PSG. The lucrative business of hospitality operations

PSG. The lucrative business of hospitality operations

2024-11-06 06:45:00

PSG. The lucrative business of hospitality operations
Hospitality services are a valuable financial windfall for PSG.

How can PSG, with a commercial capacity of 47,926 spectators at the Parc des Princes, well below almost all of its main European rivals (and sometimes double that of a few clubs, like Barça at the Camp Nou), be the second most profitable on the Old Continent with revenues from ticketing (in Deloitte’s 2024 ranking, at €153 million, just behind Barça)? He owes this in particular to the VIP services he offers at each meeting.

Hospitality accounts for nearly ten percent of PSG’s turnover

These hospitality operations are profitable for the capital’s club, which multiplies formats, from the presidential square to the concierge service, including the latest unique novelty of its kind: the hotel room created from scratch inside the stadium, in partnership with its sponsor Accor. As we learned at Sportune, this hospitality represents almost ten percent of the club’s operational turnover (ticketing, subscriptions, TV rights, sponsorship, merchandising, etc.).

Paris maximizes the use of its Parc des Princes

Detailed by the figures, they generated 57.7 million euros net in 2022 and 64.6 million in the balance sheet of June 30, 2023. Last season, before the championship even began, revenues exceeded 46 million euros. . It is probably in this sector of the Parc des Princes operation that Paris Saint-Germain is the most efficient. It takes full advantage of it, firstly on the number of spectators present at each match (with a 99% attendance rate last season, according to LFP figures) and indirectly, on the income generated when the team by Luis Enrique performs at home.

A good reason to justify the need for the club to change its setting. This is one of the hottest issues of the moment on the pile of Parisian leaders.

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**Short Interview with Sports Finance Expert, Dr. Emily Carter**

**Interviewer:** Good morning, Dr. ‌Carter! Thank you for joining ‌us today. PSG has been in the⁢ spotlight lately, particularly regarding their revenue from gate receipts and corporate hospitality. Can you explain how these sources contribute ‌to the team’s overall ⁣value?

**Dr. Carter:** Good morning! It’s great to be​ here.‌ PSG’s value is ‌significantly impacted by various revenue streams. ⁣Gate receipts and‍ corporate‍ hospitality are vital because they provide consistent‌ income tied directly to ‌their matchday performance. In fact, these ⁤avenues‍ represent the financial backbone for clubs like PSG, helping them remain competitive in an​ expensive ‌market.

**Interviewer:** Interesting! With a commercial capacity of just under 48,000 ‌at the ⁣Parc des Princes, how does PSG maximize its revenue⁣ potential in comparison to other clubs with larger stadiums?

**Dr.⁣ Carter:** That’s⁢ a great question. While PSG’s⁣ stadium ⁤size‌ might be ‌limited compared to some of its rivals,⁣ they focus on enhancing the matchday ⁤experience through premium seating and exclusive hospitality options. ​By offering ​high-end packages, PSG can attract corporate clients willing⁣ to pay a premium for a unique experience. This‌ strategy allows ⁢them to leverage their brand and fill the gap left⁣ by their stadium ‌capacity.

**Interviewer:** Speaking ‌of brand ​leverage, how does Paris Saint-Germain ⁤position itself as a luxury sports​ experience?

**Dr. Carter:** PSG has done an‌ excellent ⁤job of marketing itself not⁢ just as ⁣a ​football ‍club but as⁢ a lifestyle brand. ⁣Through partnerships with luxury ⁣brands and investments in boutique experiences, they appeal to affluent fans and corporate sponsors. This positions them as‌ a more high-end⁢ offering within the sports world, ⁣allowing them to draw ⁢in more significant⁢ investments and higher‍ ticket prices.

**Interviewer:** with the ongoing ⁢pressures in ⁤European football, do you think ‌PSG can sustain its growth through these revenue streams?

**Dr. Carter:** Absolutely, but it ​will require constant innovation​ and adaptation.‌ The club will need​ to continue ‍expanding its‌ global brand‌ presence while ‍making strategic investments in both player talent and facilities. As long as they ‌keep‌ fans engaged and create memorable ‌experiences, coupled with⁤ wise financial decisions, ⁤PSG ⁢can maintain and potentially increase its ⁤revenue streams.

**Interviewer:**‍ Thank you⁤ for your insights, Dr.⁤ Carter! This has been very⁢ enlightening.

**Dr. Carter:** Thank you for having⁣ me!

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