Understanding the value
of a player portfolio
Helping a private equity investor understand the future value in the assets of a player representation agency
Challenge
A private equity investor was exploring an investment in a significant European player representation agency, and wanted to better understand the risks and opportunities relating to the agency’s portfolio of players.
Solution
We conducted a brief consultation and reviewed key commercial documents to fully understand the agency revenue model. This enabled us to build a model to predict the future revenue value of each individual player in the agency’s portfolio.
Through capturing a list of the entire stable of player assets we allocated each player to a ‘band’ based on the existing and expected future profitability. We also assessed the potential of individual players to move up into higher profitability bands based on their performance.
In addition, we analysed the agency’s acquisition strategy, providing a perspective on the agency’s ability to attract and retain high value players, and identifying any key person risk relating to individual players or agents on which the agency was reliant.
Impact
Our work enabled the investor to better understand the value of what they were purchasing. Following our work, they decided not to complete the deal.
“The analysis provided was a statistical evaluation of their current portfolio. It was helpful to understand some of the nuanced market factors / specific club/country factors. We enjoyed working with your team and appreciate your assessment”
