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Application of Income Approach for Valuation of Football Club

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Social Networks and the Economics of Sports

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.

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Notes

  1. 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

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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

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