Writing

You are head of the AI team. Write a report to the Chairman of AI, Jacek Piotrowski. Describe the successful proposals and explain why AI should invest in them. Indicate how much money each will receive, and on what terms.

Case study ‘Angel Investments’ card 2

Briefing notes: Entrepreneurs

Before the meeting

Choose one of the proposals or present your own idea for a product or service.

1. Prepare a presentation of your product/service. Use the Key Points as a guide for structuring the presentation.

2. Your aim will be to persuade AI to give you the money you need. Try to predict what questions they will ask you.

During the meeting

1. Give your presentation and answer the AI team’s questions.

2. While waiting to hear AI’s decision concerning your request for finance, discuss these questions:

a) Was your presentation effective?

b) Do you think you will be successful?

c) How well did you answer their questions?

d) What problems did you have, if any?

Case 4. Camden Football Club Background

Camden Football Club is one of the great success stories in English football. Today, it is third in the Premier Division (the top division) and has reached the quarter finals of the European Champions League competition, which is held every year. They get huge crowds at their ground and their Polish manager, Cristos Sroda, is idolised by their fans. Camden is also a great commercial success and is very profitable.

What has brought about their success? Firstly, their manager Cristos had a clear strategy for the team from the start. He developed young players who had come through the club’s youth training scheme. The team was also strengthened by one or two carefully chosen foreign players.

The extraordinary commercial success of Camden is due to their Commercial Director, Sophie Legrange. She greatly increased profits from the club’s main business areas: corporate hospitality, advertising, sponsorship and conferences and banqueting.

At the same time, she skilfully exploited the Camden brand and diversified into other areas: a travel agency for fans and also for companies using the club’s hospitality facilities; a joint venture with an insurance agency to provide financial products for the club’s corporate clients; and finally, training courses in the club’s conference rooms run by local companies. Turnover increased by over 400% to £70m and profits leapt to £15m. TV rights, soon to be renegotiated, will provide another very lucrative source of income.

Current situation

Camden’s current four-year sponsorship deal with an insurance company is about to finish. Sophie Legrange is considering a new and better deal with United Media plc, the powerful publishing, TV production and mobile phone group. It is not only the increased money from sponsorship which appeals to Camden, however. United Media’s broad range of business activities would offer many other opportunities to increase revenue.

United Media are interested in Camden because the club’s success has brought it over 4m fans in the UK and 40m in the Far East. Camden played a friendly match recently in China which was watched live by a Chinese audience of over 250m.

Representatives of Camden and United Media are meeting shortly to discuss a possible sponsorship deal. The following factors will influence the negotiation:

1. Because of their recent successes, Camden feel they are in a strong position to negotiate a valuable four-year contract.

2. Some experts say Camden were lucky to win their last European Cup match, and that they rely too much on their star South American player, Paolo Rosetti. Now aged 30, he has a poor discipline record and is rumoured to have marital and drink problems.

3. Sophie Legrange has full negotiating rights over sponsorship. She will only choose United Media as a sponsor if she can negotiate a good deal for the club.

Task

You are members of the negotiating team of either:

Camden FC (turn to page 18, Card 1)

United Media plc (turn to page 19, Card 2)

Read your role card and prepare for the negotiation. Work out your objectives, priorities, strategy and tactics. Think carefully about what concessions you are willing to make. An agenda has been prepared in advance of the meeting.

Agenda

Date: 10 May

Time: 10 am

Venue: Conference room, Camden Football Ground

1. Total value of the contract

2. Timing of payments

3. Advertising

4. Control of players and club activities

5. Paolo Rosetti

6. Official supplier of Camden football boots

7. Other commercial opportunities

8. Fringe benefits for players

9. Other points