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Does a club meet the 70 percent squad cost rule, and what would it take?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
Northbridge FC (a fictional club in Europe) has revenue of EUR 300 million: EUR 150 million from media rights, EUR 90 million commercial and EUR 60 million matchday. It spends EUR 195 million on wages, EUR 45 million a year on transfer amortization and EUR 5 million on agent fees. Does it meet UEFA's 70 percent limit? How much would it need to cut squad costs, or how much would revenue need to rise, to meet it?
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Squad cost ratio = (wages + amortization + agent fees) divided by revenue
- Squad cost = wages + transfer amortization + agent fees
- Limit = 70 percent of revenue
- Fix: cut squad cost to the limit, or grow revenue until squad cost is 70 percent of it
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Squad cost
What a strong candidate does: Wages of 195, amortization of 45 and agent fees of 5.
Squad cost (EUR million): 195 + 45 + 5 = 245
Step 2: Squad cost ratio
What a strong candidate does: EUR 245 million over revenue of EUR 300 million.
Squad cost ratio (fraction): 245 ÷ 300 = 0.8167
Step 3: Squad cost allowed
What a strong candidate does: 70 percent of EUR 300 million.
Allowed squad cost (EUR million): 300 × 0.7 = 210
Step 4: Cut needed
What a strong candidate does: Squad cost minus the allowed amount.
Squad cost cut needed (EUR million): 245 - 300 × 0.7 = 35
Step 5: Revenue needed instead
What a strong candidate does: Revenue at which EUR 245 million is 70 percent.
Revenue needed (EUR million): 245 ÷ 0.7 = 350
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
Northbridge should combine a smaller squad cost with commercial growth, because its squad cost ratio is about 82 percent, 12 points above the 70 percent limit. First, meeting the rule by cost alone means cutting EUR 35 million, about 14 percent of squad cost. Second, meeting it by revenue alone means growing from EUR 300 million to EUR 350 million, which is unlikely in one season. The risk is that cutting too deep weakens the team, loses results and cuts revenue further. As a next step, list contracts ending in the next two seasons and the sponsorship deals up for renewal.
Risks a strong answer names: Selling players brings one-off gains that may not repeat; Revenue from European competitions depends on results the club cannot plan on.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.