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Valuing a football club

WolfLing

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The Chelsea takeover has been approved. £4.25bn!

£2.5bn of that has purchased the shares of the club, with a further £1.75bn as future investment.

Chelsea's latest books show they lost £145.6m, despite winning the Champions League. Their latest turnover is listed as £493m.

Earlier this season, Newcastle were sold for £309m. Roughly 1/8th of the price Chelsea will be sold for.

Newcastle's latest books show they lost £54m, with turnover listed as £152m.

Chelsea have 3.25 times the turnover of Newcastle, they lose nearly 3 times as much, but they are sold for 8 times more?

None of it makes any sense to me!!

How do you value a football club now?

I worry that part of the reason the price for Chelsea is so high, is that the new owners know that at some point, some kind of Superleague will happen.
 

Joshwolf218

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Interesting isn't it, just throwing a few ideas out there

Maybe something to factor in brand exposure, Chelsea are global and have that pull.

I'm guessing buying the training ground and statidim plus any other facilities are factored in, with London prices maybe.

I'm guessing buying the player assets and all counts towards them.
 

SA Wolf

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It is difficult to comprehend, but prices are based on what someone is prepared to pay. Clearly, Boehly and his mates see value in paying that obscene amount for Chelsea and they were only one of several consortia prepared to do so!
 

WolfLing

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Interesting isn't it, just throwing a few ideas out there

Maybe something to factor in brand exposure, Chelsea are global and have that pull.

I'm guessing buying the training ground and statidim plus any other facilities are factored in, with London prices maybe.

I'm guessing buying the player assets and all counts towards them.

Yeah, the London prices is probably one reason.

As for the players, I'm not sure they are ever taken into account when these takeovers happen.

On paper, if Newcastle sold everyone in their squad, they would probably be worth around £300m in today's market. Yet the takeover price was only slightly more than that.

Maybe because they are not technically owned by the club? They are registered to the club for the fixed period of their contract? Technically, a transfer fee is to buy a players registration.
 

Joshwolf218

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Yeah, the London prices is probably one reason.

As for the players, I'm not sure they are ever taken into account when these takeovers happen.

On paper, if Newcastle sold everyone in their squad, they would probably be worth around £300m in today's market. Yet the takeover price was only slightly more than that.

Maybe because they are not technically owned by the club? They are registered to the club for the fixed period of their contract? Technically, a transfer fee is to buy a players registration.

Potentially, I think the top 6 or up their with the biggest brands etc so you automatically add more on.

I heard some was going to charity don't know whether that was true or not
 

Sussex Wolf

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Chelsea’s ground and associated hotel sits in just about the most expensive area of land in the country. The club also has significant brand value. Add in the value of the players adjusted for contract length, and it’s not hard to get to these numbers.
 

Mighty Thor

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You don’t. They are trophy assets where the price paid bear little resemblance to the clubs intrinsic value.

Outside of football, unless you are looking at super high growth tech business was there is not a single other example of a business being valued at 10x top line.

It’s all just vanity.
 

Minimalist

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I don’t think Chelsea actually own the pitch do they? Some kind of supporters trust do. Though they do own the actual stands which I guess could be sold for big money, but then they’d have to buy land for a new stadium in equally as expensive area.

The valuation seems crazy.
Even riches from a potential future super league will likely end up spent on players wages to compete in it.
 

YouGottaRaulWithIt

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Nit sure about value, but this is what clubs earned this year, courtesy of Kieran Maguire.

1653507910941.png
 

YouGottaRaulWithIt

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Potentially, I think the top 6 or up their with the biggest brands etc so you automatically add more on.

I heard some was going to charity don't know whether that was true or not
Besides, with the new eufa rules and our own VAR corruption, sorry interpretation, the top six are guaranteed european football for time immemorial.
 

VancouverWolf

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Inside the Chelsea Sale: Deep Pockets, Private Promises and Side Deals​

Britain’s government has cleared the sale of the Premier League soccer team. But to win approval, the new owners had to agree to a set of unusual conditions.

“The suitors were asked not only to pay a jaw-dropping price for the team but also to commit to a number of pledges, including as much as $2 billion more in investments in Chelsea.

The club’s suitors were told, for instance, that they cannot sell their stake within the first decade of ownership and that they must earmark $125 million for the club’s women’s team; invest millions more in the club’s academy and training facilities; and commit to rebuilding Stamford Bridge, Chelsea’s aging West London stadium.”

 

CelebrityWolf

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The Chelsea takeover has been approved. £4.25bn!

£2.5bn of that has purchased the shares of the club, with a further £1.75bn as future investment.

Chelsea's latest books show they lost £145.6m, despite winning the Champions League. Their latest turnover is listed as £493m.

Earlier this season, Newcastle were sold for £309m. Roughly 1/8th of the price Chelsea will be sold for.

Newcastle's latest books show they lost £54m, with turnover listed as £152m.

Chelsea have 3.25 times the turnover of Newcastle, they lose nearly 3 times as much, but they are sold for 8 times more?

None of it makes any sense to me!!

How do you value a football club now?

I worry that part of the reason the price for Chelsea is so high, is that the new owners know that at some point, some kind of Superleague will happen.

Why worry about a superleague? You should be praying it happens so we can get away from the corrupt six.
 
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