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

[The Fifth Column]

https://www.google.com/url?sa=t&sou...sh-football/&usg=AOvVaw0K7gZGb6jtjrI9h5APFqGI

Oh bless you, still trotting out that old chestnut are you. It's not a debt, Bloom has written it off as basically just money spent on his beloved Albion project, it's only a debt if a return is expected and in this case no return is expected. But you and all the other Palace trolls know that already you just like to think we are as crooked as you are to make yourselves feel better.

 

[Shuggie]

You’re probably right.
Not many would buy a club with a £300 mill debt.

By that logic, no one would buy a houses with an outstanding mortgage on it

 

[loz]

Oh bless you, still trotting out that old chestnut are you. It's not a debt, Bloom has written it off as basically just money spent on his beloved Albion project, it's only a debt if a return is expected and in this case no return is expected. But you and all the other Palace trolls know that already you just like to think we are as crooked as you are to make yourselves feel better.

Got a big one !!

Sorry couldn’t help it

 

[andy1980]

https://www.google.com/url?sa=t&sou...sh-football/&usg=AOvVaw0K7gZGb6jtjrI9h5APFqGI

Exactly £207 isn't 300m is it.

 

[Deportivo Seagull]

https://www.google.com/url?sa=t&sou...sh-football/&usg=AOvVaw0K7gZGb6jtjrI9h5APFqGI

£300m that he has no expectation of ever getting back, nor even wanting it back. Might have something to do with the fact that he owes it to himself ......

Hurts doesn’t it.






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[Deportivo Seagull]

Got a big one !!

Sorry couldn’t help it [emoji23]

Poor .... very poor.

You’re not fishing and it’s a joy to behold


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[Motogull]

I suppose there will be a bidding war, like the one for Dibley in the summer.

 

[Barham's tash]

I suppose there will be a bidding war, like the one for Dibley in the summer.

Nah much more likely turn into a fire sale....

bbc.co.uk/news/av/uk-14453264/london-riots-croydon-is-a-war-zone

 

[Guinness Boy]

tea spat

Never mind that old nonsense dear. It's not debt as well you know. You seem to have not responded to the main point, which was that some Brighton fans told you this was likely to happen and you said it never would.

 

[Motogull]

Never mind that old nonsense dear. It's not debt as well you know. You seem to have not responded to the main point, which was that some Brighton fans told you this was likely to happen and you said it never would.

Its just standard whatabout wankpuffin poofery from them. An awkward point to deal with? Easy, just mention debt and have a chuckle while tugging each other off.

 

[El Presidente]

I'm confused. Did you not come up with the valuation? Apologies if you didn't. I (thanks to my vast knowledge regarding the value of football clubs) am suggesting that you (due to your cute naivety regarding the value of football clubs) have over-valued them.

Are you suggesting that your value was right at the time, but will fall? If so, presumably that means they'll have creamed off massive profits in the period between valuations? Otherwise, how would you explain the difference in valuations?

Thanks
x

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. In that season Burnley made a profit of £45 million on revenue of £135 million, which is impressive, zero debt and finished 7th in the Premier League. They also made substantial profits from the sale of Michael Keane to Everton for £35 million (as well as trebling his wages from £45k to £135k a week. If that level of performance is sustained they would be worth close to the valuation figure, but in 2019/20 finished 15th (which reduced revenues by £16 million) and didn't have such impressive player sales. The drivers of the MMM model are profitability, wage control, net assets, empty seats and revenue, Burnley are in a strong position in relation to four out of the five of those in their 17/18 accounts which reflects on the value, I suspect those will deteriorate a bit in 18/19.



The MMM model in an ideal world would be used in conjunction with others methods such as transaction comparables (which would reduce the value), trading comparables (not possible as Burnley is a private company) and DCFs (which are tricky as they are based on future cash flows which for a volatile business such as that as a club which has a 30% risk of relegation each season).

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.

 

[HAILSHAM SEAGULL]

Must be worth £280 million now they are in a champions league spot

 

[SollysLeftFoot]

Must be worth £280 million now they are in a champions league spot

Nah, they’ll slide down the table and end up 14th or 14th again.

 

[Springal]

Simon Jordan valued Palace about £175M on TalkSport last week. About the same as Newcastle

 

[Se20]

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

Rubbish, we’ll finish 14th .

 

[Acker79]

Rubbish, we’ll finish 14th .

Nah. It'll be 14th.

 

[Kalimantan Gull]

£300m that he has no expectation of ever getting back, nor even wanting it back. Might have something to do with the fact that he owes it to himself ......

Hurts doesn’t it.






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Is a fair point though, Bloom won't sell if he has to write off that 300 mil, which means he won't sell. Happy days for us

 

[Motogull]

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.

 

[*Gullsworth*]

Rubbish we will finish 14th Hopefully

 

[Stat Brother]

I'd imagine Connolly's performance yesterday has put a fair few million on the goods and chattels section of the Albion's valuation.