Value-drivers and valuation in professional sports: a european-American comparison
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10. ConclusionThis thesis has shown that professional sports teams should be regarded as truly unique businesses. Their characteristics are very different when comparing North America and Europe, which has implications for specific valuations approaches. Throughout this thesis data limitations have played an important role, but this has not prevented the execution of empirical research. The data which was at hand was used optimally and has added significant value to the elaborate overview of available literature on this subject. Value is determined by factors such as structure of leagues, actions by owners, revenue drivers but also a charateristic such as team history. Standard valuations methods are not fully equipped to be directly extended to professional sports teams. This is due to the fact that these valuation methods are usually designed for ordinary manufacturing or service providing companies. Another important factor is the occurrence that most teams are not listed on a stock exchange, which limits the amount of publicly disclosed data. Those that are, provide a wealth of information which can be used and applied on comparable companies. Together with historical and sector specific information an estimation of value can be made albeit with some reservations. Where standard textbooks do provide some important insights, the empirical research in this thesis provides additional views on valuation in professional sports. Although this thesis would have liked to provide a quantified discount factor and a waterproof valuation framework, common sense would have already precluded this. Instead it has given the reader a thorough and detailed overview of very interesting aspects of modern day professional sports. The value of these businesses are changing every day and they attract the attention of many. Those who are interested can use the knowledge in this field, which was displayed in this thesis, to understand the processes which drive value. The limitations of this thesis are its focus on only two specific parts of professional sports. However, the two empirical studies have already stated that the methodology which was applied, could also be implemented on other sports and markets. This further research could be used to verify the conclusions of the empirical studies in a different setting. Another avenue of research would be focussing purely on listed football clubs and investigate if their stock prices is affected by changes in different revenue streams or risk factors presented in this thesis. This element was behond the scope of this thesis. ReferencesArticles: Andreff, W. & Staudohar, P.D. (2000) The evolving European model of Professional sports Finance. Journal of Sport Economics, 1, 257-276 Ascari, G. & Gagnepain, P. (2006) Spanish Football. Journal of Sport Economics 7, 76-89 Buraimo, B., Simmons, R. & Szymanski, S. English Football. Journal of Sport Economics 29-46 Baroncelli, A. & Lago, U (2006) Italian Football. Journal of Sport Economics, 7, 13-28. Frick, B & Prinz, J. (2006) Crisis? What crisis? Football in Germany. Journal of Sport Economics, 7, 60-75 Gouget, J-J. & Primault, D. (2006) The French Expection Journal of Sport Economics, 7, 47-59 Lago, U., Simmons, R. & Szymanski, S. (2006) The Financial Crisis in European Football: An Introduction Journal of Sport Economics, 7, 3-12 Books: Brooks, C. (2008) Introductory econometrics for finance. Cambridge: Cambridge University Press Cooke, A. (1994) The economics of leisure and sport. London: Routledge Damodaran, A. (2002) Investment valuation. New York: John Wiley & Sons Inc. Koller, T., Goedhart, M. & Wessels, D. (2005) Valuation: Measuring and Managing the Value of Companies. Hoboken: McKinsey & Company Inc. Leeds, M.A. & von Allmen, P. (2008) The economics of sports. Boston: Pearson Education Moore, D.S., McCabe, G.P., Duckworth, W.M. & Alwan, L.C. (2009) The practice of Business statistics. New York: W.H. Freeman and Co. Morrow, S. (1999) The new business of football. London: Macmillan Press Ltd. Reilly, R.F. & Schweihs, R.P. (2004) The handbook of business valuation and intellectual property analysis. New York: McGraw-Hill Sandy, R., Sloane, P.J. & Rosentraub, M.S. (2004) The economics of sport: An international perspective. New York: Palgrave Macmillan Smith, G.V. & Parr, R.L. (1994) Valuation of intellectual property an intangible assets. (1994) New York: John Wiley & Sons Inc. Online reports: Business of Baseball 2008: http://www.forbes.com/sportsbusiness/2008/04/16/baseball-team-values-bix-sports-baseball08-cx_mo_kb_0416baseball_land.html by Michael K. Ozanian and Kurt Badenhausen The Most Valuable Soccer Teams http://www.forbes.com/2008/04/30/valuable-soccer-teams-biz-soccer08-cx_jg_pm_0430soccer_land.html by Jack Gage and Paul Maidment Annual review of Football Finance: Sterling Silverware 29th May 2008 Deloitte 1 According to data retrieved from the website of the International Monetary Fund 2 Total revenue of MLB, NFL, NHL and NBA added together. 3 Being: English Premier League, Italian Serie A, Spanish La Liga, German Bundesliga and the French Ligue 1. 4 UEFA is the governing body of European football and consist of 53 members. 5 Qualification for the UEFA Champions League and Europe League is based on domestic performance the season prior to possible contention. 6 Source: MLB.com 7 Rings refer to the commemoration that players receive for winning the World Series. 8 www.libertymedia.com 9 www.tribune.com 10 www.rogers.com 11 www.nintendo.com 12 New England Sport Ventures 13 Leeds & von Allmen (2008) 14 Source: www.vi.nl 15 Zero= near to zero player development cost could be activated on the balance sheet. 16 EBITD(A) = Earnings before Interest Taxes Deprecation (Amortization) 17 In the US, players are only exchanged by clubs for other players and not for money. When a player is out of contract he is free to choose another employer 18 R2 is the square of the correlation coefficient ρ relating the dependent and independent variables Directory: pub pub -> Project Scoring Template Pre-Construction Phase New Core/Branch Campus Projects pub -> Acm word Template for sig site pub -> The german unification, 1815-1870 pub -> Baltic Olympiads in Informatics: Challenges for Training Together pub -> Preparation of Papers for ieee transactions on medical imaging pub -> Forthcoming meetings and conferences pub -> Asilomar Conference on Circuits, Systems & Computers, Pacific Grove, ca, November 1978, pp. 55 58 pub -> Forthcoming meetings and conferences pub -> Harmonised compatibility and sharing conditions for video pmse in the 7 9 ghz frequency band, taking into account radar use Download 224.47 Kb. Share with your friends:
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