Matchday revenues include incomes recieved for successful games in cups and leagues
Manchester United
Media revenues include UK TV deals, live broadcasts.
Manchester United has a wide range of commercial incomes, from sponsorship, to merchadising and financial services. Manchester United operates a TV channel, Radio Statio, Publishes a magazine, provides newletters broadbands, and desktop alerts. Another large chunk of its revenues come from tickets; tickets to games, hotel and cinema. Many mobile phone applications are also provided by MU; alerts, wallpapers, ringtones, ticket alerts, teamshirt orders and games. Manchester United related merchandising include a Megastore, betting, ticket applications, club memberships, eBay auctions, cinema, matchday hospitality, travel services, a soccer school, and broadband. Manchester United has ten official sponsors; Vodafone, Nike, Century Radio, Budweiser, Ladbrokes, Dimension Data, Fuji, Pepsi, Schick, and Audi UK. (ANON, 2005,
There are two measures that we have to observe in relation to the revenues of Manchester United Ltd; the CSF, which is the short form of Critical Success Factors, and KPI, which stand for key performance indicators.
The CSF measure identifies the factors that are neccessery for the company to develop and grow. To further refine our Manchester United revenue drivers measure, Porter's Five Forces Model will be applied to the corporate Manchester United, referred to as MU in the further sections of the paper.
The five forces model of Michael Porter looks like the following if applied to Mu Ltd.:
There are three major cost categories, those related to the operation and development of the corporate Manchester United, the costs related to the operation and development of the sporting club, and other, related costs.
The corporate costs include such costs as dept and maintance costs, and costs related to the commercial activities of the company
Examples of club related cost include the compensation of the players and staff, and purchase of new players and stuff.
The other costs include, for instance infrastructural costs, such as the maintance and development cost of the stadium of MU, the „Old Trafford”
Manchester United
The drivers of the costs of Manchester United, and the internal and external factors that influence the cost structure and levels of these cost in all the three major categories can be observed in the second part of question 1, in the Porter's Five Forces Model.
Probably the best multiple to measure the success of a club is the games won to the sum of tied and lost games. This is important, because the more games a club can win, the more the corporate club can achieve in its merchadising, and the more sponsors it will be able to attract. This multiple would be considered to be a non-funancial measure. A financial measure applicable to football corporations would be profitability if the company, as it, though with limmitations, measures how efficiently the club is operating. Another financial measure would be the revenues per players in a complete season.
Whether the wannabe Spanish international would have been allowed to ghost in to space if England’s new captain had been available will put regret in Sir Alex Ferguson’s mind.
A stronger emotion than regret will have coursed through the United supremo's veins after Nani's irresponsible two-footed dive at Petrov made a tough task almost impossible.
The winger’s rehabilitation program from wasteful winger to wonder man suffered a serious set-back. Forget the terrific cross to Giggs in the build up to James Collins’ own goal, the Portuguese’s reckless abandon beforehand truly cost United.
Even with 10 players, United were yards ahead of the dullards in claret and blue. Michael Carrick, Ryan Giggs and Wayne Rooney were on a different level to the basic fare on offer from the hosts, but were hampered by the extra man in the Villa ranks.
The chance to take advantage of this superiority was lost from the moment Ferdinand and Nani stepped out of line. Ferguson must now hope other glorious opportunities to move ahead of Chelsea will be grasped with both hands and a full complement of star
Since the terminal value often represents more than 50% of the entire DCF value it is therefore highly sensitive to the underlying assumptions, especially regarding the growth component in the terminal value and the discount rate. Using historical stock returns when estimating the beta depends heavily on the choice of the index. For volatile companies the beta is very high, resulting in a relatively high discount rate and a low net present value of cash flows. Estimating a “correct” value by applying the DCF approach therefore depends to a large extend on the expertise and industry knowledge of the person doing the valuation.
There are a number of limitations of applying the relative and the DCF methods to the evaluation of the company. For instance, purchasing new players and coaches cost a lot of money; it is not rare that that amount of money reaches one million euros. As it was seen in the above summary of the disadvantages of the DCF method. A possible solution to this problem, though not very humane, the cost of these players and coaches could be depreciated over the time frame of the contract involved, just as it is done in the case of new infrastructural expenditures.
Rio Ferdinand’s ‘frivolous’ appeal and Nani’s mindless lunge on Stiliyan Petrov both had an effect on the 1-1 draw against Aston Villa. United’s rampant march on to Chelsea’s coat tails was brought to an end thanks in part to a numerical disadvantage and momentary drop in concentration at the back.
A one-point deficit to Carlo Ancelotti’s side is nothing to be sniffed at. Regret will be a tangible emotion on the coach trip back to the north west of England though as the news of the table-toppers' defeat at Goodison Park sinks in.
Chelsea are not in the business of slipping up with frequency and Villa were there for the taking. Martin O’Neill’s outfit provided no contradictory evidence to the belief they are the least inspirational of the challengers for the European spots.
Every aimless ball pumped forward and directionless pass was mopped up easily by Wes Brown and Jonny Evans. Where Villa can hurt the meanest defence in the division is through their dead-ball deliveries.
Organisation and experience is paramount if a side is to have the capability to keep out the giants in the Midlanders ranks. With Ferdinand absent after he placed an elbow in the head of Hull City’s Craig Fagan, Carlos Cuellar was present to take advantage.
In the case of the Relative method, the problem is that the progression of the team in the national, that is in the Premier League, and in the international cups and championships, were much different both in the near past and will probably be in the future also. This increases the risk of the cyclicality of the business. This cyclicality can be much different in the case of the different corporate clubs, which makes the incomes and thus other results of the companies very difficult to compare.
