Company and Team Overview

As a Football fan with a fantasy of owning a football club, this deal caught my attention. After all, why not? I could own a part of a football club for just $100.

It intrigued me even more because it’s operated by a group of former scouts from my boyhood club, Manchester United 😄.

The club name is NK Tabor sezena, playing in the 2nd division of the Slovenian league in Europe. At the time of writing this report, they are currently in 6th place on the Slovenian 2nd division table, with 4 wins, 3 draws, and 2 losses, aiming to secure promotion to the First Division.

The management team is led by Lydon Tomilson, the Director of Football, who has managed scouting and youth player recruitment at Manchester United, Manchester City, Leeds United, and Birmingham City. Some of his notable scouting achievements include Jadon Sancho, Jude Bellingham, and Alejandro Garnacho.

He is joined by Juan Echeverria as Chief Scout, who has also spent the last 10 years in the recruitment department at Manchester United, with a focus on South America. and Michael Gorman as Portfolio Manager who’s previously worked as an advisor and attorney for professional athletes and teams

Product Overview

For a lower division club like NK Tabor, their core revenue streams include:

• Player development and transfers

With future aspirations to generate additional revenue from:

• UEFA bonuses

• Matchday revenue

• Broadcasting rights

• Merchandise, sponsorship, and advertising

Total addressable market and customer analysis.

The football market in Europe alone is a booming industry valued at over  €35.3 billion ($39 billion) and is experiencing exponential growth.

In the 2022/23 season, The combined revenue of Europe's top five leagues (Premier League, Bundesliga, LaLiga, Serie A, and Ligue 1) reached €19.6 billion, which reflects a 14% growth compared to the prior year.

The Non-Big Five leagues also saw an increase in revenue, growing by nearly 8% during the same period.

The market is expanding rapidly, driven by increasing participation rates and viewership.

Business model and the numbers

its safe to say FC Tabor operates a’’ Talent Factory Model’’.because its primary Focus is on identifying and recruiting promising players who can contribute to the team's success and potentially be sold for a profit in the future.

As of the recent FY Report, The club isn't generating money Yet.

Funding

The management has only raised $4050 from FMCF, LLC. They are currently raising a community round on wefunder at a $4m pre money valuation

With aspirations to become the world’s largest fan-owned football club, fc tabor is offering investors a unique opportunity to own a professional soccer club with voting rights and profit sharing.

The minimum investment amount is $100.

Analyst verdict

What are the Risk?

The greatest risks to this project can be viewed from an operational standpoint, meaning the success and failure of this project rely solely on the management team. Their aspiration is clear; Sign players who can help them compete and consistently qualify for uefa competitions and sell them for a profit. however, if they fail to attract the right talent, everything else will fall to dust.

The management team looks solid and has an incredible portfolio from their time working at United. However, it's worth noting that unlike an established club like Manchester United, where it's easy to attract talent, Slovenian clubs generally operate with smaller budgets and This financial limitation affects their ability to compete for top talents and impacts the overall quality of the league.

Secondly the 3 financial strategy outlined by FC Tabor United to generating revenue and returns for investors include :

1. UEFA Bonuses: Qualifying for the UEFA Conference League being the goal

They can achieve this either by:

• Earning promotion onto the first division league and finishing at least 3rd, or

• Getting an automatic bid to the Europa Conference League competition by winning the Slovenian Cup, whose format is similar to the English FA Cup.

Either way, although not impossible ("Football, bloody hell!" in Sir Alex Ferguson's voice), the chances of either occurring soon (<4 years) look slim.

For the past 5 years, only 1 recently promoted club from the slovenian lower leagues has made it to UEFA competitions. This is a rare accomplishment.

Basically, This means that even if FC Tabor earn promotion, I don't see them qualifying for UEFA competitions anytime soon, at least for the next 4 years. This is a club undergoing rebuild.

Secondly, getting automatic qualification via winning the Slovenian Cup won't be easy either. Historically, in the past 5 years, the cup has been dominated by top-flight teams with experienced squad and more financial resources. As indicated earlier, NK Tabor is a club undergoing rebuilding, so I don't see them achieving this route anytime soon too.

2. Player Transfer Sales:

As i stated earlier, The management team looks solid and has an incredible portfolio from their time working at United. there network with established club will give them an edge when it comes to player transfer. but on signing players, it's worth noting that, Slovenian clubs generally operate with much smaller budgets and This financial limitation will affects their ability to compete for top talents especially when scouting in same markets ( south america) with already established clubs having huge resources.

3. Slovenian Television Contract;

Of all the teams' financial strategies, this looks the most feasible. Upon promotion to the Slovenian 1st division, each club receives a minimum of €150,000 per season from the league's television contract. That amount can rise to €250,000 depending on the club's performance.

I expect NK Tabor to achieve promotion to the 1st division within the next 2-4years. The results from their first 9 matches have shown a glimpse into what they could become given time. at the time of writing this, They are currently sitting 6th on the Slovenian 2nd division table, with 4 wins, 3 draws, and 2 losses, So I believe even if they don't finish as the top winner anytime soon, a second-place finish could earn them a playoff to secure a slot in the top division. i don’t see this revenue source giving investors returns though, as i believe it will go into financing operations at the club

Lastly,

Fc Tabor is raising at a $4million pre money valuation, but on my observation from there FY report I can't find much asset owned by FC Tabor to justify this valuation, personally a $4m pre money valuation ‘‘kinda’’ looked overvalued. Using a comparable valuation method, I couldn't find details about clubs sold similar to FC Tabor or their prices, as information on leagues like this is limited. but Transfermarkt a popular online platform that provides comprehensive data and statistics on football players, clubs, and transfers, valued the club squad at roughly $2m.

On the contrary and in my opinion, The higher valuation from the company could also signal confidence in their future growth potential, however This may result in less upside potential for investors if the company doesn’t meet its growth projections.

So You decide if that sits well with you.

Borrowing the investment scale of kevin fulmer of crowdscale what would Fc tabor investment rating be?

Business model: 6/10

Opportunity for scale: 5/10

Competitor/risk: 3/10

Founder strength: 8/10

Exit potential: 7/10

AN INVESTMENT RATING: 58/100

With aspirations to become the world’s largest fan-owned football club, offering investors voting rights and profit sharing, Fc tabor is currently raising a community round at a $4m pre-money valuation on Wefunder and you can invest starting with a minimum investment of $100

Would you invest in Fc Tabor?