How did we get the yellow highlighted numbers.
BUILD NEW STADIUM Current Forecast 0 1 2 4 5 6 7 8 9 10 13 2011 2013 2014 40.85 Revenue Attendance Sponsorship Broadcast Merchandise Other Total Revenue 2007 17.40 15.70 28.70 5.20 7.10 74.10 2008 18.97 17.11 31.28 5.67 7.74 80.77 2009 20.67 18.65 34.10 6.18 8.44 88.04 3 2010 31.55 24.40 37.17 6.73 9.19 34.39 26.59 40.51 7.34 10.02 118.86 2012 37.48 28.99 44.16 8.00 10.92 129.55 31.60 48.13 8.72 11.91 141.21 44.53 34.44 52.46 9.51 12.98 153.92 2015 48.54 37.54 57.19 10.36 14.15 2016 52.91 40.92 62.33 11.29 15.42 2017 57.67 44.60 67.94 12.31 16.81 199.33 11 2018 62.86 48.62 74.06 13.42 18.32 217.27 12 2019 68.52 52.99 80.72 14.63 19.97 236.83 2020 71.26 55.11 83.95 15.21 20.77 246.30 109.04 167.77 182.87 Operating costs Payroll Stadium Operatii Other Total Operating 50.92 16.38 1.80 69.10 56.01 17.04 1.87 74.92 61.61 17.72 1.95 81.28 67.77 21.00 2.02 90.80 74.55 21.85 2.11 98.50 82.01 22.72 2.19 106.92 90.21 23.63 2.28 116.11 99.23 24.57 2.37 126.17 109.15 25.56 2.46 137.17 120.07 26.58 2.56 149.21 132.07 27.64 2.66 162.38 145.28 28.75 2.77 176.80 159.81 29.90 2.88 192.59 166.20 31.09 3.00 200.29 EBITDA Depreciation EBIT 5.00 2.20 2.80 2.26 5.85 2.29 3.56 6.76 2.38 4.38 2.69 0.59 1.10 18.24 2.47 15.77 2.93 4.49 8.34 20.35 2.57 17.78 3.19 5.11 9.49 22.64 2.68 19.96 3.48 5.77 10.71 25.10 2.78 22.32 3.79 27.75 2.90 24.85 4.13 7.25 13.47 30.60 3.01 27.59 4.50 8.08 15.01 33.67 3.13 30.54 4.91 8.97 16.66 36.95 3.26 33.69 5.35 9.92 18.42 40.47 3.39 37.08 5.83 10.94 20.31 44.24 3.52 40.72 6.36 12.03 22.33 46.01 3.66 42.35 6.61 12.51 23.23 2.46 Interest Taxes Net Income 0.19 0.35 0.38 0.71 6.49 12.04 DISCOUNTED CASH FLOW MODEL OF NEW STADIUM 20.35 22.64 33.67 EBITDA Tax at 35% NOPAT 5.85 2.05 6.76 2.37 4.39 18.24 6.38 - 11.85 27.75 9.71 25.10 8.78 16.31 30.60 10.71 36.95 12.93 40.47 14.17 7.12 13.23 7.92 14.71 11.78 21.88 44.24 15.48 28.76 46.01 16.10 29.91 3.80 18.04 19.89 24.02 26.31 6.25 8.81 5.54 5.49 Change in WC Less:CAPEX Add:Depreciation Free Cash Flow (FCF) 4.01 3.90 128.43 0.80 119.93 4.25 128.57 0.83 119.09 5.73 3.86 9.65 12.26 3.71 9.62 30.02 6.81 4.18 9.72 28.67 7.43 4.34 9.76 30.89 8.09 4.52 9.80 33.27 4.70 9.85 9.61 4.88 9.89 38.63 10.48 5.08 9.94 41.65 11.42 5.28 9.98 44.87 9.69 1.28 24.75 26.64 35.85 30.03 499.65 Terminal Value Discount Rate Discount factor PV Cash Flows 10.25% 1.0000 0.9070 0.6768 0.6139 0.5568 0.3418 0.8227 97.98 0.7462 22.40 0.5051 15.60 0.4581 15.24 0.4155 14.90 0.3769 14.56 0.3101 168.84 108.78 16.75 16.35 15.96 14.24 Scenario 108.08 Scenario 159.24 Variance 51.15 Intrinsic Value Enterprise Value Plus: Cash Less: Debt Equity Value Number of shar Price per share 48.08 64.40 142.45 50.68 91.76 9.29 9.88 15.33 5.46 30.03 Finding Terminal Value Perpetuity Growth Model FCF @ t=2020 Terminal UFCF Growth Rate WACC Terminal Value 4% 10.25% 499.65 BUILD NEW STADIUM Current Forecast 0 1 2 4 5 6 7 8 9 10 13 2011 2013 2014 40.85 Revenue Attendance Sponsorship Broadcast Merchandise Other Total Revenue 2007 17.40 15.70 28.70 5.20 7.10 74.10 2008 18.97 17.11 31.28 5.67 7.74 80.77 2009 20.67 18.65 34.10 6.18 8.44 88.04 3 2010 31.55 24.40 37.17 6.73 9.19 34.39 26.59 40.51 7.34 10.02 118.86 2012 37.48 28.99 44.16 8.00 10.92 129.55 31.60 48.13 8.72 11.91 141.21 44.53 34.44 52.46 9.51 12.98 153.92 2015 48.54 37.54 57.19 10.36 14.15 2016 52.91 40.92 62.33 11.29 15.42 2017 57.67 44.60 67.94 12.31 16.81 199.33 11 2018 62.86 48.62 74.06 13.42 18.32 217.27 12 2019 68.52 52.99 80.72 14.63 19.97 236.83 2020 71.26 55.11 83.95 15.21 20.77 246.30 109.04 167.77 182.87 Operating costs Payroll Stadium Operatii Other Total Operating 50.92 16.38 1.80 69.10 56.01 17.04 1.87 74.92 61.61 17.72 1.95 81.28 67.77 21.00 2.02 90.80 74.55 21.85 2.11 98.50 82.01 22.72 2.19 106.92 90.21 23.63 2.28 116.11 99.23 24.57 2.37 126.17 109.15 25.56 2.46 137.17 120.07 26.58 2.56 149.21 132.07 27.64 2.66 162.38 145.28 28.75 2.77 176.80 159.81 29.90 2.88 192.59 166.20 31.09 3.00 200.29 EBITDA Depreciation EBIT 5.00 2.20 2.80 2.26 5.85 2.29 3.56 6.76 2.38 4.38 2.69 0.59 1.10 18.24 2.47 15.77 2.93 4.49 8.34 20.35 2.57 17.78 3.19 5.11 9.49 22.64 2.68 19.96 3.48 5.77 10.71 25.10 2.78 22.32 3.79 27.75 2.90 24.85 4.13 7.25 13.47 30.60 3.01 27.59 4.50 8.08 15.01 33.67 3.13 30.54 4.91 8.97 16.66 36.95 3.26 33.69 5.35 9.92 18.42 40.47 3.39 37.08 5.83 10.94 20.31 44.24 3.52 40.72 6.36 12.03 22.33 46.01 3.66 42.35 6.61 12.51 23.23 2.46 Interest Taxes Net Income 0.19 0.35 0.38 0.71 6.49 12.04 DISCOUNTED CASH FLOW MODEL OF NEW STADIUM 20.35 22.64 33.67 EBITDA Tax at 35% NOPAT 5.85 2.05 6.76 2.37 4.39 18.24 6.38 - 11.85 27.75 9.71 25.10 8.78 16.31 30.60 10.71 36.95 12.93 40.47 14.17 7.12 13.23 7.92 14.71 11.78 21.88 44.24 15.48 28.76 46.01 16.10 29.91 3.80 18.04 19.89 24.02 26.31 6.25 8.81 5.54 5.49 Change in WC Less:CAPEX Add:Depreciation Free Cash Flow (FCF) 4.01 3.90 128.43 0.80 119.93 4.25 128.57 0.83 119.09 5.73 3.86 9.65 12.26 3.71 9.62 30.02 6.81 4.18 9.72 28.67 7.43 4.34 9.76 30.89 8.09 4.52 9.80 33.27 4.70 9.85 9.61 4.88 9.89 38.63 10.48 5.08 9.94 41.65 11.42 5.28 9.98 44.87 9.69 1.28 24.75 26.64 35.85 30.03 499.65 Terminal Value Discount Rate Discount factor PV Cash Flows 10.25% 1.0000 0.9070 0.6768 0.6139 0.5568 0.3418 0.8227 97.98 0.7462 22.40 0.5051 15.60 0.4581 15.24 0.4155 14.90 0.3769 14.56 0.3101 168.84 108.78 16.75 16.35 15.96 14.24 Scenario 108.08 Scenario 159.24 Variance 51.15 Intrinsic Value Enterprise Value Plus: Cash Less: Debt Equity Value Number of shar Price per share 48.08 64.40 142.45 50.68 91.76 9.29 9.88 15.33 5.46 30.03 Finding Terminal Value Perpetuity Growth Model FCF @ t=2020 Terminal UFCF Growth Rate WACC Terminal Value 4% 10.25% 499.65
