...9-209-059 REV: MARCH 23, 2009 LAUREN COHEN JOSHUA COVAL CHRISTOPHER MALLOY Tottenham Hotspur plc In early 2008, Daniel Levy, chairman of Tottenham Hotspur Football1 Club, was contemplating a bold move for the organization, one that he hoped would help vault the team into the upper echelon of the English Premier League (“Premiership”). Despite the club’s long and storied history, Levy felt that the team’s future success likely required a significant investment in physical assets, notably the development of a new stadium. Tottenham currently played in an old stadium called White Hart Lane with a capacity of only 36,500 fans, but had the opportunity to build a new stadium on some adjacent property. Most of their key competitors, such as Arsenal, Manchester United, and Chelsea, had newer or larger stadiums, and were able to leverage the added revenues these stadiums provided to gain a competitive advantage in the cutthroat player acquisition market. Levy had to decide if the benefits of a new stadium were worth the substantial commitment of time and resources that its construction would entail. Background Founded in 1882, the Tottenham Hotspur Football Club was one of the oldest teams in the Premiership. Its rich history featured a successful product on the pitch, as evidenced by major trophies in each of the past six decades--a feat matched only by Manchester United, and a series of innovations off the pitch as well. The club became the first publicly-owned football club...
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...9-209-059 REV: MARCH 23, 2009 LAUREN COHEN JOSHUA COVAL CHRISTOPHER MALLOY Tottenham Hotspur plc In early 2008, Daniel Levy, chairman of Tottenham Hotspur Football1 Club, was contemplating a bold move for the organization, one that he hoped would help vault the team into the upper echelon of the English Premier League (“Premiership”). Despite the club’s long and storied history, Levy felt that the team’s future success likely required a significant investment in physical assets, notably the development of a new stadium. Tottenham currently played in an old stadium called White Hart Lane with a capacity of only 36,500 fans, but had the opportunity to build a new stadium on some adjacent property. Most of their key competitors, such as Arsenal, Manchester United, and Chelsea, had newer or larger stadiums, and were able to leverage the added revenues these stadiums provided to gain a competitive advantage in the cutthroat player acquisition market. Levy had to decide if the benefits of a new stadium were worth the substantial commitment of time and resources that its construction would entail. Background Founded in 1882, the Tottenham Hotspur Football Club was one of the oldest teams in the Premiership. Its rich history featured a successful product on the pitch, as evidenced by major trophies in each of the past six decades--a feat matched only by Manchester United, and a series of innovations off the pitch as well. The club became the first publicly-owned football club...
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...Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? The value of Tottenham is £13.80, and at it’s current price of is £, is overvalued. Executive Summary: This case analysis answers a few questions key to the future of Tottenham Hotspur in the coming years: 1. Using a DCF, what is the value of Tottenham, and at its current price, is Tottenham fairly valued? ...
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...Course Tutor: Jon Davy | Year: 2012/2013 | Unit: 13 Leadership in Sport | Tutor: Jon Davy | Assignment Title: Effective Sports Leaders | Handout date: W/C 24/9/2012 | Submission date: W/C 8/10/2012 | Leadership in Sport Outcomes Covered | Outcome | P1 | M1 | D1 | | | Achieved | | | | | | Learner declaration: The work submitted is entirely my own work. Any help or information from other sources has been acknowledged in the text. Name: Dylan Yarborough Signed: Date: 11/05/2012 Assessor comments: Resubmission Date: | Assessor signature: Date: | Learner comments: (when resubmitting, use this space to direct the tutor to where the alterations/additions can be found) | Internally verified? YES / NO | Grades agreed? YES / NO | Name: | Signed: | Date: | Assessor seen and agreed | Signed: | Date: | Assignment Scenario | You are training to become a physical education teacher and have been asked to produce some information to help new aspiring sports leaders/coaches. So know it’s over to YOU..!Task 1a: You need to describe and explain four qualities, four characteristics and four roles of an effective sports leader (P1 & M1) (page 3).Task 1b: You need...
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...Name: Alan Sugar Born: 24/03/1947 (Age: 66) From: Hackney, London Famous for: He's the man who loves to say "You're Fired!" on his hit television show, The Apprentice. Relationship status: Sir Al is married to his wife Ann. Twelve years younger than his three older siblings, Alan Sugar was the child of low-income, working-class Jews and raised in Upper Clapton Road - England. By the age of 12, he was rising at 6am every day to boil beetroots for a local ‘greengrocer’. Four years later, Sir Alan's earnings, after school and at weekends, were far better than his father, Nathan, who worked in a tailoring sweatshop. Leaving school at the age of 16, Sugar proceeded to obtain a post in which he worked briefly for the civil service as a statistician in the Ministry of Education. He also started selling car aerials and electrical goods out of a van he had bought from his £50 savings. In 1968, aged 21, he set up his own business, selling electrical products from intercoms to retractable car antennas and called it Amstrad, referring to (Alan Michael Sugar Trading). The company began as a general importer/exporter and wholesaler, but soon specialized in consumer electronics. By 1970, the first manufacturing venture was underway. He achieved lower production prices by using injection moulding plastics for hi-fi turntable covers, severely undercutting competitors who used vacuum-forming processes. Manufacturing capacity was soon expanded to include the production of audio amplifiers...
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...Alan Sugar- The Essex boy that showed ‘em all who’s boss. When Alan Sugar was 12 years old, he woke up one Monday morning thinking that he was going to be his own boss and setup his own business in the middle of what they called a recession. His father hadn’t got much money as he worked in a garment factory and decided to create Alan’s own school uniform. Alan’s dad barely could afford £13 and the Sugar family lived in a very rough area. By Alan’s standards he thought his father “wasn’t the greatest tailor in the world” and always feared that his hard earned weekly cash was going to fall onto the floor and taken by kids that took the mickey out of him. Alan hated being made to stand out amongst the crowd. However he had a keen business eye, by the time he was 15 he a few enterprises going including deliveries of ginger beer, milk and paper rounds and shifts for the bakers and local supermarket. Little did he know did he know he had begun his long career as an entrepreneur and soon to become business leader. Today, we know Lord Sugar as the witty, wise and blunt multi-millionaire with pockets that are becoming ever deeper. Lord Sugar’s worth is estimated at over £700 million and an annual turnover of £30 million. Not bad for someone who famously started with only £100 selling TV aerials from the back of van in 1969. The key to Lord Sugars wealth was formed when he setup his first formal electronics company called Amstrad which begun...
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...Drive through any given village in Bali and you’ll see vibrantly colored fighting roosters in woven cages pecking at the green-tipped grass at their feet. Come later and you’ll see the cocks taken out of their cages to be stroked and caressed by local men who sit together, enjoying the last rays of sunshine while discussing the qualities of their proud and elegant birds. Bali, like many other nations, has banned cock fighting as a cruel sport, although the practice is still allowed on the Island of the Gods for ceremonial purposes. These fighting birds are as much a part of Balinese Hindu rites as the burning of incense and giving offerings to the gods. Breeding the roosters, some of which boast feathers with a golden luster that evokes songket, takes place up in the cool, mountainous region above Gianyar. In a small hamlet called Malet, the birds are big business. Village head I Ketut Ludea says that while Malet raises about 600 roosters every year, most are sold to other communities nearby. The rest are used for local ceremonies. “In our village we must sacrifice birds before turning the soil to plant our crops, so we need around 250 birds for these ceremonies,” Ludea says. “We can sell the other 350 birds, which does not make this our most important revenue for the village, but a side job that many of us use for the education of our children.” Such children include Ledea’s 12-year-old grandniece, who studies English twice a week in nearby Tampak Siring...
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...Rachel Burgess Dr. Shawn Schulenberg PSC 207-201 After reading Geertz article, “Deep Play: Notes on the Balinese Cockfight,” I decided that I agree with the author’s idea that culture could be seen as a set of texts to be interpreted. However, for me, I believe that after considering the above; it is important to then understand the vital question of how texts are created and where do they come from? In this sense, this is where history comes into play. I believe cockfighting can be identified in many complex ways relating back to human nature itself. However, the social origin of status in Balinese society is never really discussed. It is important to decide whether or not these cockfights are metaphorical to the battles over status rather than battles over money. To my beliefs, it seemingly appears that the article could be considered slightly agnostic due to the fact that Geertz believes ones status and character can be defined through the distinguished success of their fighting cock. However, I would like to argue that this should not be taken as truth. In other words, I suggest that in the event and processes of cockfights are only symbolizing the idea of establishing power of ranks in Balinese villages. The main purpose of the article is the interpretation of different cultures. At first, Geertz was failing to conduct his research adequately due to the lack of recognition of existence that he and his wife were receiving from the people of Bali. Eventually however...
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... In the argument Norcross wrote about two different but similar stories to prove his point. In the first story a man was in an accident that had damaged his godiva gland, which means his body can no longer produce the hormone cocoamone and he can no longer taste chocolate. Knowing that humans do not produce cocoamone he finds out that puppies do when they are under intense stress and severe trauma. This man loves chocolate so much he abuses puppies to death so he can taste chocolate again. In the argument it’s clear that this mans life is not on the line if he cannot taste chocolate. He just wants to enjoy the taste of chocolate and he doesn’t seem to care that puppies are suffering for his pleasure. In the second story Norcross addresses factory raised meat that people purchase. Animals that are raised on a factory farm live in highly stressed, abusive, and cramped areas. He makes a clear point to people who would make the excuse of there one purchase making an affect. He proves to them that one out of ten thousand can safe 25 chickens lives. He clarifies that one person can start to make a difference. Norcross states in both of these situations people do not need these to survive. If they were to stop eating chocolate or factory raised meat their health would probably be better off. Machans argument is over wether or not animals should have rights or liberation. Machan talks about the morality of natural rights and the utilitarian for animals. He states...
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...LSE / Lent Term – 2015 FM421 – Applied Corporate Finance Case Assignments • You will find an Excel file with all the exhibits from the case on Moodle. • Assignments MUST be submitted before class on Moodle. • Your assignment should not exceed 5 pages including appendices. “Tottenham Hotspur” To Do 1. Read case: HBS 9-209-059: Tottenham Hotspur Plc. There is an Excel spreadsheet to help you with the base numbers. 2. Read lecture slides. Case Preparation Questions State clearly all assumptions that you make and defend their choices whenever possible. 1. Assume that Tottenham Hotspur continues in their current stadium following their current player strategy. Perform a discounted cash flow (DCF) analysis using the cash flow projections given in the case. For all CAPM calculations, use the risk-free rate given in Exhibit 1 and assume a market premium of 5%. Also assume that Tottenham’s debt has zero beta. At its current stock price of £13.80, is Tottenham fairly valued? 2. Provide an alternative valuation of Tottenham based on multiples. Compare your findings with those from Question 1 and, in the light of your results, discuss the relative advantages and disadvantages of multiples versus DCF valuation methods. 3. Using a DCF approach, evaluate each of the following decisions: a) Build the new stadium b) Sign a new striker c) Build the new stadium and sign a new striker. • Note that the past 10 years of Premiership...
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...Case Tottenham Hotspur 1a) Change in NWC = cash requirements + inventory + receivables – payables. There will be no cash requirements, because of the hint in the question excess cash should not be included so therefore change in NWC will be 1,17 + 19,99 – 64,40 = -43,24 for the year 2007. For the next years until 2020 will use the revenue growth as a measurement to calculate the NWC for the next years. The revenue growth is 9 percent per year so the NWC will grow by 9 percent per year. FCF = (Revenue – Costs – Depreciation) x (1 – tax rate) + Depreciation – Capital Expenditure – change in working capital. So when I fill in this formula I get: 71,1 – 69,1 – 2,2 x (1 – 0,35) + 2,2 – 2,26 - -43,24 = 45,79. See for the next years the last page of this document. 1b) that is because most of the football clubs won’t have a large sum of accounts receivables and have a small inventories. “Normal organizations” will have much higher accounts receivables and much bigger inventories. 1c) E(R) = RFR + βstock (Rmarket – RFR) according the case the risk free rate is 4,57% and the beta is 1,29 and the market risk premium will is given in the question 4,57% + 1,29 x 5% = 11,02 % is the expected return on equity. 1d) Cost of debt can be calculated by dividing the interest expense / amount of equity x 100%. So if we put in the numbers we get the following: (2,26/ 45,73) x 100 = 4,94%. For calculating the weighted average cost of capital after tax we use the following formula: WACC = (45...
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...Piyashi Bhattacharyya, John Freese, David Underdown Finance 7410 Case 1 – Tottenham Hotspur plc Tottenham is faced with the possibility of building a new stadium, the potential acquisition of an additional goalscorer to complement its newly acquired player, Roman Pavlyuchenko, or possibly doing both. Daniel Levy, the team’s chairman, believes that building a new stadium will “modernize the club’s match-day facilities.” He believes that the new stadium is also a “crucial component of long-run success in the Premiership, in part because the added revenues would allow the Spurs to compete more aggressively in the acquisition market for superstar international players.” Tottenham lost two of its star players to a higher-end team. The stadium project is expected to increase attendance revenue by 40 percent and sponsorship revenues by 20 percent. Signing a new goalscorer is forecasted to give Tottenham an increase of 12 net goals per season. This would increase its ranking in the Premiership, which would lead to higher revenues. It is important to conduct three separate valuations because if Tottenham acquires the new player without building a stadium the team would probably not gain much of the revenue increases that would result from the team’s performance. Acquiring a new player and building a new stadium must be valuated separately because if the club does not get a newer stadium similar to the top teams in the league, then it would only get one-quarter of the...
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...Finance 423 Spring 2014 T TH Financial Analysis and Management Dr. Kamal M. Haddad COURSE OBJECTIVES Fin 423 is designed to develop critical thinking at the individual level, and problem solving competencies at both the individual and group levels. Teamwork and group problem solving are stressed. The course provides a thorough overview of financial analysis, including relevant modern theory and practical applications. Topics include financial statement analysis, financial planning, principles of valuation, capital budgeting, capital structure, and issues in financial policy. The course gives students opportunities to apply financial theory to analyze real life situations in an uncertain environment with an incomplete data set. It is integrative in nature, with special attention to the integration of theory and managerial judgment in the process of making financial decisions. BSBA Goals BSBA students will graduate being Effective Communicators, Critical Thinkers, Able to Analyze Ethical Problems, Global in their perspective, and Knowledgeable about the essentials of business. This class contributes to those goals through its student learning outcomes. LEARNING OBJECTIVES * Use Financial Statements to evaluate firm performance. * Project Financial Statements (B/S, I/S, budgets,...
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...Technical-rational approaches to organisation (see Brooks, 2006 or 2009) are of little use to managers. The aim of this essay is to examine and discuss the different approaches to organisation such as Technical-rational approach. Evaluate the idealists and theories behind the approaches and to compare how effective they are in management and in today’s business environment. Managers use different perspectives in organisational management to maximise their workforce, to achieve business goals. Each approach is developed by a series of academics and researchers as a result of studying and understanding organisations. The technical-rational approach is a conception of the business enterprise as a mechanism for coordinating economic inputs and activities, and of the manager as a morally neutral technician engaged in a world of purely rational problem solving in the pursuit of efficiency (John et al, 2006). Principles were designed to be universally applicable and based on rational, ordered technical arrangements (Brooks, 2009). Organisations were viewed as machines and humans ‘as mere cogs within them’ (Graley, 2012). Bureaucracy, Classical school (Of Thought) and scientific management are divisions of a technical approach. Bureaucracy was founded by Max Weber a German philosopher who reported that (Brooks, 2009) people in organisations have their own well defined tasks and responsibilities. Organisations contain hierarchical structures with each developing their own rules...
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...BASE CASE ASSUMPTIONS MADE • In order to discount the free cash flow to firm (FCFF), the following formula was used: o = ∗ 1 − + − − ∆ • In order to find WACC, the following assumptions were also made for the CAPM: o Market Risk Premium = FTSE CAGR 2002-2007 - fixed risk-free (given) = 4.68% o Debt costs = Interest payment / long-term debt = 5.25% • Equity ratio = market cap / total value = 128m/182m • Debt ratio = Market value debt / total = Exhibit 2 figures (not Balance Sheet) • Net debt for all different scenarios was assumed to be the value from t=0 • NWC = Current assets07 – current liabilities07 – excess cash07 (Working Capital Turnover Ratio: 58% of sales)1 was kept constant • Terminal Value = 2020 − discounted from 2019 • Pos. NPV = GBP 188.43m • As shown on the next slide, the stock at its current pricing of GBP 13.8 is undervalued according to the DCF – it should be GBP 18.27 or GBP 17.29 depending on which net debt is used o Since the Net debt/EV ratio shown in Exh. 2 does not match the EV calculated from the balance sheet figures, both results are shown at the bottom 1 As calculated in Berk & DeMarzo. (2013). “Corporate Finance” EV appx. GBP 195m http://www.transfermarkt.de/tottenham-hotspur/startseite/verein/148, calculated with FX rate. Accessed 2016-04-02 2 Official 1 BASE CASE 188.43 Current Forecast 0 2007 Revenue 1 2008 2 2009 3 2010 4 2011 5 2012 6 2013 7 2014 ...
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