TABLE OF CONTENTS

1. Introduction
2. Latest Business Trends in Football
3. LaLiga Lands in USA
4. Juventus FC – New Era with Cristiano Ronaldo
5. Change = Opportunity for New Leaders
6. Conclusions
WHO WE ARE &
WHAT WE DO

CARLOS GAZAPO DÍEZ

Marketing Executive
Sports Business Institute Barcelona
 HELPING
PROFESSIONALS
START OR
ADVANCE THEIR
CAREER IN
FOOTBALL
SBI IN THE PRESS
 LATEST
BUSINESS
TRENDS
IN FOOTBALL
 THE
MODERN
FAN IS A
CONNECTED
CONSUMER

Source: Stephen Bourke/ SBI Barcelona

 SOCIAL
STREAMING
OF LIVE
SPORTS

Source: Stephen Bourke/ SBI Barcelona

 THE
DISRUPTIVE
FORCE OF
E-SPORTS

Source: Stephen Bourke/ SBI Barcelona

 DISRUPTING
HOW
ATHLETE
STORIES
ARE
SHARED

Source: Stephen Bourke/ SBI Barcelona

 CASE STUDY:
LA LIGA
ARRIVES IN USA
 OVERVIEW-MILESTONES
Before 2013 After 2013

Accumulated economic losses

Lack of a strong framework to

manage debt overhangs

Poor financial results /

Outstanding and tax liabilities

Decline in the attractiveness of

the product
LA LIGA’S STRATEGIC
ACTION LINES
Economic Control of Clubs’ Budgets

TV Rights’ Product

Globalization Process
 GLOBALIZATION PROCESS
1 2
LA LIGA GLOBAL NETWORK
COMMERCIAL OFFICES
Global strategy to recruit ACROSS THE GLOBE
professionals to explore and Opening of commercial
generate business opportunities in offices worldwide
strategic markets

3
DELEGATES ALL OVER THE WORLD
Representatives sent to strategic
markets in order to understand how
local markets work
4
ALLIANCES WITH
DIFFERENT PARTNERS
New business opportunities with media
providers and other stakeholders
 LALIGA & RELEVENT JOINT VENTURE

INTRODUCTION OBJECTIVES PROPOSAL

LaLiga & Relevent Official LaLiga

1. Promote soccer in the US & Canada Santander game played
in USA
2. Boost the league’s growth in the US &
$ 200 Million global deal
Canada
over 15 years

Development of
Youth academies Marketing
youth soccer
Agreements
coaches
LA LIGA NORTH AMERICA + RELEVENT

Relevent = Sports & Enterntainment Group

LaLiga North America = LaLiga subsidiary in the US

WHY? To promote soccer in the US & Canada

HOW? By staging a regular season game

LA LIGA NORTH AMERICA + RELEVENT
ORGANIZATION

VS

WHEN? JANUARY 26, 2019

HARD ROCK STADIUM

WHERE?
MIAMI, USA
LA LIGA NORTH AMERICA + RELEVENT
CHALLANGES

APPROVAL OF 5 GOVERNING BODIES &

CLUB AGREEMENT
LA LIGA NORTH AMERICA + RELEVENT
COMPENSATORY MEASURES

OPTION A 1500 FREE FLIGHS + OVERNIGHT STAY

5000 TICKETS GIVEN TO GIRONA SEASON TICKET HOLDERS

OPTION B
TO ATTEND GAME AT CAMP NOU + 20 % REFUND ON
SEASON TICKET

40% REFUND ON SEASON TICKET HOLDERS WHO DO NOT

OPTION C
TRAVEL TO MIAMI OR CAMP NOU
 CASE STUDY:
EL CLASICO IN
MIAMI 2017
 CASE STUDY:
CRISTIANO
RONALDO
&
JUVENTUS FC
 CASE STUDY:
CRISTIANO RONALDO & JUVENTUS FC

1. Is CR7 a good investment?

2. What are the implications for Juventus FC?

3. What does the future hold?

4. Is it a win-win agreement?
 CASE STUDY:
Juventus
Investment
CRISTIANO
RONALDO
Social
media
Profitable? &
JUVENTUS FC

CR7
Revenue Risk &
Streams Challenges

Brand
impact
 CR7 & JUVENTUS FC
€100 million transfer fee: payable in two financial year
Juventus FC €117 million
investments 4-year deal €5 million to FIFA solidarity payments

€12 million agent fees

Gross €55 million a year

ANNUAL AMORTIZATION OF THE TRANSFER FEE €30 million a year Salary of CR7
Net €30 million a year

€85 million/season
CR7 FINANCIAL
COST €340 million/ 4 years
FOR JUVENTUS
FC
 CR7 & JUVENTUS FC

• UEFA FFP Requirements = Break-Even Compliance

Risk and
challenges • Up to €30 million for Assesment Period (3 years)

Juventus FC 2018-19 strategy

2016-17 -> Positive net income €42,5 million
2015-16 -> Positive net income €4million Acquisition: €-257 million
? 2017-18 -> Pending to be disclosed Disposal: + €99,5 million
Net players transfer: €-157,5 million

• Over 2018-19 season, Juventus will be monitored by CFCB looking at the

balances sheets of the three previous season: 2015-16, 2016-17 and 2017-18

• To meet UEFA FFP Juventus FC will have to sell players

 CR7 & JUVENTUS FC

REVENUES MATCHDAY
BROADCASTING
STREAMS

COMMERCIAL PLAYERS’ REGISTRATION RIGHTS

CR7 & JUVENTUS FC

• Juventus total revenue has been

growing steadily reaching €562m in
2016-17

• 2106-17: PRR (Pogba & Morata) + TV

Rights comprised 68,2% of the total
revenues. Revenues from UEFA
Champions League reached €110
million

• 2017-18 revenues dropped mainly due

to Player Registration Rights & TV (UCL
competition performance)
CR7 & JUVENTUS FC
Advantages for Cristiano Ronaldo in Italy

Beneficial tax system in Italy

• Flat tax €100.000/year for abroad income = 92% CR7 image rights
• Regardles of amount from image rights.
• Law approved in 2017.

• CR7 image rights income earned in the last 10 years = €138 million
 CR7 & JUVENTUS FC

Brand International Brand Exposure Increased Global Fan Base

Impact

Strategic Market Penetration Monetization

+

Social
Media

WHAT DOES IT TELL US?

 CR7 & JUVENTUS FC

v Social & digital lanscape have

changed everything
v Fans’ mentality shift : follow the athlete
rather than the club
v +3,5 million Instagram followers after
the announcement
v Massive fans exodus from Real Madrid to
Juventus
v New global scope -> China fan base

v Ronaldo total fan base = 140 million

Juventus challenge: Understand social media fans’ behaviour

STRENGTHS WEAKNESSESS
• Brand • Negative image from past scandals
• Infrastructure • Ownership structure -> 63.8% control
• Sport results of investment firm
• Finances • Unilateral decisión making??
• Large and loyal fan base

THREATS OPPORTUNITIES
• New technology
• Economic uncertainty • Social media
• Stock market • Fans in new markets
• New competitors • Merchandise revenue stream
• Collective selling of TV rights • 7 regional agreements
• Image of Italian football
 CHANGE =

NEW
OPPORTUNITIES
FOR
TOMORROW’S
LEADERS
THANK YOU!
Carlos Gazapo
Carlos.gazapo@sbibarcelona.com
info@sbibarcelona.com
@sbi_Barcelona
www.sbibarcelona.com