Research on Decision-making of PPP Project Franchise in Large-scale Stadiums：A system dynamics application
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Su Dan, Liu Yisheng
In order to meet the people's growing demand for sports products and solve the contradiction between the increasing investment demand of private capital and the deficit of government finance, the construction of large-scale sports venues for PPP model has become the trend. However, the proceeds of the PPP project in the operation process and the determination of the franchise period are the key to the success of the project. The franchise decision model is constructed, based on the system dynamics and net present value method, and the minimum value of the acceptable franchise period is calculated from the angle of social capital. Taking the operation data of a large stadium as an example, the influence of different profit on the decision-making of franchise is discussed, which can provide reference for the franchise decision-making between the government and social capital investors.
Large-scale stadiums, PPP, Franchising, System Dynamics.