Tuesday 20 April 2010

What is my Team Worth?

For sale. Liverpool Football club. £800 million ono. Only partially used and abused.
What exactly are Liverpool worth? well what ever the buyer wants to pay, but looking at it realistically, I think, about £350. The accounts from last year will probably  show an operating profit of £30-35 million. Multiplying profits by ten to come up with £325 - £350 million. Lets take the top value.


However, like buying a car what is needed?
  • £50 million to freshen the squad, for a start.
  • £350 million for a new stadium.
So any buyers will need, or have access to £750 to get Liverpool on track. And don’t think for one minute that will not go in Bank loans on the clubs books! Cant see anyone paying that much out of their own pocket.
In the meantime how do the off the field ‘players’ get along?Christian Purslow, arrived almost a year ago to raise £100 million in investment. He failed. His prize? He gets to stay on, run the club and take the large salary for another year.
Broughton as Liverpool’s chairman, will work one day a week to oversee the sale at a nice salary, plus a bonus for success, not bad.

Royal Bank of Scotland (RBS), which is owed £237 million by the Liverpool owners. Financial sources suggest it will receive fees in the region of £10 million for this latest six-month extension of the loan. Another winning player.
Barclays Bank, are on the bench, ready to run in and take over the loan after the six months is up. They reportedly offered £500 million to H & G, to take over the loan, supply operating money, oh and take some of it back (£50 million) in fees.
As for Hicks and Gillett they are also taking expenses and “Management Fees” for the holding company while they await their profit on selling my club.
So you can see why the price of £800 million has been touted. No way will H & G get that much, but they and the other players don’t care.
Profitable time for everyone but the fans. The fans overjoyed at the thought of the owners leaving Anfield should now be asking a simple question: ever had the feeling you’re being used and played with?

2 comments:

  1. John

    If the fans share the running of a major club like Barcelona, could Liverpool drum up similar support - what happened to the proposed fans' buyout ?

    Ken

    ReplyDelete
  2. Ken,

    just today (23/4) got an update. Will post my views and update soon

    ReplyDelete

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