In PSV’s three-year policy plan, the club considered to reduce the player salaries to 21 million euros and to invest in the football stadium. They have asked Hypercube whether this would be a good idea.
Our analyses on data sets from PSV and Hypercube showed that an investment in the stadium only leads to small profit margins. Raising – instead of lowering – the player salaries turned out to lead to much higher profit margins. Hypercube therefore recommended to invest in the quality of the first team and raise the salaries. This investment pays off through UEFA revenues accompanied by playing European football. The higher yields should be invested in the youth academy instead of in the stadium.
The Hypercube recommendation has been adopted and implemented. PSV has invested in the first team and the stadium only received a minor facelift. The first team became Champion of the Dutch Eredivisie and played Champions League football. Qualification for the Champions League has resulted in 35 million euros.