Growth

Too Slow

New Immediate Performance

Base Approach

International Star

Local & International

Increase Immediately

New & Old

Immediate

RISKS & MITIGATIONS RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

Poor Team Performance

Maintain Payroll and Acquire new Talent

Farm System & Acquisition of French

Amateur Team

Corporate Sales too

Slow Break Corporate

Suites & Auction Seats Lower Prices and Sell

in Bulk

New Prices Alienates

Fans

Marketing Plan Geared Towards Fan

Loyalty

Focus on Growing International Fans

Sell Tickets to

Competitor Fan Base

Risks Mitigations Contingencies

IMPLEMENTATION

5 YEAR TIMELINE RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

PSG CAN BECOME A TOP BRAND & UEFA COMPETITOR IN 5 YEARS

June 2012 June 2013 June 2014 June 2015 June 2016

Sustain Performance

New Stadium Project

Sport5

ä  Brand Positioning

Per

form

ance

S

tadi

um R

ev

Imag

e &

B

road

cast

Invest in farm system

Maintain training facility & elites players

ä  Corporate & boxes sales (new sales teams) Adjust Prices Adjust Seat

Prices

Intl Team PR campaign

Renew Sponsorship

Mobile partnership

SUSTAIN TEAM PERFORMANCE RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

THE TEAM PERFORMANCE IS AT THE CORE OF LONG-TERM SUCCESS

Invest in scouting, on par with top EU clubs

Follow the FC Barcelona Model

“farm system”

30 scouts in major international footbal

Consider buying promising amateur

teams

Maintain training and team player standards

Offer premium training environment and staff to players

Maintain salary at competitive level

INCREASE STADIUM REVENUES RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

THE REVENUE MIX RELIES ON PREMIUM CLIENTS AND LOYAL FANS

ä In Stadium revenues

ä Revenue per client

ä Prices for 20 to 30€ for regular tickets

Hire larger corporate sales team and heavily promote hospitality boxes (30 corporate boxes) and season tickets

ä Client volume

Launch 10€ family tickets (Promote peaceful stadium policy)

Promote pre-paid “subway + ticket + food packages”

Promote PSG Brand – May 2012 Campaign

ADJUST BRAND POSITIONING RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

THE TIMING IS OPTIMAL TO ADJUST POSITIONING

Target Market Pre-2012

Loyal Paris Fans One-time visitors

Larger Target Market

Loyal Fans Families

Premium Client International Audience

New Owner

New Sporting Dir.

New Players

Stadium Safety

60M € Repositioning Campaign CAMPAIGN THEME

Paris Saint-Germain is ready to move into the Elite class of super clubs “Dream bigger with Paris Saint-Germain”

INTEGRATED MARKETING CAMPAIGN TO ADJUST POSITIONING RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

THE TIMING IS OPTIMAL TO ADJUST POSITIONING

•  Billboards •  Radio & TV Ads •  Corporate Packages

TRADITIONAL

•  Digital marketing plan •  Mobile broadcasting ONLINE

•  Guerilla Marketing •  Jersey Distribution •  Corpo events with new players

FIELD

60M € Campaign targeting both loyal fans, new fans and premium clients

INTERNATIONAL IMAGE AND BROADCASTING IS KEY RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

MEDIUM-TERM REVENUES OPPORTUNITY

Leverage Sport5 for marketing, broadcasting and international development (International PR campaign)

Invest in paid mobile app and online for fan base, in partnership with broadcasters

Leverage Al-Jazeera connection to increase international fanbase and broadcasting opportunities

Renegotiate jersey sponsorship with Nike and Fly Emirates, leveraging improved brand

THE 3-PILLAR STRATEGY RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

PSG HAS THE POTENTIAL TO BECOME AN ELITE TEAM

PERFORMANCE

IN-STADIUM REVENUES

PSG

INTERNATIONAL VISIBILITY &

BROADCASTING

Investment: $143M €

5 YEARS

770% increase in

match-day revenues ä  brand

equity ä  attendance

FINANCIAL PROJECTION

DETAILS ON SPENDING RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

143M € INVESTMENT

Spend (M €)  

Farm System   € 3  

New Stadium   € 80  

Brand Positionning   € 20  

PR Campaign   € 20  Mobile Platform Development   € 20  

Total Spend   € 143  

ITEMIZED INCREMENTAL REVENUES RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

INCREASE OF 770% IN TERMS OF REVENUES/GAME

Cost Qty Revenue/GameCost Qty Revenue/GameAvg  Ticket  Price 20€                                     29,317 586,340€                 30€                                     48,600 1,458,000€                  Concession 5€                                           29,317 146,585€                 10€                                     48,600 486,000€                        Merchandize 8€                                           29,317 219,878€                 15€                                     48,600 729,000€                        Corp  Box -­‐€                                   -­‐€                                   900€                                 30 27,000€                              Mobile  App -­‐€                                   -­‐€                                   5€                                           1,000,000 5,000,000€                  

TOTAL 952,803€                 TOTAL 7,700,000€                  

Before After

IMPACT ON REVENUE PER FAN (RPF) RECOMMENDATION ANALYSIS FINANCIALS ALTERNATIVES IMPLEMENTATION

POTENTIAL TO MATCHUP WITH THE ELITE TEAMS

Before   After  

Revenue/Game   €952,803   €5,200,000  Season Revenues   €18,103,248   €98,800,000  

RPF   €618   €2,033  

FOLLOWING THE 3-STEP PLAN, THE BIG DREAM OF PSG FANS

WILL BECOME REALITY