What is the impact of a Private Equity in a European football club? / Nidaye EL HADJI CHEIKH BIKIRY / 2022

Titre : What is the impact of a Private Equity in a European football club? Type de document : Mémoire Auteurs : Nidaye EL HADJI CHEIKH BIKIRY, Auteur Année de publication : 2022 Importance : 41 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec cotre compte Office 365 via le bouton CONNEXION en haut de la page. Langues : Anglais (eng) Mots-clés : Management EUROPE ; INVESTISSEMENT Entreprise FOOTFALL Résumé : Football has experienced a strong growth and maturity in the 21st century due to the evolution of globalization and therefore the internationalization of the sport. For many years, football has always been a sport owned by HNWIs, associations and fans. Since the past 10 years, the world of football has undergone a major transformation with new types of investors such as Private Equity funds aiming at buying football clubs. The interest of this type of investors has therefore raised several questions. In fact, in general, clubs are usually owned either by HNWIs or associations on a long-term basis, whereas Private Equity funds always have a short-term logic. Our dissertation was therefore motivated by the fact that we wanted to understand what parameters these funds use to increase the value of a club on a short-term basis. With the covid crisis, the proliferation of private funds has skyrocketed. The football industry has experienced an unprecedented crisis in 2019 as revenues are highly sensitive to sponsorships, match tickets and media rights. The Private Equity funds became an alternative partner, which is able to give a boost to these sports entities. The need for liquidity of football clubs was unprecedented. In addition to this mutual interest in a crisis context, football clubs represent a great growth opportunity for investors because of the revenue sources generated and the initiation of the financial fair play by football authorities in Europe. Through our dissertation, the objective will be to show the impact of private equity in a Europeanfootball club. We will study how a private fund impacts the valuation of the football club. To do this, first, we will start with a literature review to have an overview from different authors on the subject. Secondly, in our empirical study, we will perform a linear regression analysis of a set of clubs made up of private equity backed clubs and clubs owned by HNWIs or associations. Finally, we will present a case study to deepen and prove the relevance of our analysis on the impact of Private Equity and identify the main parameters of the club used as levers to increase the Enterprise value. We will compare two football clubs of the same size, which play in the same national league, same type of European competitions and which have comparable financial structures. Programme : MSc Corporate Finance Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=568529