REINFORCING

FOOTBALL EXCELLENCE
FOR SUCCESS
January 2017

© 2017 Victory Soccer Ltd. – Highly Confidential – 1

REINFORCING FOOTBALL EXCELLENCE FOR SUCCESS

Disclaimer

IMPORTANT: This presentation is for informational purposes only. It is used to support confidential discussions with company management and a limited
number of selected prospective business partners and investors with the purpose of assessing the project’s Business Plan, structure, positioning, strategy and
possible funding that may include capital subscription or debt in the to be formed investment company.
This presentation includes forward-looking information. Such information do not represent historical facts. This information includes financial projections and
estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services,
and statements regarding future performance. Although the management of Victory Soccer believes that the expectations reflected in such statements are
reasonable, readers of this presentation are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of
which are difficult to predict and generally beyond the control of management. This could cause actual results and developments to differ materially from the
ones expressed in, or implied or projected by, the forward-looking information and statements.
Information provided within this document is strictly confidential and disclosure is subject to a signed mutual confidentiality agreement.

© 2017 Victory Soccer Ltd. – Highly Confidential – 2

REINFORCING FOOTBALL EXCELLENCE FOR SUCCESS

Agenda

1

Overview of the LOSC deal

2

LOSC 5 growth pillars
1. LOSC - A great football asset
2. Invest in “Football Excellence”
3. Develop best Academy in France (and neighboring countries)
4. China Business Development

© 2017 Victory Soccer Ltd. – Highly Confidential – 3

1. OVERVIEW OF THE LOSC DEAL

1.1. Background of the LOSC opportunity

LOSC is one of the best performing and valuable clubs in Ligue 1

3rd overall L1 finishing position over the last 6 years
Won both Ligue 1 championship and the French Cup in season 10/11

LOSC reputation stands as a structured and well organized Club with a strong
football identity supported by a passionate crowd, a modern stadium and the
best Academy infrastructure

Lille is the fourth largest urban area in France with 1.2m inhabitants

LOSC shows the best L1 track record in the last 10 years in terms of highest
trading balance between players sold and players bought amounts with a profit
of €199m

L1 League is set to benefit from recent large TV deals in both Premier League
(GBP2,4bn, 50% increase) and Bundesliga (€1,4bn, 70% increase) – L1 TV
rights will eventually catch-up soon

LOSC is the most readily prepared growth club in Ligue 1
© 2017 Victory Soccer Ltd. – Highly Confidential – 4

1. OVERVIEW OF THE LOSC DEAL

1.2. Summary of the LOSC investment opportunity

Opportunity to invest in LOSC to re-inforce its core assets such as: strong
football identity, pitch performance, scouting, academy, player trading, etc.

More specifically, priority development areas in LOSC will be :




Increase revenue generation thanks to a re-energized and professionalized
management – so far best results in France with “improvable” staff
Develop a fully fledged “Football Excellence” program to support 1st team
competitiveness and enhance players future value and their tradability
Develop LOSC Academy as a reference global center – already in France
Explore and fully develop the China football opportunity given the current very
optimal circumstances for commercial deals and football academies
development
Increase player investment to support team competitiveness as revenue grows
Evaluate a stadium buy-back financing operation since it can become a superior
source of future revenue

LOSC is a very exciting investment opportunity with both incremental
and material avenues of growth with a partner such as Victory Soccer
and its associates
© 2017 Victory Soccer Ltd. – Highly Confidential – 5

1. OVERVIEW OF THE LOSC DEAL

1.3. LOSC’s 5 growth pillars
LOSC as a great football asset to own
A competitive well run Club in L1,
a League to catch-up in size with other
Leagues

1

LOSC – a
great
football
asset

A unique opportunity to
pioneer football in China

Leverage current football assets to
promote “Football Excellence”

2

5

Opportunity to develop best football
practices from 1st team through all youth
teams to accomplish Club target
sporting results

Invest in
“Football
Excellence”

China
business
opportunity

Expand Domain de Luchin unique
sporting infrastructure
Develop commercial
Academy/University activities
with global presence

LO
SC

Fully develop the China football
business opportunity in both
the commercial and sporting
fronts

3

4

Expand revenue line to become
a top 3 Club in France

Best
Academy in
France

Revenue
expansion

Larger revenue will enable to finance
higher wages for a more competitive
team

Opportunity to invest in the LOSC’s existing assets to go from a well run French club to a
reference global football entity with LOSC as a brand (not the city)
© 2017 Victory Soccer Ltd. – Highly Confidential – 6

1. OVERVIEW OF THE LOSC DEAL

1.4. Victory soccer team – a wining team with track record

GERARD LOPEZ

MARC INGLA

Mangrove, Nekton and Genii Founder

FC Barcelona Vice-Chairman (03-08)

Lotus F1 Chairman and owner

Only private team to win races and thrive
among major car manufacturer brands

Led Club turnaround resulting in 4
times win of Champions League and
increased revenue by x5 over 10 year

Early investor in
which turned
out to be a $3bn company

Majority shareholder of free website
builder

NASDAQ IPO resulting in $2bn valuation

Football technical advisors
MARCELO BIELSA

LUIS CAMPOS

Reference coach for advanced training
methods and tactics

AS Monaco Technical Director
generating 300 M Euros of profits

Coach of Argentina, Chile, Bilbao,
Marseille and Español among other
Clubs

Scout of Real Madrid, Manchester
United and chased by Mourinho,
Olympique de Marseille or Chelsea

© 2017 Victory Soccer Ltd. – Highly Confidential – 7

REINFORCING FOOTBALL EXCELLENCE FOR SUCCESS

Agenda

1

Overview of the LOSC deal

2

LOSC 5 growth pillars
1. LOSC - A great football asset
2. Invest in “Football Excellence”
3. Develop best Academy in France (and neighboring countries)
4. China Business Development

© 2017 Victory Soccer Ltd. – Highly Confidential – 8

2.1. LOSC – A GREAT FOOTBALL ASSET

1. Summary of key assets
A performing Club
3rd in L1 last 6 years,
continuously in
European competitions

Great player trading
track record

L1 as a main player
trading platform to
cash-rich PL

First Class Academy
infrastructure, scouting
network and youth
training methodologies

One of the best
stadiums in France with
passionate crowd with
strong football culture

Possibility of real state
development around
the Academy site

Strategically located
close by London,
Brussels and Paris

Very limited demotion
risks given weakness
of bottom 10 L1 clubs

Structured, serious and
ordered Club with good
managerial reputation

LOSC as a great asset to own within the L1 French football context.
With targeted investments to reinforce its core assets (football excellence, academy, player trading),
reenergized management, focused growth and internationalization programs, and along the expected L1
catch-up to other leagues in size, it can become a unique and extremely valuable franchise
© 2017 Victory Soccer Ltd. – Highly Confidential – 9

2.1. LOSC – A GREAT FOOTBALL ASSET

2. A Performing Club
Last 6 seasons top L1 Clubs
average ranking

LOSC L1 ranking last 6 seasons
8
PSG

1,7

6
5
Average
ranking:

4,3

OL

LOSC

3

3,2

4,3

3
OM

6,2

ASSE

6,2

1

2010/11

2011/12

Source: Lazard, Sept’16

2012/13

2013/14

2014/15

2015/16
Source: Lazard, Sept’16

LOSC is a competitive Club in the context of L1 thanks to a consistent sporting strategy over time,
largely based on a good scouting network in Northern France and Belgium, self produced talents
from own Academy, and effective/competitive play style of the first team.

© 2017 Victory Soccer Ltd. – Highly Confidential – 10

2.1. LOSC – A GREAT FOOTBALL ASSET

3. Successful sporting side – Clever player buying / selling
Player balance last 10 seasons
main L1 Clubs (07/08-16/17), (€m)

LOSC player trading activity last 10 seasons (07/08-16/17),
(€m)
46

40
34

20

2
-7

14

09/10

10/11

22
26
8

-9
08/09

40

12
-3

-19

175
27

20

25
2 0
2

35

39

19
10

07/08

44

42

37

-23
11/12

Players sold

-21
12/13

13/14

Players bought

-8

14/15

-5
-13
15/16

(73)
16/17

(531)

Balance
Source: Lazard, Sept’16

Source: TransferMarkt, Sept’16

Last 10 years trading balance


Sales:
Buy outs:
Balance:

€306m
€107m
€199m

Best track record in Ligue 1
in terms of
trading balance

© 2017 Victory Soccer Ltd. – Highly Confidential – 11

2.1. LOSC – A GREAT FOOTBALL ASSET

4. L1 as a net player selling platform – Premier League as main client
Player trading balance last 10 years (€ m)

-668

-668

149

-645

Player trading balance last 10 years (€ m)
-3.772

Destination of L1 players sold last 10 years (€m)

Origin of PL bought out players last 10 years (€m)

820

756
482
363 last 10 years
324 (€ m)
Player trading balance

Player
343 trading balance last 10 years (€ m)

Premier
League

Jupiler Pro
League

122

112

Serie A

La Liga

33

13

Bundesliga

Championship
(ENG)

La Liga

Serie A

Ligue 1

Bundesliga

253

Eredivisie

Premier League (and even Championship) to become main market for LOSC in relation with the extension of the
sporting strategy (scouting, playstyle, coach selection, training, etc.). New ultra-Rich TV contracts in England to
further accentuate this strategy.
© 2017 Victory Soccer Ltd. – Highly Confidential – 12

2.1. LOSC – A GREAT FOOTBALL ASSET

5. LOSC as a “Transition Club” trading platform – and a “Flagship Club” in the future
“Player Life Time Value“ (PLTV) – illustrative
numbers
> 30

TOP CLUBS or LIFESTYLE CLUBS
(Gulf, US,, China, etc) to finish career

20 - 30
FLAGSHIP CLUB continuously in
top spots in top leagues and playing
in European competitions

10 - 20
TRANSITION CLUB for good young
players to gain experience before joining
a top club

x5 - x10
2 - 10

YOUTH CLUB with reputation to identify/train
young talents and give them the chance to play

0-2
ENTRY CLUB in Belgium or Portugal to attract
gifted non-EEC players

Early
career
17–20
years

Progressi
on
20–25
years

Maturity
25-30
years

Decline
30-35
years

LOSC as a “Transition Club” platform selling the dream to the best young talents to promote and sell them to
either Flagship Clubs or even Top Clubs – highest player investment multiplier potential in Europe with Porto and
few others.
© 2017 Victory Soccer Ltd. – Highly Confidential – 13

REINFORCING FOOTBALL EXCELLENCE FOR SUCCESS

Agenda

1

Overview of the LOSC deal

2

LOSC 5 growth pillars
1. LOSC - A great football asset
2. Invest in “Football Excellence”
3. Develop best Academy in France (and neighboring countries)
4. China Business Development

© 2017 Victory Soccer Ltd. – Highly Confidential – 14

2.2. INVEST IN “FOOTBALL EXCELLENCE”

1. “Football excellence” at LOSC
• “Football Excellence” as a Club governance commitment to bet on a
specific football play style from 1st team and through all the YOUTH
TEAMS, which shall consistently deliver performing results according
to Club sporting targets
• Samples of “Football excellence” in other leagues with recognizable
playstyle are:



FC Barcelona, At. Bilbao and Villarreal in Spain
Oporto in Portugal
LOSC in France
Arsenal in England

• To implant and reinforce a “Football Excellence” idea across the board
at LOSC it has to touch all elements of the football talent development
value chain

© 2017 Victory Soccer Ltd. – Highly Confidential – 15

2.2. INVEST IN “FOOTBALL EXCELLENCE”

2. “Football excellence” value chain

• 1st team coach to
comply with playstyle.

Coach decision as one
of the most important
Club decision since it
plays a pivotal and
crucial role in
establishing “football
excellence” across the
board and consistently
achieving Club sporting
targets

Focus on talented and special players

Consistently a top5 Club in L1, and participate in European Championships.

Develop players optimal value and tradability.

LOSC sporting objectives and playstyle philosophy

Balanced squad
composition to
guarantee playstyle and
ensure competitiveness
every season

1st team coach

Players picking to
maximize each PLTV
and their tradability at
the right sell-out
momentum

Execute LOSC
“playbook”

1st team composition

B team and U18 teams
composition

• Shared
“playbook” of
first team
• Intensity in
formation, less on
competing

Scouting network

Extraordinary capillary network of connected scouters in search for the global talent

Increased reach in France, Belgium, Netherlands, West Africa, Maghreb

Landing spot for
scouted players
Up or Out policies

Academy

Players with clear
projection to first
team
• Intensity in
competing, also
formation

Develop “LOSC
playbook”

Have both an attractive/creative/offensive/fast playstyle but extraordinarily competitive/effective
which should translate into results

Landing spot for
scouted players

• Shared
“playbook” of
first team

Enter new markets: LatAm, Nordics, East Europe

© 2017 Victory Soccer Ltd. – Highly Confidential – 16

2.2. INVEST IN “FOOTBALL EXCELLENCE”

3. LOSC “Playbook”
Playbook “evangelists”

Main contents






Defines LOSC playstyle DNA
Specifies pitch player positioning forms
(433, 4231, 422, etc.)
Defines player typified pitch movements on
both offensive and defensive transitions
Define sample tactics in specific game
situations
Defines required players characteristics per
every position and scouting guidelines
Defines specific training techniques for
every position and pitch players movements
Sets Academy player production
requirements
Etc.

Coaches
“Coaches of Coaches”
Youth teams coordinators

Leading players
per zone
(defense, mid, offense)

Video
intensive

Smartphone
enabled

Personalized
dossiers per player

Unlike immense majority of Clubs (including top Clubs), LOSC will make an effort to document and make explicit its football
knowledge into “LOSC playbook” and share it systematically among all technical professionals and players.
LOSC “playbook” will be scalable to other geographies where LOSC might have an interest (e.g. China) – this is unique and Victory
has the quality of staff to achieve. This was done in the US pro leagues generations ago. European football massively lags behind.

© 2017 Victory Soccer Ltd. – Highly Confidential – 17

2.2. INVEST IN “FOOTBALL EXCELLENCE”

4. LOSC Academy performance

Still room for improvement on home grown players contribution to catch-up with main L1 Clubs like
PSG, Monaco or OL

Consistent with French Clubs who in general promote home grown player from own Academy
1

2

3

% of players formed in own academy playing in the main
squad, 2014

25%

22%

16%

14%

10%

Opportunity to build best football academy in France and abroad. Already a great magnet brand
to attract best young talents with the promise to promote to better and higher earning clubs

Opportunity to produce players at a marginal cost compared to buying them in the open market

Higher home grown players contribution to first team as a mean to protect a proprietary LOSC
playstyle , providing cohesiveness to the dressing room and promoting more identification with the
crowd
© 2017 Victory Soccer Ltd. – Highly Confidential – 18

2.2. INVEST IN “FOOTBALL EXCELLENCE”

5. Expanded and Global Scouting System
Current team
• Supervision of 8-15-year old players
‒ c.10 employees on part-time contracts covering
the Nord-Pas-de-Calais region
• Supervision of +18-year old players
‒ c.10 employees, all former professional players,
on full-time contracts covering mostly France,
Belgium and Africa
• Video supervision team
‒ 3 employees on full-time contracts supervising
players via video

From supervising 200

players per year…

Expanded team
• Further expand core market influence: France,
Belgium and Netherlands coverage
• Cover well the LatAm, Nordic and East Europe
countries
‒ Brazil, Colombia, Chile, Ecuador, Argentina,
Venezuela, etc.
‒ Sweden, Denmark, Iceland, Norway, Island
‒ Poland, Czech R., Slovenia, Croatia, Serbia,
Hungary, Turkey

… to ca 600

players per year (X3).

An expanded scouting team shall materially enlarge the player funnel
to find the best talents for LOSC playstyle and sporting objectives
© 2017 Victory Soccer Ltd. – Highly Confidential – 19

REINFORCING FOOTBALL EXCELLENCE FOR SUCCESS

Agenda

1

Overview of the LOSC deal

2

LOSC 5 growth pillars
1. LOSC - A great football asset
2. Invest in “Football Excellence”
3. Develop best Academy in France (and neighboring countries)
4. China Business Development

© 2017 Victory Soccer Ltd. – Highly Confidential – 20

2.3. DEVELOP BEST ACADEMY IN FRANCE (AND NEIGHBORING COUNTRIES)

1. LOSC has an impressive Academy infrastructure
“Domaine de Luchin”

The "Domaine de Luchin" is LOSCs 49 Ha (121
acres) recently built headquarters, dedicated to sport
performance as well as public exposure

Modern new facilities including notably a brand new
training center which enables LOSC to work in
conditions worthy of Europe's biggest clubs
including several natural and artificial grass pitches
plus an indoor pitch

It is located 15km from Lille and its railway station,
less than 10km from Lille airport and approx. 5km
from the Pierre Mauroy Stadium (LOSC Stadium)

ca.200 professionals are involved in the
enhancement of each player skills with cutting edge
equipment and facilities available to senior team
players, pupils and to the public

Beside the traditional soccer equipment, the area
comprises high design cloakrooms, a treatment
room, a weight room, balneotherapy, a high-tech
press room with a multi-functional studio and
reception areas

LOSC Headquarters, training Center and Academy

© 2017 Victory Soccer Ltd. – Highly Confidential – 21

2.3. DEVELOP BEST ACADEMY IN FRANCE (AND NEIGHBORING COUNTRIES)

2. LOSC “Football Academy University” project
A State-of-the-art football academy is expected to be built by 2020 in Luchin to attract young amateur football players into
a commercial/for-profit business for LOSC
 LOSC intends to value abroad its recognized training expertise and further reinforcement through “Football Excellence” program

by settling partnerships with international universities and top technology firms
 The formation would be tailor-made and fee-based, with the foreign students of their home universities paying for their stay in

Luchin
‒ Students would receive both theoretical and practical trainings
‒ Best football players could join LOSC Youth Academy at the end of the program
‒ LOSC to benefit from Lille city strong positioning in the Universities domain

LOSC has planned significant improvements in the Domaine of Luchin to host foreign students, including:

Training center

Seminar center

Multisport gym

15 green lodges

Sporting facilities

Various landscaping
projects

© 2017 Victory Soccer Ltd. – Highly Confidential – 22

REINFORCING FOOTBALL EXCELLENCE FOR SUCCESS

Agenda

1

Overview of the LOSC deal

2

LOSC 5 growth pillars
1. LOSC - A great football asset
2. Invest in “Football Excellence”
3. Develop best Academy in France (and neighboring countries)
4. China Business Development

© 2017 Victory Soccer Ltd. – Highly Confidential – 23

2.4. CHINA BUSINESS DEVELOPMENT

1. Strategic rationale

China governors have made a strategic bet for football as a mean to
develop sports values to society

Chinese investors entering aggressively European football – it has only
started in France

The Chinese Football Federation is expected to spend/invest ca $8bn to
promote football around the country

Roll-out of Academies to teach football and sports values to Chinese
kids and citizens as “Trojan horse” and very valued entry strategy into
China

Beijing

Hong Kong

© 2017 Victory Soccer Ltd. – Highly Confidential – 24

2.4. CHINA BUSINESS DEVELOPMENT

2. Roadmap of LOSC brand development, engagement and monetization

LOSC POSITIONING
AND PR STORY IN
CHINA

LOSC BRAND
EXPOSURE

FANS
ENGAGEMENT

REVENUE
GENERATION
TV rights & publishing

PR & Communication
Tours/Friendly games
Television
China Club/Academies

Internet/Mobile/SM
TV audience
Icon players/coaches IR

Tours/Friendly games

Internet/SM traffic

Sponsors/prom/IR

Tours attendance

Gaming

Fan base

Merchandising

Academies

Key areas

China LOSC own Club
China Club attendance

Media
Sports
Commercial
Social

Chinese players dev.

Main focus
areas – highest
revenue
generators

Ticketing / PPV
LOSC Fan card

Sponsors/promotions

Real Estate

© 2017 Victory Soccer Ltd. – Highly Confidential – 25

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