The Everton Board Thread 2014/15

[TheFinnFan]

What about it ?

It might mean something like..

 

[The Esk]

Even looking at basic calculations off revenue we'd be seeing the club valued at $300mil - "the debt"...factor in the increased "expectations" and its far higher.

The only tricky part is the asset calculations but i guess that football clubs dont follow the standard company valuations if $200mil is the value anyway.

So why is the equity of the club currently valued at £49 million?

 

[Zatara]

That's what i'm alluding to, there must be another format to calculate the value of football clubs.

Deals ive been involved with have been initially calculated to value a company at 3-5 × revenue. Thats of course before electing to move forward to DD stage.

So why is the equity of the club currently valued at £49 million?

 

[Chang Elephant]

Deals ive been involved with have been initially calculated to value a company at 3-5 × revenue

So if the company has £2M annual revenue and £50,000 annual net profit you'd be looking to pay £7M for that company ?

 

[The Esk]

That's what i'm alluding to, there must be another format to calculate the value of football clubs.

Deals ive been involved with have been initially calculated to value a company at 3-5 × revenue. Thats of course before electing to move forward to DD stage.

Firstly I've always thought valuing businesses on revenue is a pretty daft way of valuing, although I accept others are happy to do so. For me you value a business on the asset value of the business plus a multiple of earnings - the multiple increases or decreases based on consistency, growth and/or any other special factors attributable to those earnings (new product launches, new markets etc) less debt and a factor of any immediate capex requirements.

Anyway let's look at your basis - multiples of revenue.

Football clubs cannot be valued on the same basis as say, widget manufacturers, because the security of revenue in all but perhaps half a dozen Premiership clubs cannot be guaranteed beyond 1 season.

So if we look at Everton's last accounts income can be broken down into 3 main areas:

Broadcasting revenues £83m
Gate receipts £19.3m
Sponsorship/merchandising £8.4m

Of the above the only possible income source that you could apply more than 1x to is the gate receipts - let's be generous and say 1.5x.

That gives you a total then of roughly £120 million.

Deduct the debt £28 million

Valuation of £92m

Current market value £49 million. Discount probably reflects the market's belief that the club is not likely to be sold any time soon, and in the absence of a purchaser there is still the future capex requirement for either building or redeveloping of the stadium.

 

[Gwladys St. Glory]

FOR SALE:

1987 Ford Sierra RS500 Cosworth - £10,320,000.00

C'moooon lad, it's a Cozzie FFS! Got the original badges and everything, la.

 

[Goat]

 

[Matty_j1878]

Pointless fume on twitter over something we already knew, i don't like kenwrong myself but why cry over something that's always been known?
That Ambani is also worth 10% now from what he was worth then, as for the Qatar investment office that was Sheikh Mansour and we all know what happened there

 

[Goat]

Pointless fume on twitter over something we already knew, i don't like kenwrong myself but why cry over something that's always been known?
That Ambani is also worth 10% now from what he was worth then, as for the Qatar investment office that was Sheikh Mansour and we all know what happened there

10% less?

Net worth US$12.5 billion (2015)

The poor fella must be wondering where his nearest food bank is.

 

[Matty_j1878]

10% less?

Net worth US$12.5 billion (2015)

The poor fella must be wondering where his nearest food bank is.

Was Worth UK £48.5 Billion

Within 7/8 years dropped to under £4.8 Billion, think seriously about how that would have effected the club, can't have been a good business man losing that amount in such a short space of time. Listen i'm not saying we shouldn't sell because i'd be the first to say Billyblagger should pack his bags and leave.

 

[Goat]

Was Worth UK £48.5 Billion

Within 7/8 years dropped to under £4.8 Billion, think seriously about how that would have effected the club, can't have been a good business man losing that amount in such a short space of time. Listen i'm not saying we shouldn't sell because i'd be the first to say Billyblagger should pack his bags and leave.

Surely you have some sort of proof to back up this very outlandish claim?

 

[Matty_j1878]

Surely you have some sort of proof to back up this very outlandish claim?

http://www.forbes.com/profile/anil-ambani/

Understand Forbes isn't the most reliable however the numbers won't be far off

 

[Goat]

http://www.forbes.com/profile/anil-ambani/

Understand Forbes isn't the most reliable however the numbers won't be far off

I meant the claim that Bill would ever sell.

 

[sageyefc]

FFS lads hes only worth a few billion. Not good enough for us

 

[Matty_j1878]

I meant the claim that Bill would ever sell.

Where did i say Bill would sell? My point being don't cry over milk that was spilt 6/7 years ago when we all knew what he was like then.