2007 2008 2009 2010

Revenue
Attendance 17.40 18.97 20.67 22.53
Sponsorship 15.70 17.11 18.65 20.33
Broadcast 28.70 31.28 34.10 37.17
Merchandise 5.20 5.67 6.18 6.73
Other 7.10 7.74 8.44 9.19
Total 74.10 80.77 88.04 95.96
Opearting costs
Payroll 50.92 56.01 61.61 67.77
Stadium Operating Expenses 16.38 17.04 17.72 18.43
Other 1.80 1.87 1.95 2.02
Total 69.10 74.92 81.28 88.22

EBITDA 5.00 5.85 6.76 7.74

Depreciation 2.20 2.29 2.38 2.47
EBIT 2.80 3.56 4.38 5.26
Interest 2.26 2.46 2.69 2.93
Taxes 0.19 0.38 0.59 0.82
Net Income 0.35 0.72 1.10 1.51

Capex 3.30 3.43 3.57 3.71

NWC -44.46 -48.46 -52.82 -57.58
change (NWC) 0.00 -4.00 -4.36 -4.75

FCF 0.72 5.17 6.02 6.94

Terminal Value
0.72 5.17 6.02 6.94
NPV 118.59
Discount rate 10.50

Assumptions
Revenue growth until 2019 9%
Long-term growth after 2019 4%
Salary growth until 2019 10%
Long-term growth after 2019 4%
Long-term growth rate of everything else 4%
 2011 2012 2013 2014 2015 2016 2017 2018

24.56 26.77 29.18 31.81 34.67 37.79 41.19 44.90

22.16 24.16 26.33 28.70 31.28 34.10 37.17 40.51
40.51 44.16 48.13 52.46 57.19 62.33 67.94 74.06
7.34 8.00 8.72 9.51 10.36 11.29 12.31 13.42
10.02 10.92 11.91 12.98 14.15 15.42 16.81 18.32
104.60 114.01 124.27 135.46 147.65 160.94 175.42 191.21

74.55 82.01 90.21 99.23 109.15 120.07 132.07 145.28

19.16 19.93 20.73 21.55 22.42 23.31 24.25 25.22
2.11 2.19 2.28 2.37 2.46 2.56 2.66 2.77
95.82 104.13 113.21 123.15 134.03 145.94 158.98 173.27

8.78 9.89 11.06 12.31 13.62 14.99 16.44 17.94

2.57 2.68 2.78 2.90 3.01 3.13 3.26 3.39
6.20 7.21 8.28 9.41 10.61 11.86 13.18 14.55
3.19 3.48 3.79 4.13 4.50 4.91 5.35 5.83
1.05 1.30 1.57 1.85 2.13 2.43 2.74 3.05
1.96 2.43 2.92 3.43 3.98 4.52 5.09 5.67

3.86 4.01 4.18 4.34 4.52 4.70 4.88 5.08

-62.76 -68.41 -74.56 -81.27 -88.59 -96.56 -105.25 -114.73
-5.18 -5.65 -6.16 -6.71 -7.31 -7.97 -8.69 -9.47

7.93 9.00 10.15 11.38 12.70 14.12 15.63 17.24

7.93 9.00 10.15 11.38 12.70 14.12 15.63 17.24

 2019 2020

48.94 50.90
44.16 45.93
80.72 83.95
14.63 15.21
19.97 20.77
208.42 216.76

159.81 166.20 2.579538

26.22 27.27
2.88 3.00
188.92 196.47

19.50 20.28
3.52 3.66
15.98 16.62
6.36 6.61
3.37 3.50
6.25 6.51

5.28 5.49
-125.05 -130.05
-10.33 -5.00

18.95 13.97
223.57
18.95 237.55
Unlevered Beta 1.184969
COE 10.5
 2007 2008 2009
Discount factor 1 0.90 0.82

Adding a stadium: -£72.46

Additional Revenues 0 0
Costs
Stadium capex 125 125
Depreciation
Stadium operationg costs
Total opearting costs 0.00 0.00
Taxes 0.00 0.00
Change in Working Capital 0.00 0.00
Total cash outlay 125.00 125.00
Cash Flow
Free Cash Flow -125.00 -125.00
Discounted back to 2007 -113.12 -102.37

Assumptions
Revenue growth 9.0%
long-term growth 4.0%
Salary growth 10.0%
Long-term growth of everything else 4.0%
Net Working Capital / Revenue ratio -60.0%
Tax rate 35.0%
Discount rate 10.50%
2010 2011 2012 2013 2014 2015 2016
0.74 0.67 0.61 0.55 0.50 0.45 0.41

13.08 14.26 15.54 16.94 18.46 20.12 21.93

25 25 25 25 25 25 25
2.58 2.68 2.79 2.90 3.02 3.14 3.26
27.58 27.68 27.79 27.90 28.02 28.14 28.26
-5.08 -4.70 -4.29 -3.84 -3.35 -2.81 -2.22
-7.85 -8.55 -9.32 -10.16 -11.08 -12.07 -13.16
-5.27 -5.87 -6.53 -7.26 -8.06 -8.93 -9.90

18.34 20.12 22.07 24.20 26.52 29.06 31.83

13.60 13.50 13.40 13.29 13.18 13.07 12.96
 2017 2018 2019 2020
0.37 0.33 0.30 0.27

23.91 26.06 28.40 29.54

25 25 25
3.40 3.53 3.67 3.82
28.40 28.53 28.67 3.82
-1.57 -0.87 -0.09 9.00
-14.34 -15.64 -17.04 -17.72
-10.95 -12.10 -13.37 -13.90

34.86 38.16 41.77 43.44

12.84 12.72 12.61 11.86
 2007 2008 2009
Discount factor 1 0.90 0.82

Adding a player £28.86

Revenue 5.17 5.64
Costs
Salary 2.50 2.75
Transfer fee 20.00
Total opearting costs 22.50 2.75
Change in Working Capital -3.10 -3.38
Taxes -6.07 1.01
Cash Flow
Free Cash Flow -8.16 5.26
Discounted back to 2007 -7.39 4.31

Assumptions
Revenue growth 9.0%
long-term growth 4.0%
Salary growth 10.0%
Long-term growth of everything else 4.0%
Net Working Capital / Revenue ratio -60.0%
Tax rate 35.0%
Discount rate 10.50%
2010 2011 2012 2013 2014 2015 2016
0.74 0.67 0.61 0.55 0.50 0.45 0.41

6.14 6.70 7.30 7.95 8.67 9.45 10.30

3.03 3.33 3.66 4.03 4.43 4.87 5.36

3.03 3.33 3.66 4.03 4.43 4.87 5.36

-3.69 -4.02 -4.38 -4.77 -5.20 -5.67 -6.18
1.09 1.18 1.27 1.37 1.48 1.60 1.73

5.71 6.21 6.74 7.33 7.96 8.65 9.39

4.23 4.16 4.09 4.02 3.96 3.89 3.82
2017 2018 2019 2020
0.37 0.33 0.30 0.27

11.23

5.89

5.89 0.00 0.00 0.00

-6.74 0.00 0.00 0.00
1.87 0.00 0.00 0.00

10.20 0.00 0.00 0.00

3.76 0.00 0.00 0.00
 2007 2008 2009
Discount factor 1 0.90 0.82

(1) Adding a stadium: -£72.46

Additional Revenues 0 0
Costs
Stadium capex 125 125
Depreciation
Stadium operationg costs
Total opearting costs 0.00 0.00
Taxes 0.00 0.00
Change in Working Capital 0.00 0.00
Total cash outlay 125.00 125.00
Cash Flow
Free Cash Flow -125.00 -125.00
Discounted back to 2007 -113.12 -102.37

(2) Adding a player £28.86

Revenue 5.17 5.64
Costs
Salary 2.50 2.75
Transfer fee 20.00
Total opearting costs 22.50 2.75
Change in Working Capital -3.10 -3.38
Taxes -6.07 1.01
Cash Flow
Free Cash Flow -8.16 5.26
Discounted back to 2007 -7.39 4.31

(3) Adding a stadium and a player £68.87

Revenues
from stadium 0.00 0.00
synergy 1 1
from player 5.17 5.64
Total revenues 5.17 5.64
Costs
Stadium capex 125 125
Depreciation
stadium operationg costs
Salary 2.50 2.75
Transfer fee 20.00
Total opearting costs 22.50 2.75
Taxes -6.07 1.01
Change in Working Capital -3.10 -3.38
Total cash outlay 144.40 124.37
Cash Flow
Free Cash Flow -139.23 -118.73
Discounted back to 2007 -126.00 -97.24

Assumptions
Revenue growth 9.0%
 long-term growth 4.0%
Salary growth 10.0%
Long-term growth of everything else 4.0%
Net Working Capital / Revenue ratio -60.0%
Tax rate 35.0%
Discount rate 10.50%
 2010 2011 2012 2013 2014 2015 2016
0.74 0.67 0.61 0.55 0.50 0.45 0.41

13.08 14.26 15.54 16.94 18.46 20.12 21.93

25 25 25 25 25 25 25
2.58 2.68 2.79 2.90 3.02 3.14 3.26
27.58 27.68 27.79 27.90 28.02 28.14 28.26
-5.08 -4.70 -4.29 -3.84 -3.35 -2.81 -2.22
-7.85 -8.55 -9.32 -10.16 -11.08 -12.07 -13.16
-5.27 -5.87 -6.53 -7.26 -8.06 -8.93 -9.90

18.34 20.12 22.07 24.20 26.52 29.06 31.83

13.60 13.50 13.40 13.29 13.18 13.07 12.96

6.14 6.70 7.30 7.95 8.67 9.45 10.30

3.03 3.33 3.66 4.03 4.43 4.87 5.36

3.03 3.33 3.66 4.03 4.43 4.87 5.36

-3.69 -4.02 -4.38 -4.77 -5.20 -5.67 -6.18
1.09 1.18 1.27 1.37 1.48 1.60 1.73

5.71 6.21 6.74 7.33 7.96 8.65 9.39

4.23 4.16 4.09 4.02 3.96 3.89 3.82

13.08 14.26 15.54 16.94 18.46 20.12 21.93

3 3 3 3 3 3 3
18.43 20.09 21.89 23.86 26.01 28.35 30.90
31.51 34.34 37.43 40.80 44.47 48.48 52.84

25 25 25 25 25 25 25
2.58 2.68 2.79 2.90 3.02 3.14 3.26
3.03 3.33 3.66 4.03 4.43 4.87 5.36

30.61 31.01 31.45 31.93 32.45 33.01 33.62

0.32 1.17 2.09 3.11 4.21 5.41 6.72
-18.90 -20.60 -22.46 -24.48 -26.68 -29.09 -31.70
-13.30 -14.59 -16.01 -17.55 -19.24 -21.07 -23.08

44.80 48.93 53.44 58.35 63.71 69.55 75.92

33.21 32.82 32.44 32.05 31.67 31.29 30.91
-0.22037787
 2017 2018 2019 2020
0.37 0.33 0.30 0.27

23.91 26.06 28.40 29.54

25 25 25
3.40 3.53 3.67 3.82
28.40 28.53 28.67 3.82
-1.57 -0.87 -0.09 9.00
-14.34 -15.64 -17.04 -17.72
-10.95 -12.10 -13.37 -13.91

34.86 38.16 41.77 43.45

12.84 12.73 12.61 11.86

11.23

5.89

5.89 0.00 0.00 0.00

-6.74 0.00 0.00 0.00
1.87 0.00 0.00 0.00

10.20 0.00 0.00 0.00

3.76 0.00 0.00 0.00

23.91 26.06 28.40 29.54

3
33.69
57.59 26.06 28.40 29.54

25 25 25
3.40 3.53 3.67 3.82
5.89

34.29 28.53 28.67 3.82

8.16 -0.87 -0.09 9.00
-34.56 -15.64 -17.04 -17.72
-25.27 -12.10 -13.37 -13.91

82.86 38.16 41.77 43.45

30.53 12.73 12.61 11.86
Team EV Net Debt/EV Revenue Operating Income
Manchester United 934 0.84 169 50
Arsenal 588 0.53 134 11
Chelsea 345 0.28 154 -20
Liverpool 291 0.18 123 20
New castle United 167 0.46 87 6
Tottenham Hotspur 156 0.12 75 5
Everton 106 0.32 58 -8
Aston Villa 90 0.16 50 -11

90

80
f(x) = 0.67521857

70

60

50

40

30

20

10

0
-10 0
 Avg Net Goal Avg Points New Avg Net Goal New Avg Points New Revenue
42.7 82
38.1 77
33.9 74
24.6 67
2.3 53
-1.9 51 10.1 58.44 85.94
-4.9 49
0 51

Avg Points
90

80
f(x) = 0.6752185753x + 51.6225670059

70

60

50

40

30

20

10

0
0 10 20 30
Increment

5.17

30 40 50