top of page

Methodology Overview:
Capturing Sports

Revenue

Modern sports turnover is driven by various revenue channels. SFI classifies these distinct streams and applies bespoke multiples to each sector.

 

Furthermore, to mitigate the extreme revenue fluctuations in sports, SFI introduced a long-term weighted average to provide a smoothed, investment-grade view of a team's true earning power.

Heritage & Success

The premium of iconic franchises like Real Madrid or Scuderia Ferrari are driven by their heritage and legacy, the ultimate form of sporting goodwill. SFI’s methodology quantifies this prestige as a structural value driver.

 

Conversely, for emerging teams, our framework captures modern success and growth optionality, providing investors with a forward-looking valuation.

Gemini_Generated_Image_txd0i9txd0i9txd0.png

Global Reach & Brand Loyalty

As globalisation of sports erases geographical barriers, allowing a fan in Seoul to watch live Old Firm Derby in Glasgow, global reach has become the definitive KPI for commercial valuation. SFI quantifies this borderless expansion by benchmarking social media impact, capturing real-time international brand equity.

​

By quantifying recurring consumer behavior, SFI identifies the rigidity of a club’s demand curve

Stadium & Infrastructures

Property, Plant & Equipment (PP&E) is a cornerstone of sports organisation balance sheets. Every sports entity maintains a unique relationship with its infrastructure.

 

SFI provides analysis of specialised real estate assets to ensure their intrinsic value is accurately reflected. As these assets evolve into multi-purpose, sustainable venues, SFI utilises a bespoke Discounted Cash Flow (DCF) model to capture their fair value.

Liquidity

Due to their highly specialised nature and substantial transaction sizes, sports assets are characterized by low liquidity.

 

SFI evaluates liquidity risk by analysing demographic reach, behavioral loyalty, and governance. Then apply a tailored Discount for Lack of Marketability (DLOM) to reflect the specific friction and capital requirements associated with an exit or stake sale.

Global Reach & Brand Loyalty

As globalisation of sports erases geographical barriers, allowing a fan in Seoul to watch live in Glasgow. Global reach has become the definitive KPI for commercial valuation. SFI quantifies this borderless expansion by benchmarking social media impact, capturing real-time international brand equity.

​

By quantifying recurring consumer behavior, SFI identifies the rigidity of a club’s demand curve

Global Reach & Brand Loyalty

As globalisation of sports erases geographical barriers, allowing a fan in Seoul to watch live in Glasgow. Global reach has become the definitive KPI for commercial valuation. SFI quantifies this borderless expansion by benchmarking social media impact, capturing real-time international brand equity.

​

By quantifying recurring consumer behavior, SFI identifies the rigidity of a club’s demand curve

bottom of page