Essay about Tottenham Case

2086 Words Jan 20th, 2013 9 Pages
Mona School of Business
The University of the West Indies, Mona

Masters in Business Administration
Cohort 15

SBFI6020 – Advanced Corporate Finance

Tottenham Hotspur
ID#:
620039225

Date: January 30, 2013
Lecturer: Harry Abrikian

MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:

Daniel Levy, Chairman Tottenham Hotspurs Football Club
Davion Bramwell, Consultant, Solutech Innovation
January 30, 2013
New Stadium and Player Acquisition

As requested, the report outlines the analysis of the options available to Tottenham Hotspur
Football Club (THFC) for generating more revenue in order to gain a comparative advantage amongst key competitors. The options available to the club are as follows:
1. Operating the existing current stadium with 36,500 seats
…show more content…
The option of Stadium and
Player will increase substantially the operating incomes form 2010 onwards, if predicted growing rates apply. See Exhibit 4 below that supports this claim.
Exhibit 4 - DCF analysis for a New Stadium and New Player
2007
Revenues from stadium synergy from player
Total revenues
Costs
Stadium capex
Depreciation
stadium operationg costs
Salary
Transfer fee
Total opearting costs
Taxes
Change in Working Capital
Total cash outlay
Cash Flow
Free Cash Flow
Discount Factor
Present Value of each Cash Flow

Net Present Value

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

0.00
1
3.92

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