Abstract
The chapter treats practical problems related to the valuation of the football clubs. These problems are addressed using existing DCF model as part of income approach. The article describes in detail revenue mix and expenditure pattern of football clubs and the ways to forecast future cash flows. Besides it considers the methods of calculating the discount rate for valuation of FC and risks associated with its activities. Examples of different business models and statistics from European football market are provided.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
At the time of writing this the transfer of Gareth Bale from Tottenham Hotspur to Real Madrid in exchange for approximately € 100 million is yet to be confirmed.
References
Brand Finance Football 50. (2014). The annual report on the world’s most valuable football brands, May 2014. http://www.brandirectory.com/league_tables/table/top-50-football-club-brands-2014
Captains od Industry. (2013). All to play for Football Money League, 2014, Deloitte. http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Industries/Sports%20Business%20Group/uk-deloitte-sbg-dfml-2014.pdf
Champions League Final Draws TV Audience of 360 Million. (2013). FC business. Retrieved July 4, 2013, from http://fcbusiness.co.uk/news/article/newsitem=2434/title=champions+league+final+draws+tv+audience+of+360+million
CIES Football Observatory Annual Review. (2013). Retrieved July 4, 2013, from http://www.football-observatory.com/CIES-Football-Observatory-Annual,722
Companies continue to score with football sponsorship. (2013). Duncan Robinson, Financial Times. Retrieved July 4, 2013, from http://www.ft.com/intl/cms/s/0/2182ce9e-c5e5-11e2-99d1-00144feab7de.html#axzz2UachPwDt
David Conn. (2013). Follow the money. Retrieved July 4, 2013, from http://www.lrb.co.uk/v34/n16/david-conn/follow-the-money
Markhman, T. (2013). What is the optimal method to value a football club? ICMA Centre, Henley Business School, University of Reading.
Soccer’s Most Valuable Teams. (2014). Forbes, May 2014. from http://www.forbes.com/sites/mikeozanian/2014/05/07/the-worlds-most-valuable-soccer-teams-3/
Solntsev, I. (2012). Valuation of big sport facilities. LAP Lambert Academic Publishing GmbH & Co. KG (Germany) (in Russian).
Sportingintelligence’s Global Sports Salaries Survey (GSSS) for 2013. (2013). Retrieved July 4, 2013, from http://www.sportingintelligence.com/2013/06/11/revealed-man-city-rise-to-top-of-global-pay-charts-dodgers-soar-to-challenge-110601/
The Swiss Ramble. (2013). Retrieved July 4, 2013, from http://swissramble.blogspot.ru/
The World’s Highest-Paid Athletes. (2013). Behind the numbers, Kurt Badenhausen, forbes. Retrieved July 4, 2013, from http://www.forbes.com/sites/kurtbadenhausen/2013/06/05/the-worlds-highest-paid-athletes-2013-behind-the-numbers/
Transfer Market. (2012). FIFA report. Retrieved July 4, 2013, from http://www.fifa.com/aboutfifa/organisation/news/newsid=2059215/index.html
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Solntsev, I. (2014). Application of Income Approach for Valuation of Football Club. In: Pardalos, P., Zamaraev, V. (eds) Social Networks and the Economics of Sports. Springer, Cham. https://doi.org/10.1007/978-3-319-08440-4_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-08440-4_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-08439-8
Online ISBN: 978-3-319-08440-4
eBook Packages: Business and EconomicsBusiness and Management (R0)