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RichardCheatham - City AFC

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First used 09/01/17

#1
17/05/2020 at 21:40

Thought I’d share my thoughts on valuation, since I’ve got a bit of time on my hands.

Jarrod Bowen dosh aside, I assume the price the Allams still seek is £50m.

As we know, there is little basis for this, save for they can boast about not losing money if they get that (an unlikely event), even 5hough with interest and other drawings, the net investment isn’t much like that. However, in a quiet moment, they may wish to reflect on that number while considering the sale price for other clubs in process currently.

1. Newcastle, the (car)toon, Mags, barcodes, Geordie boys, Wembley failures, canny marras.

Widely reported to be changing hands at £300m-£350m to Amanda Staveley (who looks quite fit to me) back by those loveable rogues and occasional journalist assassins, the house of Saud. Shocking human rights aside and the soon to be ignored gross pirating of all live premier league football games, the Prem league having one criteria to fulfil, that being an agreement to pay massive sums to agents, there will be a swapping of bank details and hey presto there will be faux black and white camels for sale in the club shop faster than you can say shukran.

So what do our camel jockey friends get for their money? Ok, it’s a given they can launder hundreds of millions through the club in the move away from oil dependency and “prove” they are not repressors of women or butchers of errant journalists, but on the balance sheet they can show a decent football ground, training facilities, premier league status and a club with a tradition backed by some loyal support in the region of 50,000 fans.

2. Sunderland, the chat noirs, SMB’s, weirsiders, Wembley failures, Netflix comedy stars

Last I read, the price to buy this “sleeping giant” was £35m, notwithstanding a £20m “hole in the accounts” that was generated by that age old gag of buying a club by using the clubs own money. A bit like getting furlough money and thinking it’s a gift, when it’s your money anyway paid by your taxes (although actually they just printed some new stuff and mailed it out). One assumes therefore that in the unlikely event of there being a buyer, the price would be £20m less, therefore being a net £15m.

So, what do you get for £15m? Aside from an obligation to embarrass yourself on Netflix, turn up to a particularly dour part of the world on a regular basis and have conversations with people without having any chance whatsoever of understanding what they are saying you get - a football ground in decent shape, premier league training facilities, a football club with a healthy tradition and loyal support in the region of 50,000 fans. Oh, and a shit team.

I’ve said before, nobody gets rich owing a football club. The old joke of how how do you end up with £10m in the bank? By staring with £100m and buying a football club still reigns. You need to be a fan or be prepared to run the gauntlet like the Glazers etc. Either way, it’s a shit job. But value is an issue you can technically reconcile.

The above two are at extremes, though both have some proper real estate in their portfolios and you’d argue that Sunderland is undervalued, or is it. It’s going to cost someone millions to get back to division 2 let alone division 1, and then if they do, get robbed daily by agents and players and lose their ass gett8ng beaten every week while they make a futile attempt to compete at Prem level.

Are City 1/6 of Newcastle? I don’t think so. Say the real estate is £100m of that and Prem income is another £100m. That would imply Newcastle are valued at twice the value of City. One club in the Prem and one club heading south to div 3. Doesn’t matter which way you spin it, the asking price by the Allams isn’t realistic, but then so much of the Allams tenure has been unrealistic, so what would one expect.

Chatting among other City exiles it seems a lot of fans have moved on since the enforced break and I wouldn’t be surprised to see that replicated across the board. Less interest in football and less interest in City. They may have cooked that goose and at last they may reduce the price enough for someone with energy to buy the club and give fans something to cheers.

Essex Gull, your destiny awaits.

Merry Xmas everyone.

Bunkers Hill - See you in the next life 

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NationalTiger

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First used 09/01/17

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Hull City

#2
26/05/2020 at 21:26

Hull City players asking the club why they should be furloughed when the club have just made over £20m in the January sales. It's a fair question.

Now then... 

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