The Athletic say that investor Joseph DaGrosa may look elsewhere if Southampton’s majority owner Gao Jisheng does not lower his price for the Premier League club.
The internet ‘newspaper’ claims Newcastle United and West Ham United would be possible alternative clubs for him.
DaGrosa believes the coronavirus pandemic has wiped at least £50m off Southampton’s value, but the current Saints majority owner is clearly not keen on selling the club for £150m.
Newcastle was the subject of a Saudi Arabia’s Public Investment Fund £300m takeover which has stalled but Mike Ashley is unlikely to lower his asking price because of the pandemic.
West Ham were linked with a takeover last September with a phantom enquiry from an American consortium which came to nothing.
Claret and Hugh understands that West Ham shareholders would want at least £500m to sell and see no reason to discount that valuation in the current climate.
Any serious bidder would need to demonstrate proof of funds before any meaningful negotiations or due diligence could take place.
If Dagrossa doesn’t want to pay £200m for the Saints it is difficult to believe he would pay £500m for the Hammers.
£500M..????
LOL
The fanbase number over one million, the club is based in London, the brand is known throughout the world. New owners of PL don’t buy clubs for bricks and mortar, they buy the brand and the supporter base that goes with it. That is the new battle ground for elite clubs.
The engagement with the support base and the numbers
No stadium overheads, saving us and any investors a fortune. The actual football stadium is only worth the land value, less than one players value.
Very astute observation that Kristov. Kudos!
500 mill… c’mon ,,,its a shame because I think new owners could maybe push us to the so called nxt level …you cant have it both ways ,,mr Sullivan and co talk about covid making prices drop in transfers and what not ,but want 500 mill for the club so clearlycovid takes a back seat there …I’m not actually a board hater as i think they have done a few good things,,but owners who are really willing to invest properly would be lovely..
Sadly from your aspect Childish they don’t want it both ways – they aren’t selling
I know mate ,but you can only dream
An investor looking to buying a club on the cheap is unlikely to want to push a club to the next level, they are likely to buy low, do enough to keep us in the PL then sell again for a profit when the marker improves
500m for what?
The only assets are the players who can walk away for nothing if they wish.
Once you knock off the loans they have and value the assets it’s probably circ 200m.
The ground contract is a liability against the business, a 95 year rental agreement they can’t get out of, not yet anyway so that’s a 300m plus charge as well.
If a breakaway European league happens ( in time) then the TV contract would plummet, values would implode.( maybe).
You don’t value a football club by the buildings it owns
You need a use a Multivariate Model or similar
Club value = (Revenue + Net Assets) * [(Net Profit + Revenue) / Revenue] * (% stadium filled) / (%wage ratio)
IF an investor of a football club is looking for a cheap deal off of the back of the covid pandemic… This should be enough to make the hairs on the back of your neck stand on end.
The saying “Out of the Frying pan and into the Fire” springs to mind.