A Messi Decision
#Media & Entertainment
#Sports and Entertainment
Practice this intermediate merger & acquisition case interview question from BCG in the Media & Entertainment sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
The case focuses on valuing a high-profile asset (Lionel Messi) and assessing the financial viability of acquiring him. It blends asset valuation techniques (comparable players) with a detailed ROI calculation involving multiple revenue streams, reflecting a common challenge in the sports and entertainment industry.
Estimated Time
26 minutes
Difficulty
Medium
Source
Darden
48
/ 100
Your client is the CEO of a major English soccer team. He’s called you while brimming with excitement after receiving news that Lionel Messi was looking for a new team. Players of Messi’s quality rarely became available, and would surely improve any team. However, with COVID-19 restricting budgets, money would be tight and would need to generate a return. He would like you to figure out what the right amount of money to offer would be.
Clarifying Information
- What is the team’s goal? To win the European Championship within 3 seasons. Due to recent financial restrictions, all of their player acquisitions must be offset with new revenue within 5 years.
- How do soccer teams acquire players? In soccer transfers, the acquiring team buys out the new player for an agreed upon fee. After they pay that fee, they then agree a new annual contract with the player.
- How does the team make money? If asked this question, have the candidate brainstorm revenue streams. Full guidance appears later on.
- What is soccer? Soccer is a global sport where a team strives to score more goals then their opponent.
- How good is Messi? He is in the conversation for greatest of all time. He contributed (scored or assisted) 55 goals last season.
- How old is Messi? He is 35 years old.