Research On The Valuation Of The Professional Football Club

With the vigorous development of China's economy,China's sports industry is slowly rising with the international trend.In the 1990 s,professional sports began to enter the history of China with the opportunity of professional football reform.Professional sports clubs,which are the basic units of professional sports,are also gradually developing.More and more sports industries are becoming commercialized around the world,especially professional football clubs have become the new investment target of the capital market.How to evaluate the value of professional football clubs has become a topic of concern for many scholars and institutions.However,the development of the domestic football industry is lagging behind,and all aspects of research are relatively lacking.Most of the relevant materials are limited to the theoretical research of professional football clubs,but have not risen to practical significance.Under this circumstance,how to establish a reasonable value evaluation model of a more perfect professional football club at the practical level,and derive the overall commercial value of a professional football club based on market value.For the development of domestic football industry and other sports industry is a boost.This study first introduces the concept and development process of professional football clubs,and analyzes its operation and profit model by a highly developed European professional football club.After conducting the analysis of the applicability of the traditional enterprise value evaluation model for professional football clubs,the author selected the income method as the evaluation method of the value of professional football clubs.Then the author combines the characteristics of the football industry,discusses the life cycle of professional football clubs,analyzes the factors affecting the value of professional football clubs,and finally expounds the method of determining the discount rate in this income model.In the case study section,this study selected a representative Italian traditional giant--Juventus Football Club S.P.A as a case study object.Through the arena performance and financial data of the football club's in the past year,and combined with the changes in the operation of the club have reasonably predicted The next five years' free cash flow of the team.After determining the income period of the evaluation and the applicable discount rate,the enterprise value of the football club is obtained.This case is expected from an verification angle to illustrate the feasibility and rationality of the above research conclusions.