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#swfc Chansiri has allegedly refused an offer for his ownership stake in Sheffield Wednesday Football Club Limited of £30m.
How much is the club worth?
In football finance the "Markham Multivariate Method" tries to attack that question objectively and accessibly.
[thread] https://twitter.com/YesWeCrann/status/1358899570231701507
How much is the club worth?
In football finance the "Markham Multivariate Method" tries to attack that question objectively and accessibly.
[thread] https://twitter.com/YesWeCrann/status/1358899570231701507
The basic formula used is this: https://www.sportingintelligence.com/wp-content/uploads/2013/03/Markham-paper.pdf#page=17
If we use the last published accounts for 2017-18 ( …https://find-and-update.company-information.service.gov.uk/company/02509978/filing-history/MzIzOTM4OTU5M2FkaXF6a2N4/document?format=pdf&download=0) and fill in the formula, the resulting valuation is:
£7,300,000 in 2017-18
£7,300,000 in 2017-18
In 2015, when Chansiri bought the club from Mandaric in January, the club's valuation was £17m.
This season it would be negative (see table in image)
Chansiri paid £37.5m, double the valuation, and even if we double the £7.3m calculated value in 2017-18 we arrive at £15m.
This season it would be negative (see table in image)
Chansiri paid £37.5m, double the valuation, and even if we double the £7.3m calculated value in 2017-18 we arrive at £15m.
Given the uncertainty of both the immediate (42% of our revenue in 17-18 was from match day, the highest in two top tiers), short (revenue would be more than halved in League One) and longer term future of the club (accumulated losses of £122.8m by July 2018) £30m is a good offer
In case Chansiri "wants his/his father's money back", I'd estimate he has spent around £180m in the six years up to now, or £80,000 every single day of his ownership of the club:
Newcastle United, with £170m of revenue a year (7 times ours), a stadium twice the size of ours and with nearly double the average attendances and of course a place in the EPL that does not look immediately under threat, were about to be sold for £300m ( https://www.dailymail.co.uk/sport/football/article-8250503/An-insiders-guide-football-club-takeovers-Newcastle-deal-done.html).
If Chansiri expects to receive an offer of anything remotely close to the £180m he is likely to have spent on the club up to now he'll be disappointed. Especially given his admission with cash flow problems selling up for £30m would be a very savvy financial decision on his part.
