Post by QPR Report on Aug 2, 2009 6:51:36 GMT
Wonder if Briatore/Mittal/Ecclestone would do it again, if they could do it over!
The Times/Duncan Castles
Cut-price football clubs desperate to sell
There may be bargains for a brave investor as the credit crunch forces hard-up owners to scramble for the exit
THE ASKING prices for a number of England’s most historic football clubs have plummeted as rising debt and wage burdens have combined to provoke forced sales and frighten off potential buyers.
The fall in valuations is so severe that an investor could have bought both Portsmouth and Southampton this summer for considerably less than the £22m Manchester City are preparing to pay for one England defender — Joleon Lescott. Spiralling debts at Portsmouth have seen owner Alexandre Gaydamak offer the club to buyers prepared to take on his bank loans. Despite such terms, a proposed takeover fronted by the Abu Dhabi businessman Sulaiman Al Fahim is at best “weeks from completion”, according to League sources.
Southampton, a club with a Premier League-class infrastructure, were purchased by the Swiss billionaire Markus Liebherr for less than £13m last month. The prices of other clubs have been markedly reduced in the past 12 months. Liverpool co-owner Tom Hicks, right, offered a one-third share of the club to a Dubai-based investment group for £100m this summer. While Hicks last night denied he proposed the deal, it represents a £200m drop in valuation from the £500m wanted for the club just one year ago.
Newcastle United have been offered at a hugely discounted price by owner Mike Ashley following relegation from the Premier League. Ashley initially floated a price of £400m upon deciding to exit the club last season. By December that had dropped to £250m, according to City sources, who say that Ashley is now ready to offload for as little as £90m. Even that price may not be achievable, with Ashley understood to be considering offering vendor loans of over £30m to help a transaction go through. Purchase payments could be made in stages with top-ups depending on whether the club returns to the top tier.
The difficulties involved in divesting themselves of debts incurred by former owner Bjorgolfur Gudmundsson have seen West Ham take a similar tumble in value. Initially placed on the market for £150m, West Ham are now priced at about £50m by the consortium of banks currently controlling them. Some of the drop in value is associated with the unspecified sum West Ham will have to pay Sheffield United in compensation for breaking League rules over the registration of Carlos Tevez.
West Ham at least possess a serviceable stadium, a London postcode and sizeable support. Gaydamak’s readiness to part with Portsmouth for nothing indicates the perilous state of the club’s finances. Portsmouth’s aggressiveness in the transfer market saddled the club with a wage bill that cannot be supported by turnover and led to a total debt of about £65m. The diminutive Fratton Park produces limited commercial revenues and the training ground is in urgent need of replacement.
There are serious doubts that Al Fahim’s proposed takeover of the club will be completed. Although the PR-conscious businessman passed the Premier League’s fit and proper person test, the governing body’s new regulations state that any investor with a stake of 10% or more in the club must also be examined. The League has yet to receive documentation on any co-investors and, meanwhile, the club continues to sell off its better players.
www.timesonline.co.uk/tol/sport/football/premier_league/article6736178.ece
The Times/Duncan Castles
Cut-price football clubs desperate to sell
There may be bargains for a brave investor as the credit crunch forces hard-up owners to scramble for the exit
THE ASKING prices for a number of England’s most historic football clubs have plummeted as rising debt and wage burdens have combined to provoke forced sales and frighten off potential buyers.
The fall in valuations is so severe that an investor could have bought both Portsmouth and Southampton this summer for considerably less than the £22m Manchester City are preparing to pay for one England defender — Joleon Lescott. Spiralling debts at Portsmouth have seen owner Alexandre Gaydamak offer the club to buyers prepared to take on his bank loans. Despite such terms, a proposed takeover fronted by the Abu Dhabi businessman Sulaiman Al Fahim is at best “weeks from completion”, according to League sources.
Southampton, a club with a Premier League-class infrastructure, were purchased by the Swiss billionaire Markus Liebherr for less than £13m last month. The prices of other clubs have been markedly reduced in the past 12 months. Liverpool co-owner Tom Hicks, right, offered a one-third share of the club to a Dubai-based investment group for £100m this summer. While Hicks last night denied he proposed the deal, it represents a £200m drop in valuation from the £500m wanted for the club just one year ago.
Newcastle United have been offered at a hugely discounted price by owner Mike Ashley following relegation from the Premier League. Ashley initially floated a price of £400m upon deciding to exit the club last season. By December that had dropped to £250m, according to City sources, who say that Ashley is now ready to offload for as little as £90m. Even that price may not be achievable, with Ashley understood to be considering offering vendor loans of over £30m to help a transaction go through. Purchase payments could be made in stages with top-ups depending on whether the club returns to the top tier.
The difficulties involved in divesting themselves of debts incurred by former owner Bjorgolfur Gudmundsson have seen West Ham take a similar tumble in value. Initially placed on the market for £150m, West Ham are now priced at about £50m by the consortium of banks currently controlling them. Some of the drop in value is associated with the unspecified sum West Ham will have to pay Sheffield United in compensation for breaking League rules over the registration of Carlos Tevez.
West Ham at least possess a serviceable stadium, a London postcode and sizeable support. Gaydamak’s readiness to part with Portsmouth for nothing indicates the perilous state of the club’s finances. Portsmouth’s aggressiveness in the transfer market saddled the club with a wage bill that cannot be supported by turnover and led to a total debt of about £65m. The diminutive Fratton Park produces limited commercial revenues and the training ground is in urgent need of replacement.
There are serious doubts that Al Fahim’s proposed takeover of the club will be completed. Although the PR-conscious businessman passed the Premier League’s fit and proper person test, the governing body’s new regulations state that any investor with a stake of 10% or more in the club must also be examined. The League has yet to receive documentation on any co-investors and, meanwhile, the club continues to sell off its better players.
www.timesonline.co.uk/tol/sport/football/premier_league/article6736178.ece