Tottenham Hotspur Plc Case Study Help
Build the New Stadium and Sign a New Striker:
The third option associated with the club is based onbuilding a new stadium along with signing new strikersfor the improved training of the team at the club. A detailed evaluation of the option has been carried out in order to understand the synergies of both projects. The revenues and cost of both the projects are added in order to analyze that either the club could perform both things at the same time. After performing DCF valuation, it is concluded that the club should perform both the things at the same time because the project shows a positive NPV. Furthermore, ion comparison the NPV of this project is higher than all the projects.
Recommendation:
As per the NPV analysis of all the three options i.e. building the new stadium, hire new strikers or doing both, the highest value of NPV calculated was of option three i.e. 353.67Million, whereas the second-highest value of NPV obtained was of option 1 i.e. 269.57. Considering both the highest NPVrepresenting options, it is recommended to implement option 3 demonstrating the possibility of increased revenue generation. Additionally, the implementation of option three which includes both the development of the new stadium and hiring new strikers would allow the club to remain competitive among other clubs and players in the football market segment. This would also assist the club to successfully expand the sitting area with the capacity to 60000 players.
Conclusion:
Tottenham was considered as the leader in outreach and social responsibility. The concern over increased revenue generation led to an increased focus on three strategic pillars i.e. development of a new stadium, building a new facility for practice, and consistent improvement of the club. Based on the analysis of three options,the club should perform both the things at the same time because the project shows a positive NPV.Thus, this would significantlyallow the club to remain competitive among other clubs and players in the football market segment.................................
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