Club Atletico Boca Juniors Harvard Case Solution & Analysis

Internet Websites

The club shall also allow sponsors to advertise in their websites to maximize their returns. Due to the increase in the trend of using mobile phone by majority of people, company’s website application shall also be developed for the easy access of fans. Therefore, advertisement through internet and mobile phones is an easy way for club to earn money from its sponsors.

Sponsorships

The most effective and the cheaper way of earning revenues is through pasting the logo of a brand which sponsors a team. Limited time period contracts shall be made with sponsors because as the performance of a team increases the club can renew its contract with another company who is willing to offer more for pasting the logo of its brand. In order to attract a higher number of customers through sponsors, the club shall be ethical in screening for its sponsor. An alcohol or a beer brand may not appeal to children and teenagers and would also create a bad image along with an unethical way of marketing.

Co-branding Sponsorship

Boca Junior can make contracts with the leading sports brands to place their clubs logo on their shirts, shoes, and other accessories and can sell it on their sports retail outlets. This type of branding may associate the club with leading sports brand which can provide the company with global coverage as these accessories would be sold at different sports retail outlets around the world.

Boca Junior Fan Card

Boca Junior fan card shall also be made available by the club on its official website that could provide customers a healthy discount for an entire year but with a one-time cost associated with the fan card. Annual membership fee shall also be associated with the card if a fan wishes to renew it. This would provide two monetary benefits for the club. Firstly, the company would be paid in advance for purchasing the card by its customers and with annual fee; secondly the club will get a huge attendance from the crowd. As it has been noted that Real Madrid earns a healthy amount of revenue from its crowd attendance, the club would be encouraging customers for attendance through fan card methods.

Revenue Forecast

In order to generate greater amount of revenues, it is better to develop good forecasting techniques that could enhance the growth of Boca Juniors. Managing the revenues forecasting techniques can increase the operational excellence. The revenue forecasting ideas for Boca juniors have been described below:

Managing Expenses

Evaluating the most common categories of expenses is the key to decrease the cost effect on the financial statement of the club. As the operational cost for Boca Juniors had exceeded the operating revenues in the set of 10 years, the club shall focus on limiting its fixed and variable cost. The club shall increase the expectations for its advertisement and marketing cost because normally the actual cost exceeds the forecasted cost. Due to the installing of company’s official stores, the club shall also estimate its legal and insurance cost(Brigham & Ehrhardt, 2008).

Forecasting Revenues

The revenues shall be forecasted both on the basis of conservative approach and an aggressive approach. First, Boca Juniors shall develop a conservative revenue projection which includes strict regulations and a tighter leverage upon distributing cost and resources. However, the conservative revenue projection could be reduced and converted to an aggressive approach(Brigham & Ehrhardt, 2008).

Ratio Projections

In order to make investments, companies analyze financial statements to understand the financial growth and standing of the company. Therefore, the best and preferred way to analyze financial statement is through financial ratios. Some of the mandatory financial ratiosfor Boca Juniors to determine includes gross margin, and profitability ratios. The gross margin identifies the ratio between the total direct cost and the total direct revenues generated by the company. As the current scenario is concerned for Boca Juniors, the gross margin is very low which makes the financial system of the club weaker. The profitability ratios help the company in determining how well the company has utilized their resources and converted them into profits. Long term profitability is required by the company to maximize its shareholders wealth and also to satisfy its customer without selling players to different clubs(Brigham( & Ehrhardt, 2008)...............................

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