Tottenham case HBS financials valuation

Tax rate Millions of punds Revenue Attendance Sponsorship Broadcast Merchandise Other Total Operating Costs Payroll Stadium Operating Expenses Other Total EBITDA Depreciation EBIT Interest Taxes Net Income Assets Current assets: Cash and equivalents Investments, available for sale Inventory - Merchandise Accounts Receivable Days AR Total current assets Property and equipment, net Intangible assets, net Total assets Capex maintenance Liabilities and Stockholder Equity Current liabilities: Accounts payable Days AP Long-term debt and deferred interest, net of current portion Total liabilities Total stockholders’ (deficit) equity Total liabilities and stockholders' equity P/share Check Shares Outstanding (millions of shares)

Market Capitalization P/share Cashflow NI D&A Cash from op Changes in WK CAPEX (maintenance capex?) Bank loan Total changes in cash Initial cash Ending cash FCF EBIT (1-tax) D&A Chages in WK Capex FCF Perpeuity FCF NPV/ Enterprise Value Net debt Equity P/share Net WK Growth of NWC Cnahges of wc

35% Wacc 0 1 2007 2008 17.4 19.0 15.7 17.1 28.7 31.3 5.2 5.7 7.1 7.7 74.1 80.8 9.0% 50.9 16.4 1.8 69.1 5.0 2.2 2.8 2.3 0.2 0.4

56.0 17.0 1.9 74.9 5.9 2.3 3.6 2.5 0.4 0.7

26.3 29.49 0.6 0.6 1.2 1.2 20.0 21.79 97.1 97.1 48.1 53.1 56.9 55.8 49.4 49.4 153.2 159.4 3.3

3.4

64.4 69.82 335.5 335.5 43.1 43.1 107.5 112.9 45.7 46.5 153.2 159.4 16.5 17.2 0.0 0.0 9.3

9.3

10.25% 2 2009 20.7 18.7 34.1 6.2 8.4 88.0 9.0% 61.6 17.7 2.0 81.3 6.7 2.4 4.4 2.7 0.6 1.1

3 4 5 2010 2011 2012 22.5 24.6 26.8 20.3 22.2 24.2 37.2 40.5 44.2 6.7 7.3 8.0 9.2 10.0 10.9 96.0 104.6 114.0 9.0% 9.0% 9.0%

6 2013 29.2 26.3 48.1 8.7 11.9 124.3 9.0%

7 2014 31.8 28.7 52.5 9.5 13.0 135.5 9.0%

8 2015 34.7 31.3 57.2 10.4 14.2 147.7 9.0%

9 2016 37.8 34.1 62.3 11.3 15.4 160.9 9.0%

67.8 18.4 2.0 88.2 7.7 2.5 5.3 2.9 0.8 1.5

90.2 20.7 2.3 113.2 11.1 2.8 8.3 3.8 1.6 2.9

99.2 21.6 2.4 123.2 12.3 2.9 9.4 4.1 1.9 3.4

109.2 22.4 2.5 134.0 13.6 3.0 10.6 4.5 2.1 4.0

120.1 23.3 2.6 145.9 15.0 3.1 11.9 4.9 2.4 4.5

33.37 37.96 0.6 0.6 1.2 1.2 23.75 25.88 97.1 97.1 58.9 65.6 58.1 59.4 49.4 49.4 166.4 174.3

74.6 19.2 2.1 95.8 8.8 2.6 6.2 3.2 1.1 1.9

82.0 19.9 2.2 104.1 9.9 2.7 7.2 3.5 1.3 2.4

43.37 0.6 1.2 28.22 97.1 73.4 60.6 49.4 183.4

49.65 0.6 1.2 30.76 97.1 82.2 62.0 49.4 193.5

56.87 0.6 1.2 33.52 97.1 92.2 63.4 49.4 204.9

65.09 0.6 1.2 36.54 97.1 103.4 64.8 49.4 217.6

74.42 0.6 1.2 39.83 97.1 116.0 66.3 49.4 231.7

84.88 0.6 1.2 43.41 97.1 130.1 67.9 49.4 247.3

3.7

3.9

4.0

4.2

4.3

4.5

4.7

75.76 82.23 335.5 335.5 43.1 43.1 118.8 125.3 47.5 49.0 166.4 174.3 17.9 18.8 0.0 0.0

89.31 335.5 43.1 132.4 51.0 183.4 19.7 0.0

97.05 335.5 43.1 140.1 53.4 193.5 20.8 0.0

105.52 335.5 43.1 148.6 56.3 204.9 22.1 0.0

114.77 335.5 43.1 157.9 59.8 217.6 23.4 0.0

124.92 335.5 43.1 168.0 63.7 231.7 24.9 0.0

136.01 335.5 43.1 179.1 68.2 247.3 26.6 0.0

9.3

9.3

9.3

9.3

9.3

9.3

3.6

9.3

9.3

128.2 13.80

0.4 2.2 2.6

0.7 2.3 3.0

1.1 2.4 3.5

1.5 2.5 4.0

1.9 2.6 4.5

2.4 2.7 5.1

2.9 2.8 5.7

3.4 2.9 6.3

4.0 3.0 7.0

4.5 3.1 7.6

3.6 -3.43 0.0

4.0 -3.57 0.0

4.3 -3.71 0.0

4.8 -3.86 0.0

5.2 -4.01 0.0

5.7 -4.18 0.0

6.2 -4.34 0.0

6.9 -4.52 0.0

7.5 -4.70 0.0

3.9 4.6 29.49 33.37 33.37 37.96

5.4 37.96 43.37

6.3 43.37 49.65

7.2 49.65 56.87

8.2 56.87 65.09

9.3 65.09 74.42

10.5 74.42 84.88

4.0 2.6 (5.0) 3.9 7.8

4.7 2.7 (5.5) 4.0 8.8

5.4 2.8 (6.0) 4.2 10.0

6.1 2.9 (6.5) 4.3 11.2

6.9 3.0 (7.1) 4.5 12.5

7.7 3.1 (7.7) 4.7 13.9

3.2 26.3 29.49

2.3 2.3 (3.9) 3.4 5.1 5.06

2.8 2.4 (4.2) 3.6 5.9 5.89

3.4 2.5 (4.6) 3.7 6.8 6.79

7.77

8.84

9.97

-61.0 9.0% -5.0

-66.5 9.0% -5.5

-72.5 9.0% -6.0

11.20

12.50

13.89

$133.9 $16.16 $117.77 $12.68 Market is paying premium -43.2

-47.1 9.0% -3.9

-51.4 9.0% -4.2

-56.0 9.0% -4.6

-79.0 9.0% -6.5

-86.2 9.0% -7.1

-93.9 9.0% -7.7

10 2017 41.2 37.2 67.9 12.3 16.8 175.4 9.0%

11 2018 44.9 40.5 74.1 13.4 18.3 191.2 9.0%

12 2019 48.9 44.2 80.7 14.6 20.0 208.4 9.0%

13 2020 Growth Vertical analysis 50.9 45.9 84.0 8.6% 15.2 20.8 216.8 8.6% 100.0% 4.0%

132.1 24.3 2.7 159.0 16.4 3.3 13.2 5.4 2.7 5.1

145.3 25.2 2.8 173.3 17.9 3.4 14.5 5.8 3.1 5.7

159.8 26.2 2.9 188.9 19.5 3.5 16.0 6.4 3.4 6.3

166.2 27.3 3.0 196.5 20.3 3.7 16.6 6.6 3.5 6.5

96.59 0.6 1.2 47.32 97.1 145.7 69.5 49.4 264.6

109.62 0.6 1.2 51.58 97.1 163.0 71.2 49.4 283.6

124.04 0.6 1.2 56.23 97.1 182.1 73.0 49.4 304.4

133.51 0.6 1.2 58.48 97.1 193.8 74.8 49.4 317.9

4.9

5.1

5.3

5.5

148.18 335.5 43.1 191.3 73.3 264.6 28.5 0.0

161.49 335.5 43.1 204.6 79.0 283.6 30.5 0.0

176.07 335.5 43.1 219.2 85.2 304.4 32.8 0.0

183.12 335.5 43.1 226.2 91.7 317.9 34.2 0.0

9.3

9.3

9.3

9.3

68.7% 22.1% 2.4% 93.3% 6.7% 3.0% 3.8% 3.0% 0.3% 0.5%

100.0%

75.3% 13.8% 1.5% 90.6% 9.4% 1.9% 7.5% 3.0% 1.6% 2.9%

5.1 3.3 8.3

5.7 3.4 9.0

6.3 3.5 9.8

6.5 3.7 10.2

8.3 -4.88 0.0

9.1 -5.08 0.0

9.9 -5.28 0.0

4.8 -5.49 0.0

11.7 13.0 14.4 84.88 96.59 109.62 96.59 109.62 124.04

9.5 124.04 133.51

8.6 3.3 (8.5) 4.9 15.4

9.5 3.4 (9.2) 5.1 17.0

15.39

10.4 10.8 3.5 3.7 (10.0) (4.9) 5.3 5.5 18.7 13.8 221.359 Por q del 2020 en adelante crece 4% constante 16.97 240.03 El primer año del terminal value es el 13

-102.4 9.0% -8.5

-111.6 9.0% -9.2

-121.6 9.0% -10.0

-126.5 4.0% -4.9

100.0%

100.0%

100.0%

76.0% 13.2% 1.4% 90.6% 9.4% 1.8% 7.6% 3.0% 1.6% 3.0%

76.7% 12.6% 1.4% 90.6% 9.4% 1.7% 7.7% 3.1% 1.6% 3.0%

76.7% 12.6% 1.4% 90.6% 9.4% 1.7% 7.7% 3.0% 1.6% 3.0%

Tax rate Millions of punds Revenue Attendance Sponsorship Broadcast Merchandise Other Total Operating Costs Payroll Stadium Operating Expense Other Total EBITDA Depreciation dep stadium EBIT Interest Taxes Net Income

35% Wacc 0 1 2007 2008 17.4 19.0 15.7 17.1 28.7 31.3 5.2 5.7 7.1 7.7 74.1 80.8

10% 2 2009 20.7 18.7 34.1 6.2 8.4 88.0

50.9 16.4 1.8 69.1 5.0 2.2

56.0 17.0 1.9 74.9 5.9 2.3

61.6 17.7 2.0 81.3 6.8 2.4

3.6 2.5 0.4 0.7

4.4 2.7 0.6 1.1

2.8 2.3 0.2 0.4

3 2010 28.9 22.4 37.2 6.7 9.2 104.4

4 2011 31.5 24.4 40.5 7.3 10.0 113.8

67.8 20.2 2.0 90.0 14.4 2.5 25.0 (13.1) 2.9 (5.6) (10.4)

74.6 21.0 2.1 97.7 16.1 2.6 25.0 (11.4) 3.2 (5.1) (9.5)

Assets Current assets: Cash and equivalents Investments, available fo Inventory - Merchandise Accounts Receivable Days AR Total current assets Property and equipment, net Intangible assets, net Total assets Maintenace capex Liabilities and Stockholder Equity Current liabilities: Accounts payable Days AP Long-term debt and deferred Total liabilities Total stockholders’ (de Total liabilities and stock P/share Check

26.3 0.6 1.2 20.0 97.1 48.1 55.8 49.4 153.2

154.49 0.6 1.2 21.79 97.1 178.1 181.9 49.4 409.3

33.37 0.6 1.2 23.75 97.1 58.9 308.1 49.4 416.4

25.44 0.6 1.2 28.17 97.1 55.4 284.4 49.4 389.1

19.26 0.6 1.2 30.70 97.1 51.8 260.6 49.4 361.7

3.3

3.4

3.6

3.7

3.9

64.4 335.5 43.1 107.5 45.7 153.2 16.5 0.0

69.82 335.5 293.1 362.9 46.4 409.3 44.1 0.0

75.76 335.5 293.1 368.8 47.5 416.4 44.8 0.0

83.88 335.5 293.1 377.0 37.1 414.1 44.6 25.0

91.03 335.5 293.1 384.1 27.6 411.7 44.3 50.0

Shares Outstanding (millions Market Capitalization P/share Cashflow NI D&A Cash from op

9.3 128.2 13.80

0.4 2.2 2.6

Changes in WK CAPEX (maintenance capex?) Bank loan Total changes in cash Initial cash Ending cash FCF EBIT (1-tax) D&A Chages in WK Capex FCF Perpeuity FCF NPV P/share

-$125.8 -$13.54

9.3

0.7 2.3 3.0

9.3

1.1 2.4 3.5

9.3

9.3

(10.4) 2.5 (7.9)

(9.5) 2.6 (6.9)

3.6 -128.4 250.0

4.0 -128.6 0.0

3.7 -3.7 0.0

4.6 -3.9 0.0

128.2 26.3 154.49

(121.1) 154.49 33.37

(7.9) 33.37 25.44

(6.2) 25.44 19.26

2.3 2.3 3.6 -128.4 (120.2)

2.8 2.4 4.0 -128.6 (119.4)

(8.5) 2.5 3.7 -3.7 (6.0)

(7.4) 2.6 4.6 -3.9 (4.1)

(120.2)

(119.4)

(6.0)

(4.1)

5 2012 34.4 26.6 44.2 8.0 10.9 124.1

6 2013 37.5 29.0 48.1 8.7 11.9 135.2

7 2014 40.8 31.6 52.5 9.5 13.0 147.4

8 2015 44.5 34.4 57.2 10.4 14.2 160.7

9 2016 48.5 37.5 62.3 11.3 15.4 175.1

10 2017 52.9 40.9 67.9 12.3 16.8 190.9

11 2018 57.7 44.6 74.1 13.4 18.3 208.1

12 2019 62.9 48.6 80.7 14.6 20.0 226.8

82.0 21.8 2.2 106.0 18.0 2.7 25.0 (9.7) 3.5 (4.6) (8.5)

90.2 22.7 2.3 115.2 20.0 2.8 25.0 (7.8) 3.8 (4.0) (7.5)

99.2 23.6 2.4 125.2 22.2 2.9 25.0 (5.7) 4.1 (3.5) (6.4)

109.2 24.6 2.5 136.2 24.5 3.0 25.0 (3.5) 4.5 (2.8) (5.2)

120.1 25.6 2.6 148.2 26.9 3.1 25.0 (1.2) 4.9 (2.1) (4.0)

132.1 26.6 2.7 161.3 29.6 3.3 25.0 1.3 5.4 (1.4) (2.6)

145.3 27.6 2.8 175.7 32.4 3.4 25.0 4.0 5.8 (0.7) (1.2)

159.8 28.7 2.9 191.4 35.3 3.5 25.0 6.8 6.4 0.2 0.3

14.41 0.6 1.2 33.47 97.1 49.7 237.0 49.4 336.0

11.03 0.6 1.2 36.48 97.1 49.3 213.4 49.4 312.0

9.22 0.6 1.2 39.76 97.1 50.8 189.8 49.4 290.0

9.13 0.6 1.2 43.34 97.1 54.3 166.3 49.4 269.9

10.87 0.6 1.2 47.24 97.1 59.9 142.9 49.4 252.1

14.59 0.6 1.2 51.49 97.1 67.9 119.5 49.4 236.7

20.45 0.6 1.2 56.13 97.1 78.4 96.2 49.4 223.9

28.61 0.6 1.2 61.18 97.1 91.6 73.0 49.4 213.9

4.0

4.2

4.3

4.5

4.7

4.9

5.1

5.3

98.83 335.5 293.1 391.9 19.1 411.0 44.2 75.0

107.37 335.5 293.1 400.5 11.6 412.0 44.4 100.0

116.71 335.5 293.1 409.8 5.2 415.0 44.7 125.0

126.93 335.5 293.1 420.0 -0.1 419.9 45.2 150.0

138.11 335.5 293.1 431.2 -4.0 427.1 46.0 175.0

150.35 335.5 293.1 443.4 -6.7 436.7 47.0 200.0

163.75 335.5 293.1 456.8 -7.9 448.9 48.3 225.0

178.42 335.5 293.1 471.5 -7.6 463.9 49.9 250.0

9.3

9.3

9.3

9.3

9.3

9.3

9.3

9.3

(8.5) 2.7 (5.9)

(7.5) 2.8 (4.7)

(6.4) 2.9 (3.5)

(5.2) 3.0 (2.2)

(4.0) 3.1 (0.8)

(2.6) 3.3 0.6

(1.2) 3.4 2.2

0.3 3.5 3.8

5.0 -4.0 0.0

5.5 -4.2 0.0

6.1 -4.3 0.0

6.6 -4.5 0.0

7.3 -4.7 0.0

8.0 -4.9 0.0

8.8 -5.1 0.0

9.6 -5.3 0.0

(4.8) 19.26 14.41

(3.4) 14.41 11.03

(1.8) 11.03 9.22

(0.1) 9.22 9.13

1.7 9.13 10.87

3.7 10.87 14.59

5.9 14.59 20.45

8.2 20.45 28.61

(6.3) 2.7 5.0 -4.0 (2.6)

(5.1) 2.8 5.5 -4.2 (0.9)

(3.7) 2.9 6.1 -4.3 0.9

(2.3) 3.0 6.6 -4.5 2.8

(0.8) 3.1 7.3 -4.7 4.9

0.8 3.3 8.0 -4.9 7.2

2.6 3.4 8.8 -5.1 9.7

4.4 3.5 9.6 -5.3 12.3

(2.6)

(0.9)

0.9

2.8

4.9

7.2

9.7

12.3

13 2020 Growth 65.4 50.6 84.0 8.6% 15.2 20.8 235.8 9.3%

166.2 29.9 3.0 199.1 36.7 3.7 33.1 6.6 9.3 17.2

48.67 0.6 1.2 63.62 97.1 114.1 74.8 49.4 238.2 5.5

185.56 335.5 293.1 478.6 9.6 488.2 52.6 250.0

9.3

17.2 3.7 20.9 4.7 -5.5 0.0 20.1 28.61 48.67

21.5 3.7 4.7 -5.5 24.4 243.6 268.0