Re: LEquipe: Thiago Silva, Ibra and Verratti to PSG! (UPDATED July 17)

by Swanhends Wed Jul 18, 2012 7:30 pm

PSG at least 170 million in losses over next two years

che wrote:

by Guest Wed Jul 18, 2012 7:31 pm

QSG signed veratti and ibra, lavezzi. well PSG missed lorenzo Insigne.... i gotta feeling that he is miles better than lavezzi.

lorenzo insigne will steal spotlight this season next season he will probably end up in QSG

im looking forward to seeing him.... he is hell of player Thumbs up

by sportsczy Wed Jul 18, 2012 7:35 pm

You guys do realize that the french entity of PSG also owns TV stations and TV right internationally. They launched BeIn Sports TV in France. Launching it this fall in the US. Going to UK and Germany.

They also increased their average attendance from 29k to over 40k last year (90%+ attendance). Apparently, this season is going to be sold out before the first game too.

They turned a profit this past year lol. They will not this coming season obviously... but they are going to build a new stadium for sure and the media revenue from PSG and their TV stations will be a lot. Not to mention all the naming contracts expire in 2 years.

I can almost guarantee that they team will turn a profit in 3 years or very close to it. This is not some Sheik playing around... this is a sovereign fund led by money managers who have a specific business plan.

Get a clue please.

by Great Leader Sprucenuce Wed Jul 18, 2012 7:42 pm

Has anyone posted this?

Zlatan: I'll have to learn about the other French players but, for sure, they know who I am.

At his first press conference. Laughing

GOAT

by Vibe Wed Jul 18, 2012 8:07 pm

Great Leader Sprucenuce wrote:Zlatan: I'll have to learn about the other French players but, for sure, they know who I am.

GOAT

I'm not even sure who he is...

LEquipe: Thiago Silva, Ibra and Verratti to PSG! (UPDATED July 17) - Page 25 576130_396606003731654_98514160_n

by Swanhends Wed Jul 18, 2012 8:37 pm

sportsczy wrote:They turned a profit this past year lol. They will not this coming season obviously... but they are going to build a new stadium for sure and the media revenue from PSG and their TV stations will be a lot. Not to mention all the naming contracts expire in 2 years.

Get a clue please.

I think you're the one who needs to get a clue.

http://swissramble.blogspot.com/

"In the last published accounts for the 2010/11 season, before the impact of the QSI takeover is considered, they made a tiny loss of €201,000, though this was heavily influenced by exceptional financial items of €27.9 million. These are not explained, though are probably due to movements in provisions, which was the case in 2009/10.

Excluding this adjustment, PSG’s loss would have been €28.1 million, even higher than the €21.9 million the previous season, which was the second highest in Ligue 1. The 2010/11 operating loss was essentially due to €130 million of expenses, including €70 million of wages, being far higher than the €101 million of revenue. Profit on player sales and interest payable were negligible.

In the previous five years, PSG’s loss averaged over €14 million a season, while the cumulative losses since 1998 add up to a colossal €300 million. In those 13 years, PSG have not once reported a profit."

by Swanhends Wed Jul 18, 2012 8:44 pm

"For revenue, let’s make a few extravagant assumptions. First, PSG will win Ligue 1, so their revenue will rise to €46 million, which is €7 million more than they received in 2010/11. They will also reach the quarter-finals of the Champions League, as Marseille did last year, so will receive €38 million (after the increase in TV rights), which is €34 million more than the €4 million they received from the Europa League in 2010/11.

Following the growth in attendances and higher ticket prices plus more attractive Champions League matches, we’ll go for a gutsy 100% increase in match day revenue, producing an additional €18 million. Similarly, we’ll assume a 50% increase in commercial income, worth an extra €19 million. In the long-term, PSG should earn considerably more here, but they are constrained in the short-term by existing contracts. For good measure, we’ll assume that they can make €10 million more profit on player sales.

All of that gives us a projected loss of €92 million, which is not too far away from PSG’s budgeted €70 million, but this estimate does include some fairly aggressive assumptions regarding revenue growth. In any case, it is clear that PSG will have to be very persuasive in their FFP discussions with UEFA about how their “project” will ultimately deliver more revenue and help them towards the elusive break-even point.

by sportsczy Wed Jul 18, 2012 9:02 pm

Qatar didn't own PSG until the 2011/2012 season Laughing

. Colony Capital owned it in 2010/2011 and attendance was 25% less than it was this past year, let alone the merchandising increases with new start players, new marketing contracts, media contracts, etc.

But thanks for the trivia genius...

by S Wed Jul 18, 2012 9:19 pm

Spoiler:

Spoiler:

by kiranr Wed Jul 18, 2012 9:23 pm

How is tv money distributed in France?

With all the player purchases (amortizations) and the increase in the wages, the next 2 years are definitely going to be interesting when FFP is going to be implemented.

by Guest Wed Jul 18, 2012 9:29 pm

PSG are a joke

end of.

by sportsczy Wed Jul 18, 2012 9:32 pm

The actual revenue sharing on TV is similar to EPL's.

But PSG owns partial domestic and 100% foreign right of all Ligue 1 broadcasts. They also bought La Liga, Seria A, Bundi and EPL distribution rights for various countries under their French media company. So the entity that owns and operates PSG has many, many other revenue sources than just your average football teams. They already launched a 24/7 sports TV network in France and are doing it internationally (BeIn Sports).

Also, keep in mind that when you buy a player, you amortize his cost over the life of his contract. For example, Silva was bought for 42 million on a 5-year contract. Only his wage + 1/5 of the transfer price hit the books in any year. Etc.

They have 3 years to get into the black. Since they own their own TV rights, have their own TV network and are doing things like the Yankees and Madrid have done it, they have a very good chance of achieving it.

by sportsczy Wed Jul 18, 2012 9:33 pm

Joke's on you Crimson Laughing

by kiranr Wed Jul 18, 2012 9:37 pm

sportsczy wrote:The actual revenue sharing on TV is similar to EPL's.

But PSG owns partial domestic and 100% foreign right of all Ligue 1 broadcasts. They also bought La Liga, Seria A, Bundi and EPL distribution rights for various countries under their French media company. So the entity that owns and operates PSG has many, many other revenue sources than just your average football teams. They already launched a 24/7 sports TV network in France and are doing it internationally (BeIn Sports).

Also, keep in mind that when you buy a player, you amortize his cost over the life of his contract. For example, Silva was bought for 42 million on a 5-year contract. Only his wage + 1/5 of the transfer price hit the books in any year. Etc.

They have 3 years to get into the black. Since they own their own TV rights, have their own TV network and are doing things like the Yankees and Madrid have done it, they have a very good chance of achieving it.

But the revenue from those tv channels won't be on PSG's books, right? It is all the parent company's revenue streams.

Doesn't the FFP only look at the books of the club?

by sportsczy Wed Jul 18, 2012 9:43 pm

kiranr wrote:
sportsczy wrote:The actual revenue sharing on TV is similar to EPL's.

But PSG owns partial domestic and 100% foreign right of all Ligue 1 broadcasts. They also bought La Liga, Seria A, Bundi and EPL distribution rights for various countries under their French media company. So the entity that owns and operates PSG has many, many other revenue sources than just your average football teams. They already launched a 24/7 sports TV network in France and are doing it internationally (BeIn Sports).

Also, keep in mind that when you buy a player, you amortize his cost over the life of his contract. For example, Silva was bought for 42 million on a 5-year contract. Only his wage + 1/5 of the transfer price hit the books in any year. Etc.

They have 3 years to get into the black. Since they own their own TV rights, have their own TV network and are doing things like the Yankees and Madrid have done it, they have a very good chance of achieving it.

But the revenue from those tv channels won't be on PSG's books, right? It is all the parent company's revenue streams.

Doesn't the FFP only look at the books of the club?

Not if the club is buying the TV rights under the club's umbrella, not the parent company's, and is using PSG/League brand significantly, which they will be. It's a question of which entity is taking the risk of the investment (PSG is) and if the business is related to the main operations of the entity (which a 100% football TV network would be).

When the time comes, they will have the club revalued to do a "mark to market" adjustment as well. It's a not cash gain.... but a gain nonetheless, which will be very significant methinks.

It's a heck of a business plan. It's well thought out.

by Adit Wed Jul 18, 2012 9:44 pm

kiranr wrote:

But the revenue from those tv channels won't be on PSG's books, right? It is all the parent company's revenue streams.

Doesn't the FFP only look at the books of the club?

Yes and only football related revenues count.

For example revenue from Real Madrid Resort in Qatar will not count for FFP.

by Adit Wed Jul 18, 2012 9:47 pm

Revenue from running a Television channel doesnt count for FFP. Dosnt matter if PSG own them or not ,it will not count for the records.

by sportsczy Wed Jul 18, 2012 9:50 pm

Adit wrote:
kiranr wrote:

But the revenue from those tv channels won't be on PSG's books, right? It is all the parent company's revenue streams.

Doesn't the FFP only look at the books of the club?

Yes and only football related revenues count.

For example revenue from Real Madrid Resort in Qatar will not count for FFP.

Separate entity Adit... and non operating income. As i explained it above, this is operating income for PSG since it is using their football games. Think of Real Madrid TV... it counts. If it qualifies as operating income, it is a go. The Qataris made sure there was precedent for doing this and expanded their operations to include this revenue stream and then some.

by kiranr Wed Jul 18, 2012 9:52 pm

Yes, if the rights are under PSG's umbrella, the potential revenue streams seem quite solid.

There is still the matter of all the amortization and depreciation of these assets (players, rights etc). The next two years will be interesting nonetheless.

by sportsczy Wed Jul 18, 2012 9:53 pm

kiranr wrote:Yes, if the rights are under PSG's umbrella, the potential revenue streams seem quite solid.

There is still the matter of all the amortization and depreciation of these assets (players, rights etc). The next two years will be interesting nonetheless.

Yeah. It becomes an accounting game of allocation.

by Adit Wed Jul 18, 2012 9:54 pm

Actually Real Madrid TV revenue doesnt count for Actual relevant income nor does the expenses counts for Actual relevant Expenses according to FFP rules.

by sportsczy Wed Jul 18, 2012 9:57 pm

Adit... it does. I don't want to get into specifics... but as long as the accounting standard used in the location of the club counts the activity as "operating", everything counts. FFP rules rely on the accounting standards and the annual reports provided under those standards to ascertain profit & loss. They couldn't do it any other way for a lot of reasons.

by kiranr Wed Jul 18, 2012 9:58 pm

I am really interested in knowing how they will market the league overseas in US, middle east etc. Buying the rights of all other leagues helps quite a bit in gaining viewers, but to get these people to watch the Ligue 1 will be an interesting problem and i definitely want to know how they are going about this.

by sportsczy Wed Jul 18, 2012 10:03 pm

kiranr wrote:I am really interested in knowing how they will market the league overseas in US, middle east etc. Buying the rights of all other leagues helps quite a bit in gaining viewers, but to get these people to watch the Ligue 1 will be an interesting problem and i definitely want to know how they are going about this.

Well to start, BeIn Sport 1 in France launched before the Euro and broadcast all the Euro games. It cost 11 euros a month. Here' s the site for the station http://www.beinsport.fr/

BeIN Sports, that launches in the US in a couple of weeks, and has including in its marketing: "the place where you can watch all of PSG's games!" http://enpleinelucarne.net/2012/05/le-psg-tete-de-gondole-552

by Doc Wed Jul 18, 2012 10:17 pm

I do love an informative thread. The "get a clue" part probably could have been not used though. Anyway, since BeIn Sport 1 is launching in the States apparently, how exactly are they gonna go about actually convincing the masses to actually subscribe. No disrespect to Ligue 1 but it isn't exactly a league that says "Watch me" nor does PSG have all that star power (as yet).

by nichabr Wed Jul 18, 2012 10:18 pm

What is Thiago being paid at PSG now that hes gone over because AC Milan already raised it before he left...has it raised again?

And does anyone know what PSG spends on wages alone?

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