Hubert Tuillier: “I tend to consider that today, for a French club, trading income is part of traditional income”


In Sport in France, Hubert Tuilliersports economist for KPMG France, a sports consulting firm, spoke about investment funds, and considered that trading should today be considered as traditional income.

“Today, when we work with investment funds, we work with clubs, and there is a methodology that is still accepted by everyone, it is multiples in relation to turnover. Today, this is what prevails in the sector. Afterwards, the question is whether or not we integrate the income from trading. Normally, we do not integrate them, but we can consider it, especially in France, when we think of clubs which have regular income linked to the trading market, we could integrate them. I tend to consider that today, for a French club, trading income is part of traditional income. There’s nothing unhealthy about that, it’s just that we apply multiples to a level of turnover, and turnover does not include trading income. Should we integrate it, and precisely modify the multiples, that is a question we can ask today”.

Vincent Chaudelpresident of the Observatory of Sport Business, bounces on the subject, with the backdrop of the Girondins de Bordeaux.

de“It’s a lost bet for the Girondins at the moment, but it’s not that simple, otherwise everyone would come and buy their football clubs. If it were so simple everyone would try to reproduce the martingale. It’s much more complicated than that. But on the evaluation approach, there are, in general, three types of evaluation. There is that of multiples which is the most practiced, there is the stock market equivalent but we are in a sector where there are not that many clubs listed on the stock market, and finally there is the net assets reassessed. This is where we can get into the value of a club, and its social networks. When Qatar bought PSG, there were 3 million fans on the networks, and today we have exceeded the 150 million mark. Obviously for an advertiser, the brand value is no longer the same, and the creation and value of the club is no longer the same either”.

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