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, employing 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. Our methodology quantifies this prestige as a structural value driver while capturing modern success and growth optionality for emerging teams.
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. We benchmark social media impact, capturing real-time international brand equity, and identify the rigidity of a club's demand curve.
Stadium & Infrastructures
Property, Plant & Equipment (PP&E) is a cornerstone of sports organisation balance sheets. SFI analyses these specialised real estate assets and applies a bespoke Discounted Cash Flow (DCF) model.
Liquidity
Due to their highly specialised nature and substantial transaction sizes, sports assets are characterised by low liquidity. We apply a tailored Discount for Lack of Marketability (DLOM).