Half a billion pounds, the bloke is mad. His follow up shows that he's not a great fan of Mr Bloom. "If you think TB is some kind of mother Teresa doing it for the people you are deluded. After all he makes his money in the betting industry fleecing gambling addicts and their families."
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[Football] Albion valued at £224 million
- Thread starter El Presidente
- Start date
Half a billion pounds, the bloke is mad. His follow up shows that he's not a great fan of Mr Bloom. "If you think TB is some kind of mother Teresa doing it for the people you are deluded. After all he makes his money in the betting industry fleecing gambling addicts and their families."
Ernest
Stupid IDIOT
I’d be more IMPRESSED if the DULLARD who wrote this explained where the MONEY from this years FA Cup run was
Easy 10
Brain dead MUG SHEEP
Its already been SPENT on two weeks of Jahanbakhsh's WAGES
Justice
Dangerous Idiot
Marxo
Well-known member
Burnley 7th! I must be dreaming, how can they be higher than Everton for instance?
- Thread starter
- #27
Burnley finished 7th last season, qualified for Europa League, made a profit, pay wages on average £30,000 a week lower than Everton.
I'm not entirely sure what "value" means in your analysis, but do you believe that if Burnley, Newcastle, Everton and West Ham were up for sale that Burnley would fetch the highest price?
- Thread starter
- #29
The value is would perhaps be used as a start point for negotiations, but then adjustments made for changes since the accounts were published.
Viewed purely as a business the figures show that Burnley run far more efficiently than Newcastle, Everton and West Ham and this would have an impact upon what someone is prepared to pay. The single biggest influencer on business success is the quality of management, and whilst Burnley is unfashionable the team they have there is very smart.
It's counterintuitive I agree, as the other clubs 'feel' that they should be higher than Burnley, and the value is based on future performance matching those of the past, which is unlikely.
The other 'bigger' clubs have a history of spunking money away on poor signings and expensive management changes (it cost Everton £14.4 million to sack Koeman and Allardyce last season for example).
Burnley's owners have put zero money into the club in the last decade and it has delivered regular results. Ashley has put over £140 million into Newcastle, Moshiri £175 million into Everton and even the Dildo Brothers have put money into West Ham (although they have charged the club £14 million in interest for the privilege).
The model has flaws and limitations like all rigid approaches to valuation, I didn't create it, but have tried to revise it for those issues which I think are its greatest weaknesses.
Last year we did the same exercise and published a paper in May 2018 than valued Arsenal at £1,832 million, and the club was bought by Stan Kroenke in August 2018 for £1,833 million. It could of course be a classic case of a stopped clock is correct twice a day.
All academic work is theoretical in nature and is published to be pulled apart, I'm fully aware I don't live in the 'real' world and I was tempted to adjust the figures because Burnley stood out, but it would have been wrong to do so. The bigger issue IMO is not whether club A is worth a few million more than club B, but that there appears to be three divisions in the Premier League, the Big Six, the mid tier (Everton, West Ham, Newcastle, Leicester and perhaps Burnley if they maintain their financial controls) and the rest.
So attendances and future prospects etc haven't featured in the valuation?
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- Thread starter
- #32
Attendances are taken into consideration as they contribute towards both revenue, profits and stadium utilisation metrics which are part of the formula used.
Future prospects are not incorporated as they are diffifult to quantify. What were the prospects of Sheffield United and Norwich being promoted at the start of the seaon for example?
Icy Gull
Back on the rollercoaster
- Jul 5, 2003
- 72,015
I have nothing to back this up but I suggest the potential MASSIVENESS of WHU, Newcastle and Everton would blow the cost of buying the club out of the water in comparison to Burnley (who do have a fantastic history, but a long time ago) but will never be as big as the other three clubs again imo 
I very much doubt that Burnley would be on the radar of an investor who would almost certainly have the Champion’s League in their sights.
I very much doubt that Burnley would be on the radar of an investor who would almost certainly have the Champion’s League in their sights.
I meant as part of future prospects. A team with more fans are going to keep going and buying stuff when they club is relegated, whereas the tv income will drop like a stone. If you've just looked at revenue, I'd imagine that Bournemouth are overvalued in your calculations.
Yes they are difficult to quantify, but then valuing a football club is difficult.
- Thread starter
- #35
Revenue doesn't drop like a stone when relegated due to parachute payments.
- Nov 11, 2009
- 11,346
I have nothing to back this up but I suggest the potential MASSIVENESS of WHU, Newcastle and Everton would blow the cost of buying the club out of the water in comparison to Burnley (who do have a fantastic history, but a long time ago) but will never be as big as the other three clubs again imo
I very much doubt that Burnley would be on the radar of an investor who would almost certainly have the Champion’s League in their sights.
That's true, but then maybe the smart investor will see the profit potential at Everton, Newcastle, WHU (requiring large capital risk) Vs the much lower cost base at Burnley, (plus they're playing style and manager is pretty stable now - not the normal revolving door) and would plump for Burnley as a good solid and pretty safe investment.
Why chase the champions League riches, at huge expense, when youve got a stable, lower cost base earner already.
- Thread starter
- #37
The 'Big Six' have forced through changes to the distribution of Premier League money that will make it nigh on impossible for anyone to break into their cosy little cartel. On one of the other websites owned by [MENTION=6886]Bozza[/MENTION] we revealed this last summer, but it took the mainstream press 9 months to work it out as they were too busy creaming their jeans about Amazon buying one of the minor packages to notice.
http://priceoffootball.com/new-tv-distribution-rules-everyones-a-winner/
http://priceoffootball.com/new-tv-distribution-rules-everyones-a-winner/
Machiavelli
Well-known member
The methodology is laid out at the start of the article.
You expect me to read it? No thanks.