Everton Named In Top 15 Most Valuable Brands In World Football

[The Esk]

We can "assume" its somewhere between 150-200m, now, im not a businessman and my math is somewhat limited, but is 200m a fair price for a business with a yearly turnover of between 100-130m?

Well the club is unlikely to be sold then at those valuations. As discussed I think in the Board thread previously, I do not think the club can be sold for more than £100 million in its current state.

 

[Goat]

Well the club is unlikely to be sold then at those valuations. As discussed I think in the Board thread previously, I do not think the club can be sold for more than £100 million in its current state.

At 100m it would certainly appear very attractive, I just think its a little low for a Club with such assets and turnover.

 

[Reidy's Bottle Of Grecian]

Did Goat say his "math"


wtfffffffffffffffffffff

 

[The Esk]

At 100m it would certainly appear very attractive, I just think its a little low for a Club with such assets and turnover.

Well the market currently values the shares at £49 million. The reason I say no more than £100 million is (i) I think you have to discount the current revenue because there's always an outside chance of relegation and there's no guarantee that the broadcasters will continue to pay such amazing amounts to the Premier League and (ii) there's such a huge capital spend required in Everton itself both in the team and of course a new stadium.

Even buying the equity for £100 million, you'd probably repay the debt (say £25 million), spend say £100 million on players and future salaries and spend £200 - 250 million on a new stadium (assuming no public subsidy).

That brings you to £425-475 million. Even for a billionaire that's a lot of cash.

 

[Goat]

Well the market currently values the shares at £49 million. The reason I say no more than £100 million is (i) I think you have to discount the current revenue because (i) there's always an outside chance of relegation and there's no guarantee that the broadcasters will continue to pay such amazing amounts to the Premier League and (ii) there's such a huge capital spend required in Everton itself both in the team and of course a new stadium.

Even buying the equity for £100 million, you'd probably repay the debt (say £25 million), spend say £100 million on players and future salaries and spend £200 - 250 million on a new stadium (assuming no public subsidy).

That brings you to £425-475 million. Even for a billionaire that's a lot of cash.

And after spending 500m, you are left with a club with a very good squad, a fairly decent size loyal fanbase, a modern stadia and in an ideal world, CL football, how much would that club be worth?

Huge risks involved tho, all over the place.

In an ideal world, they would double their money, sell for 40m and we would all live happily ever after

 

[The Esk]

And after spending 500m, you are left with a club with a very good squad, a fairly decent size loyal fanbase, a modern stadia and in an ideal world, CL football, how much would that club be worth?

Huge risks involved tho, all over the place.

In an ideal world, they would double their money, sell for 40m and we would all live happily ever after

In all seriousness though, would we be guaranteed CL year in year out by just spending £100m?

I think the fact that there are 3 "shoe-ins" for CL football each year MC, MU (forget the Moyes year) and Chelsea, that leaves a 1 in 4 chance for the newly capitalised Everton, fighting it out with Arsenal, Liverpool, and Tottenham for the remaining CL place.

I fear that the "billionaire investor coming in to take us to the CL promised lands" era may just have passed us by. It's not inconceivable that that ship has sailed.

 

[TheFinnFan]

Our brand is top notch. Nice.

 

[Goat]

In all seriousness though, would we be guaranteed CL year in year out by just spending £100m?

I think the fact that there are 3 "shoe-ins" for CL football each year MC, MU (forget the Moyes year) and Chelsea, that leaves a 1 in 4 chance for the newly capitalised Everton, fighting it out with Arsenal, Liverpool, and Tottenham for the remaining CL place.

I fear that the "billionaire investor coming in to take us to the CL promised lands" era may just have passed us by. It's not inconceivable that that ship has sailed.

I still think the right manager could invest 100m into the current team and claim CL football, I still think its possible, not the shoe in it would have been 5 years ago, not with the amount of money every club has access to.

But it wouldnt be easy, I totally agree.

 

[roydo]

In all seriousness though, would we be guaranteed CL year in year out by just spending £100m?

I think the fact that there are 3 "shoe-ins" for CL football each year MC, MU (forget the Moyes year) and Chelsea, that leaves a 1 in 4 chance for the newly capitalised Everton, fighting it out with Arsenal, Liverpool, and Tottenham for the remaining CL place.

I fear that the "billionaire investor coming in to take us to the CL promised lands" era may just have passed us by. It's not inconceivable that that ship has sailed.

My feeling too. For what it is worth. The cash return if you won everything just does not equate to a realistic return on capital, if it was a pure business decision. Add in the fact that the main source of income is a TV deal, based on viewing figures around the world, that could disappear at any time, and it just doesnt add up.

Sad, but true I am afraid.

 

[1966efc]

Probably depends on whether you think owning a football club is more like owning a business or more like owning a piece of art.

"The Scream" maybe?

 

[SerenityNigh]

"The Scream" maybe?

 

[Pat's Van]

oooh nighthawks, lovely stuff

 

[Hellerad]

In all seriousness though, would we be guaranteed CL year in year out by just spending £100m?

I think the fact that there are 3 "shoe-ins" for CL football each year MC, MU (forget the Moyes year) and Chelsea, that leaves a 1 in 4 chance for the newly capitalised Everton, fighting it out with Arsenal, Liverpool, and Tottenham for the remaining CL place.

I fear that the "billionaire investor coming in to take us to the CL promised lands" era may just have passed us by. It's not inconceivable that that ship has sailed.

Very likely, but the (at least temporary) boost in annual television money still make us minimally attractive for investment for the sake of the television money alone. Thanks to the TV deal, the investors don't have to rely on CL purses to make money. If an investor is looking for an affordable PL club who isn't traditionally a relegation scrapper, we are in a small group of viable options (for as long as the broadcasting money remains inflated). If anything, I think this reinforces your statement that $100m may be the limit for a moderately conservative investor looking to buy into a football club.

The bigger question remains whether our ownership has any real interest in selling.

 

[Pat's Van]

how long is the TV money guaranteed for anyway?

I mean it's obviously contracted for some time prior to renegotiation right ?

 

[Hellerad]

how long is the TV money guaranteed for anyway?

I mean it's obviously contracted for some time prior to renegotiation right ?

Through 2018/2019