Southampton being sold

[optimuswolf]

Not really. A couple of articles in the Athletic explained the financial situation the club and prior owner were in. The quoted price looks fair if it is cash and excludes the debt liabilities held by the club. The prior owner didn’t want to invest more cash when covid racked up debts for Southampton, so they took out a large commercial loan which needs to be repaid in the coming years. If he didn’t sell, and would inject more cash, then Southampton would have struggled.

Just spitballing, but what would you value wolves at right now?

We have 131m of debt. Bit more revenue and potential than soton, and slightly more valuable squad. So maybe 200m? 250 at a push?

 

[Sussex Wolf]

Just spitballing, but what would you value wolves at right now?

We have 131m of debt. Bit more revenue and potential than soton, and slightly more valuable squad. So maybe 200m? 250 at a push?

Funny I was wondering that myself earlier. After the first couple of seasons in the PL, it was reported that Fosun were trying to sell 20% of Wolves, and valued the club at £350m. The pandemic will have temporarily taken a chunk of value away, but I’d expect that to have largely passed now, other than the debt. In addition, since then we’ve accelerated our commercial development, so I’d imagine Fosun would be looking at maybe £400m less debt - maybe £250m net.

If they sold 20% now for £80m, then I’d imagine they’d use some or all of that to reduce debt, or at least any charging a higher interest.

 

[Deleted member 8455jwf]

Funny I was wondering that myself earlier. After the first couple of seasons in the PL, it was reported that Fosun were trying to sell 20% of Wolves, and valued the club at £350m. The pandemic will have temporarily taken a chunk of value away, but I’d expect that to have largely passed now, other than the debt. In addition, since then we’ve accelerated our commercial development, so I’d imagine Fosun would be looking at maybe £400m less debt - maybe £250m net.

If they sold 20% now for £80m, then I’d imagine they’d use some or all of that to reduce debt, or at least any charging a higher interest.

Don't know why they'd touch the debt? That would be part of their profit on the investment the club would just service the debt as business as usual

 

[Sussex Wolf]

Don't know why they'd touch the debt? That would be part of their profit on the investment the club would just service the debt as business as usual

If they could reduce or refinance interest bearing debt the profit would increase, allowing the club greater latitude to invest in growth and hence grow the value of the investment.

 

[Deleted member 8455jwf]

If they could reduce or refinance interest bearing debt the profit would increase, allowing the club greater latitude to invest in growth and hence grow the value of the investment.

Just seems like they'd keep revolving the facility, we made a profit with it previously.

 

[Sussex Wolf]

Just seems like they'd keep revolving the facility, we made a profit with it previously.

I wasn’t talking about the Macquarie loans. They are simply cashflow management.

 

[Deleted member 8455jwf]

I wasn’t talking about the Macquarie loans. They are simply cashflow management.

We don't have any other interest loans to my knowledge

 

[ricki herberts moustache]

Just spitballing, but what would you value wolves at right now?

We have 131m of debt. Bit more revenue and potential than soton, and slightly more valuable squad. So maybe 200m? 250 at a push?

What is spitballing?

Is this a UK term? Or maybe Chinese?

I wonder if I have been spitballing and don't even know it

 

[Sussex Wolf]

We don't have any other interest loans to my knowledge

I wasn’t sure we did. I simply meant that if we did, like Southampton do, then that would be where you’d make use of a new cash injection.

 

[optimuswolf]

What is spitballing?

Is this a UK term? Or maybe Chinese?

I wonder if I have been spitballing and don't even know it

Ha! Its american in origin i think. Business speak for throwing around ideas. No idea about the history