Making an informed
investment decisions
Helping an investor better understand the business of owning and running a football club.
Challenge
Prior to purchasing Everton Football Club, Farhad Moshiri wanted to fully understand the opportunities and risks associated with the purchase, particularly in the area of sporting performance to understand the future investment required to achieve his aims.
Solution
Leveraging our Intelligence Engine and proprietary performance models, we conducted a detailed analysis of the club’s sporting performance.
The first goal was to understand the level of investment required for the club to achieve Mr Moshiri’s performance objectives. Through simulating various different spending scenarios both for Everton and other Premier League clubs, we were able to identify what would be necessary to increase the chances of the club qualifying for the Champions League.
The second goal was to identify the level of improvement required in the existing playing squad. We therefore analysed the Everton team and identified the key strengths and weaknesses, quantified the investment required to improve performance to the levels necessary and highlighted the opportunities to fund this investment through the profitable sale of existing players. In addition, we conducted an in-depth analysis of the coaching staff to assess their performance and appropriateness to help deliver the long term ambitions of the new owner.
Impact
The due diligence work helped to build confidence in the deal and what would be required post-acquisition, helping to limit ambiguity on what would be needed post-acquisition. The deal duly completed in March 2016.
“The Everton deal is a great example of a new, more tailored, approach to investments in sport. The Buyer went beyond the traditional industry agnostic M&A approach in assembling a team of specialists to advise on his investment in the football club. The approach produced a great result.”
