Spurs' valuation breaks £1billion barrier for first time

[mawspurs]

Tottenham's valuation has broken the £1billion barrier for the first time, according to a new study by professional services firm KPMG.

Source: Evening Standard

 

[greywizard2020]

Its great that we're valued so highly, however, I am a little surprised that once the stadium was greenlit & works progressed why there have been no super-rich investors looking to buy the club?

I'm pleased we're in solid hands, however, considering the NFL deal, the regeneration of the area, the capital location, I'd have thought we would have been a very attractive target. Would we be that expensive to buy?

 

[Gassin's finest]

Its great that we're valued so highly, however, I am a little surprised that once the stadium was greenlit & works progressed why there have been no super-rich investors looking to buy the club?

I'm pleased we're in solid hands, however, considering the NFL deal, the regeneration of the area, the capital location, I'd have thought we would have been a very attractive target. Would we be that expensive to buy?

You don't buy a business when it's in the middle of major work like building a new stadium. You wait until the risk is minimal, and then you invest.

 

[Lilbaz]

Its great that we're valued so highly, however, I am a little surprised that once the stadium was greenlit & works progressed why there have been no super-rich investors looking to buy the club?

I'm pleased we're in solid hands, however, considering the NFL deal, the regeneration of the area, the capital location, I'd have thought we would have been a very attractive target. Would we be that expensive to buy?

Investors buy low sell high.

Utd were bought on pure leverage. Glaziers got them cheap on the never never.
Chelsea bought a week before going into administration.
City bout when thaksins assets were frozen after a military cue.
LiVerpool bought after they had been seized by the banks.

We are sitting pretty, financially healthy. There isn't really a great deal to be made from buying us.

 

[buckley]

1 billion ? And the rest our nwhl project is apparently costing 1billion you the have the training ground other properties plus player value I would have said 1 billion was grossly undervalued thats my back of a fag box evaluation

 

[davidmatzdorf]

You don't buy a business when it's in the middle of major work like building a new stadium. You wait until the risk is minimal, and then you invest.

First sentence I agree with, but not the second. The problem with the risks associated with buying the club when the stadium is in progress is that it would inevitably disrupt the process and lower the value. And it's impossible for new owners to manage those risks when they haven't familiarised themselves with the organisation. So you wait until the stadium delivery is assured.

But if you set a rule of only investing when risk is minimal, then you'll buy everything at market value or higher and you'll never see any capital gains. Buying the club when it was in desperate need of a new stadium and an all-round makeover was full of risk. ENIC took those risks in 2001 and now here is an article that describes the resulting capital gains.

 

[davidmatzdorf]

1 billion ? And the rest our nwhl project is apparently costing 1billion you the have the training ground other properties plus player value I would have said 1 billion was grossly undervalued thats my back of a fag box evaluation

Whatever the stadium development is worth is largely offset by the high-interest, short-term loans and other liabilities incurred to build it. The NDP is not going to have a positive effect on the overall club valuation until the borrowing has been refinanced at long-term (lower) rates and the housing has been built and sold off to reduce the debt.

 

[CoopsieDeadpool]

Whatever the stadium development is worth is largely offset by the high-interest, short-term loans and other liabilities incurred to build it. The NDP is not going to have a positive effect on the overall club valuation until the borrowing has been refinanced at long-term (lower) rates and the housing has been built and sold off to reduce the debt.

I see your point, David, but the article specifically states that West Ham's valuation rise is down to their (taxpayers) stadium. So if that is true, would the same not apply to THFC once our own stadium is completed and in use ?

Also, how does West Ham's valuation go up due to a stadium that they don't even own? I'll hold my hands up to being thick as shit, but they sold their old stadium and land as soon as it was vacated, didn't they ? So, does that not actually leave them with fewer assets, so ultimately worth less ?

I don't get it

 

[Buggsy61]

Its worth bearing in mind that this valuation was done under the old White Hart Lane scenario, as its based on the accounts to 30/6/17 (revenues of £306m)
With the Wembley revenues last season just finished, and future cash flow from the new stadium (I think I saw somewhere recently our revenue is expected to be £414m next season) when this exercise is re run this time next year we can probably add around £0.5 BN to that figure so we will be on a par with Chelsea and Woolwich.
No way would Lewis and Levy accept an offer of £1BN now, unless they really were strapped for cash. Too many moving parts at present, but when we are settled in and hopefully still competing in the top 4 we will really see what the club is worth.

 

[Sir Henry]

1 billion....

 

[ComfortablyNumb]

Have I missed something? I can see any justification of the value, just the number. Is that our book value, or have the used some formula to estimate what we might be worth at sale? In my day, 10 times revenues, or 3 times profits would be a usual starting point. We're a cash machine at present, revenue of £300M-odd, I'd say we're worth closer to £3B.

 

[Gaz_Gammon]

I see your point, David, but the article specifically states that West Ham's valuation rise is down to their (taxpayers) stadium. So if that is true, would the same not apply to THFC once our own stadium is completed and in use ?

Also, how does West Ham's valuation go up due to a stadium that they don't even own? I'll hold my hands up to being thick as shit, but they sold their old stadium and land as soon as it was vacated, didn't they ? So, does that not actually leave them with fewer assets, so ultimately worth less ?

I don't get it

Agree Coops, they have no tangible assets, cannot sell the lease and only really have brand rights and players as assets.

Almost worth a whole McDonalds Big Mac and Fries.

 

[davidmatzdorf]

I see your point, David, but the article specifically states that West Ham's valuation rise is down to their (taxpayers) stadium. So if that is true, would the same not apply to THFC once our own stadium is completed and in use ?

Also, how does West Ham's valuation go up due to a stadium that they don't even own? I'll hold my hands up to being thick as shit, but they sold their old stadium and land as soon as it was vacated, didn't they ? So, does that not actually leave them with fewer assets, so ultimately worth less ?

I don't get it

Interesting. West Ham have very little capital value in the stadium - it's just a non-exclusive 99-year lease that has no right to acquire the Freehold . The rent is £2.5m p.a., halving if they are relegated.

It sounds as if the increased value of the club is being based on its increased turnover, resulting from the increased capacity of the stadium. West Ham benefit from that and haven't got the risks associated with carrying debt to pay for a new stadium.

The liabilities are very important, as long as interest rates are not fixed and are susceptible to changes in the economy.

 

[CoopsieDeadpool]

Interesting. West Ham have very little capital value in the stadium - it's just a non-exclusive 99-year lease that has no right to acquire the Freehold . The rent is £2.5m p.a., halving if they are relegated.

It sounds as if the increased value of the club is being based on its increased turnover, resulting from the increased capacity of the stadium. West Ham benefit from that and haven't got the risks associated with carrying debt to pay for a new stadium.

The liabilities are very important, as long as interest rates are not fixed and are susceptible to changes in the economy.

Thank you. So by sheer association, our value will actually go up when we 1, get the Wembley revenue into next years figures. And 2, will continue to go up when we are back in our permanent new stadium?

 

[Disconosebleed]

Tottenham's valuation has broken the £1billion barrier for the first time

And that's the real quiz.

 

[davidmatzdorf]

Thank you. So by sheer association, our value will actually go up when we 1, get the Wembley revenue into next years figures. And 2, will continue to go up when we are back in our permanent new stadium?

Past revenue, i.e., money already received for matches at Wembley, won't have any effect on a valuation for possible sale. Buyers would be interested in the likely future revenues and ways they could add value by maximising those.

I wonder how much the increased turnover adds to our value, compared to the increased opportunities to make the club a global brand and expand the fan base, as a result of becoming perennial participants in the Champions League. Any buyer, except an oligarch-hobbyist wanting a plaything, would be looking for ways they could increase the value of the club and do so better and faster than ENIC.

 

[Everlasting Seconds]

Its great that we're valued so highly, however, I am a little surprised that once the stadium was greenlit & works progressed why there have been no super-rich investors looking to buy the club?

I'm pleased we're in solid hands, however, considering the NFL deal, the regeneration of the area, the capital location, I'd have thought we would have been a very attractive target. Would we be that expensive to buy?

Probably because the price that the present owners expect if they were to sell is too high.

 

[davidmatzdorf]

Its great that we're valued so highly, however, I am a little surprised that once the stadium was greenlit & works progressed why there have been no super-rich investors looking to buy the club?

I'm pleased we're in solid hands, however, considering the NFL deal, the regeneration of the area, the capital location, I'd have thought we would have been a very attractive target. Would we be that expensive to buy?

Probably because the price that the present owners expect if they were to sell is too high.

ENIC are an unwilling seller. They still have value that they want to add to the club before they think seriously about selling. Plus Lewis and Levy are Spurs fans.

If you want to buy a business from an unwilling seller, you have to pay well over market value. Every hostile takeover works like that: the shareholders don't sell unless they get a premium.

 

[Everlasting Seconds]

ENIC are an unwilling seller. They still have value that they want to add to the club before they think seriously about selling. Plus Lewis and Levy are Spurs fans.

If you want to buy a business from an unwilling seller, you have to pay well over market value. Every hostile takeover works like that: the shareholders don't sell unless they get a premium.

I haven't said anything to the contrary, I just boiled it down to a one bullet point. Tottenham hasn't been sold not due to lack of interest to buy, but due to lack of interest of selling except if for a really high price.