[Football] For sale, Crystal Palace FC, asking price £210m, worth £700m within 5 years...a steal?

[El Presidente]

Excuse me [MENTION=31]El Presidente[/MENTION] but do you know how many clubs are up for sale in the leagues? I am only aware of Newcastle and this lot. It seems to me that being up for sale is not ideal because of the uncertainty and limited investment that brings. Mike Ashley answers to nobody does he, so can make decisions and as when required? He can wait to sell when he is ready, but Beaky doesn't have that call does he? I guess it depends whether the Americans want to maximise their profit, make an profit or minimise their losses as the case might be. Trying to be as neutral as possible, Newcastle would be your first serious assessment of which one to buy.

Nearly all owners in the Championship and below are open to offers is my understanding unless they are owned by rich fans. In the Premier League perhaps a few less, but if the price is right most owners will consider offers.

Derby, Charlton and Leeds are definitely being hawked around.

 

[Motogull]

Nearly all owners in the Championship and below are open to offers is my understanding unless they are owned by rich fans. In the Premier League perhaps a few less, but if the price is right most owners will consider offers.

Derby, Charlton and Leeds are definitely being hawked around.

Thanks for that.

 

[Triggaaar]

I used a tweaked version of the MMM model to generate the values. It's a start point and based on the 2017/18 accounts and the drivers therein.
...
Ultimately company value (and [MENTION=27447]Goldstone1976[/MENTION] is the guv'nor on this) is equal parts science, art and bullshit, so the MMM is a start point for a negotiation, not an end in itself.

Thank you. So, if I'm understanding correctly, you're saying the figure given was just a starting point, rather than a proper valuation?

I can understand that, but I'm not sure how useful it is when presented, as it seems quite a long way off a realistic valuation.

Perhaps the main issue with using these methods for football clubs is that one year's results are not as good an indication of future results as they would be in other industries. Usually, if a company is increasing revenue, keeping costs under control, and increasing profits, you can expect that the following year will see good profits too. Conversely, a club like Burnley making good money via the sale of it's best players, is likely to see performances and therefore profits, reduce in future years. Sure you'd be able to rely on it more if there was a long established cycle of producing good players from an academy, but that's not what's happened here, and all clubs get the odd decent player to make a profit.

 

[SollysLeftFoot]

QUOTE=SollysLeftFoot;9095314]Nah, they’ll slide down the table and end up 14th or 14th again.

Rubbish, we’ll finish 14th .[/QUOTE]

Definitely 14th.


I have no idea how or why I put 14th twice meant to be 13th

 

[Motogull]

Well. I suppose what with the senile old woman 'coincidentally' lol talking about big signings in January to keep the top 6 push going, wavering potential investors must have been been whipped into a frenzy and pushing each other out of the way to win the purchase. Awesome news must be really close now.

 

[Nottseagull]

View attachment 115869

I've just looked through the whole thread to find the answer to the glaringly obvious question, i.e. why is Tottenham's average wage bill so disparate from the rest of the Big Six?
It wasn't asked.

 

[Acker79]

I've just looked through the whole thread to find the answer to the glaringly obvious question, i.e. why is Tottenham's average wage bill so disparate from the rest of the Big Six?
It wasn't asked.

Maybe I'm being too simplistic, but isn't the answer simply the iron financial grip of Daniel Levy? Daniel Levy is quite notorious at driving hard bargains, isn't it simply that he does that in wages as well as transfer fees? We've seen them not make any signings over the summer in 2018, and the signings they made in summer 2019 didn't feel particularly big to me, that is, not the sort that demand the high wages we see thrown around at the other five.

 

[Motogull]

Blimey. Those pillocks better watch out. Extending the contract of the sooner-or-later world payer of the year goal machine is going to see nobody being rich enough to buy the club.

 

[Triggaaar]

As some of you know I was asked to value the club on behalf of a prospective buyer a couple of months ago, and the present asking price is in the right ballpark IMO.

View attachment 122247

https://news.liverpool.ac.uk/2019/05/03/man-city-overtake-man-united-as-premier-leagues-most-valuable-club/

The £3b asking price for Chelsea is a fair bit over your valuation.

 

[El Presidente]

The £3b asking price for Chelsea is a fair bit over your valuation.

The £3bn asking price is above everyone's valuation that I have spoken to this week too!

If they get that price for the club it will make Locadia and Jahanbaksh look like bargains.

 

[Papa Lazarou]

The £3bn asking price is above everyone's valuation that I have spoken to this week too!

If they get that price for the club it will make Locadia and Jahanbaksh look like bargains.

Maybe that's how much he needs to pay everyone back; Putin etc

 

[B-right-on]

Wonder if they'd get £238m for Stoke now?

 

[albionalbino]

Didn't Burnley sell for £170 million shortly after this?

 

[Triggaaar]

The £3b asking price for Chelsea is a fair bit over your valuation.

The £3bn asking price is above everyone's valuation that I have spoken to this week too!

If they get that price for the club it will make Locadia and Jahanbaksh look like bargains.

So they sold for £4.25b. Maybe time to throw that MMM formula away?

 

[Southern Scouse]

I understood FSG turned down £4b last year for LFC? I’m sure you know you numbers but those for the top 6 clubs look reasonable.

 

[Triggaaar]

I understood FSG turned down £4b last year for LFC? I’m sure you know you numbers but those for the top 6 clubs look reasonable.

How does £1.6b for Liverpool and Chelsea look reasonable when LFC turned down £4b and Chelsea was sold for over £4b?

 

[El Presidente]

So they sold for £4.25b. Maybe time to throw that MMM formula away?

They weren’t sold for £4.25bn, they were sold for £2.5bn plus a commitment to spend £1.75bn on players and infrastructure over the next decade.

 

[Motogull]

They weren’t sold for £4.25bn, they were sold for £2.5bn plus a commitment to spend £1.75bn on players and infrastructure over the next decade.

But it looks like they're trying to spend it all this window.

 

[Triggaaar]

They weren’t sold for £4.25bn, they were sold for £2.5bn plus a commitment to spend £1.75bn on players and infrastructure over the next decade.

Oh, that's quite a different thing indeed, and not at all what the papers said. Any idea why Abramovic would care how much they spend over the next decade? And who are they answerable to if they don't?

 

[Paulie Gualtieri]

Oh, that's quite a different thing indeed, and not at all what the papers said. Any idea why Abramovic would care how much they spend over the next decade? And who are they answerable to if they don't?

Love of “his” club?


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