Latest takeover.......this is karma

[hd1]

Nobody else wanted to but a prem team in London, nobody. Stupid cunts

They didn't, that was the problem. You can trot out the names of Fernandes etc. but they were either crooks or broke, and none of them could put up the money to prove they were serious bidders.

[jameskel]

And you know how? G & S by any chance

[Dwayne Pipes]

Hold up a minute we’re fucking skint not got a pot to piss in ?
Here’s £350 M you pair of cunts
Fuck off
Well you’re not that fucking skint then you despicable pair of old fuckers.

[ToneLoc]

Hold up a minute we’re fucking skint not got a pot to piss in ?
Here’s £350 M you pair of cunts
Fuck off
Well you’re not that fucking skint then you despicable pair of old fuckers.

Their “skint” because they owe themselves money?.
Imagine that.
Imagine having 1 million quid in account 1 and 50 quid in account 2 and pleading poverty because you only have 50 quid.
“What am I gonna do...... I can’t switch on the electricity or put food in the fridge cos I owe myself all this money”.

[Whiskyman]

Google is a dangerous thing,but...according to KMG by Enterprise Value - West Ham is the 18th richest on their list at £561M

No idea how that is calculated and I imagine there must be a built in % potential value. So I don't know whether their valuation is a bench mark and I'm not sure what "enterprise" means in the "value" context.

Over to the clever owls,who frequent this site to explain what's what...

ps btw GSB out/sell

Not sure about the wise owls bit but I'm happy to give the silly old cunt take on it.

Like anything else it valuation depends on whether you're buying or selling but VERY basically the ACTUAL value of a business is the difference between it's assets and it's liabilities Assets can be called tangible or intangible. The tangible ones are the Declan Rice's. They can be sold relatively easily and turned into cash. Even bog basic crap, like paper clips can be included in the tangible assets column. Intangible assets are things can't be sold as an item but do have some value. For a football club that could include stuff like the badge and, you'll love this one, brand recognition and goodwill. We all know what liabilities are so a simple business valuation is to take the asset value, subtract the liabilities and----voila, there's your compqny value.

That method would work for a small business. Say a car body repair shop. But a multi million pound industry like football is more complex. Future earnings and growth potential would come into play. Will TV deals still be as lucrative in the future, for example. Future earnings are more difficult tp predict for football clubs because success on the field equates to bigger earnings. So if the club becomes the "World class team" that Ms Brady predicted all those years ago earnings would be considerably more than those generated by the present Mickey Mouse shit show. So you can see the potential for vastly different views on that element of the valuation process can't you ?

Any potential buyer will be looking to get a return on their investment. That return can be in hard cash by way of dividends, or promotion of another business, or nation state as in Man City's case, or of course a combination of both.

The valuation of West Ham ? If you and I formed a consortium to put a bid together my initial thinking would be there are more negatives than positives at the present time. The business seems to need a root and branch rebuild which will cost. We need to buy the ground in order to carry out the necessary improvements to make it more football friendly even though it's nowhere nearly as bad as many would have us believe. There are signs that the academy has started producing decent talent again but we are light years behind our competitors in London when it comes to training facilities. We don't have a massive overseas following because we aren't a European competitor., so we're playing catch up with Chelsea, Spurs & Arsenal, as well as the other usual suspect when it comes to earning potential overseas. And, perhaps most disturbingly, the football watching public today wants to be associated with success. Our fan base, like I guess, a lot of clubs is ageing. Is that fan base being replaced by younger fans ? I can't be certain but personally I doubt it.

Apparently the club was valued at £105 million when he acquired it. His valuation figure is, also apparently, £700 million. If I were representing a consortium interested in buying the business the first thing I would ask the seller to demonstrate would be how the business has appreciated in value by £595 million since Januaryu 2010.

Sorry if that's all a bit waffly but, as I said, that's the silly old cunt explanation. I'm sure others will have a different take.

[ToneLoc]

Google is a dangerous thing,but...according to KMG by Enterprise Value - West Ham is the 18th richest on their list at £561M

No idea how that is calculated and I imagine there must be a built in % potential value. So I don't know whether their valuation is a bench mark and I'm not sure what "enterprise" means in the "value" context.

Over to the clever owls,who frequent this site to explain what's what...

ps btw GSB out/sell

Not sure about the wise owls bit but I'm happy to give the silly old cunt take on it.

Like anything else it valuation depends on whether you're buying or selling but VERY basically the ACTUAL value of a business is the difference between it's assets and it's liabilities Assets can be called tangible or intangible. The tangible ones are the Declan Rice's. They can be sold relatively easily and turned into cash. Even bog basic crap, like paper clips can be included in the tangible assets column. Intangible assets are things can't be sold as an item but do have some value. For a football club that could include stuff like the badge and, you'll love this one, brand recognition and goodwill. We all know what liabilities are so a simple business valuation is to take the asset value, subtract the liabilities and----voila, there's your compqny value.

That method would work for a small business. Say a car body repair shop. But a multi million pound industry like football is more complex. Future earnings and growth potential would come into play. Will TV deals still be as lucrative in the future, for example. Future earnings are more difficult tp predict for football clubs because success on the field equates to bigger earnings. So if the club becomes the "World class team" that Ms Brady predicted all those years ago earnings would be considerably more than those generated by the present Mickey Mouse shit show. So you can see the potential for vastly different views on that element of the valuation process can't you ?

Any potential buyer will be looking to get a return on their investment. That return can be in hard cash by way of dividends, or promotion of another business, or nation state as in Man City's case, or of course a combination of both.

The valuation of West Ham ? If you and I formed a consortium to put a bid together my initial thinking would be there are more negatives than positives at the present time. The business seems to need a root and branch rebuild which will cost. We need to buy the ground in order to carry out the necessary improvements to make it more football friendly even though it's nowhere nearly as bad as many would have us believe. There are signs that the academy has started producing decent talent again but we are light years behind our competitors in London when it comes to training facilities. We don't have a massive overseas following because we aren't a European competitor., so we're playing catch up with Chelsea, Spurs & Arsenal, as well as the other usual suspect when it comes to earning potential overseas. And, perhaps most disturbingly, the football watching public today wants to be associated with success. Our fan base, like I guess, a lot of clubs is ageing. Is that fan base being replaced by younger fans ? I can't be certain but personally I doubt it.

Apparently the club was valued at £105 million when he acquired it. His valuation figure is, also apparently, £700 million. If I were representing a consortium interested in buying the business the first thing I would ask the seller to demonstrate would be how the business has appreciated in value by £595 million since Januaryu 2010.

Sorry if that's all a bit waffly but, as I said, that's the silly old cunt explanation. I'm sure others will have a different take.

Your penultimate paragraph highlights why they’re totally fucked in justifying their evaluation price. Neither can they or would they know how to.

[Clayton]

Two bids down , would expect the consortium to come back with one final offer , something in the region of £500m .
Hopefully sooner rather then later .

[h69]

Google is a dangerous thing,but...according to KMG by Enterprise Value - West Ham is the 18th richest on their list at £561M

No idea how that is calculated and I imagine there must be a built in % potential value. So I don't know whether their valuation is a bench mark and I'm not sure what "enterprise" means in the "value" context.

Over to the clever owls,who frequent this site to explain what's what...

ps btw GSB out/sell

It's about potential in our case. Teams like Juventus and Real Madrid sign deals based on ubiquity. Always in the CL, always pushing for domestic titles, always with the superstar players.
This ubiquity attracts deals like Real Madrid selling 4 years of sponsorship rights for
£200m up front. Or Barcelona signing a 10 year kit deal with Nike worth £155m a season.

It's that potential to go from £500m club to a Citeh or Plastics £2.2billion club. And all the sponsorship that goes along with it.

Personally, I can't blame the dwarf for turning down £350m and £400m.
Forbes values Newcastle pretty much dead on their agreed sale price -- Forbes estimate $381(USD) /reported sale price £300m/$386m (USD).
Whereas Forbes values West Ham way higher than todays reported follow up offer -- Forbes estimate $616m(USD)/£478m /today's reported offer $516m(USD)/£400m.

That amounts to the dwarf getting shorted by £40m on an independent valuation. And that's before he has to pay the piper.
There's a deal to be done, but it's gonna take at least another £75m.

Spot on. No one in their right mind would sell that low.

[h69]

No idea where the 700M is coming from?

A club in turmoil.....supporter unrest, player unrest, a laughing stock in the media, regular relegation fodder, the “academy” in tatters (at best impotent for getting talent into the 1st team) , no strategy or processes for footballing progress at the club, empty stadium due to COVID-19, mass uncertainty over TV revenue (the Chinese have already bombed out and can YOU see Sky willing to pay as much next time when they renegotiate? and that’s IF we’re even in the Premier League then)....... I’m sure I could go on........
Edit: I hope that 700M includes Bilbo’s loan?

The club is worth a shade under 500m. The bidder will always start low (300m) and the owners will always want high (700m). Its how most negotiation goes. Eventually they may or may not settle on a figure but it will be likely around 500m.

That is how negotiations like this always work. It is why I always laugh when people complain when we don't offer an asking price straight away for a player.

I was listening to Ex the other night on his podcast and he was saying that generally in football, teams make a bid that they know wont get accepted so that they can gauge what the selling club really wants with a view to making a second bid. It is how journalists work out what to put in the 'They want x for this player or this player is not for sale'

Occasionally (and it is rare) the club selling says yes but then you have to investigate why that is. It happened with Payet by all accounts

[h69]

So am I mate but if I owned something that I thought I could get 700m from, I would not take 300m

I love the club, but not that much

All jokes aside though mate, but at what point does money mean fuck all and enough is enough. I mean apart from a select few in this world most of us will never know what it's like. But if your a genuine fan, a billionaire and you know your kids will never want for fuck all then surely you sell up and go and enjoy the rest of your days on a beach and let someone else take your beloved club forward.
But then again if money is your guvnor then greed takes over I suppose.

I have always been of the opinion that the people that make their money (ie not inherit it) are rich because they generally dont short themselves on deals. The richest people can be the hardest to do a deal with so I doubt very much that they would take a hit on the price just because there is a bit of unrest. There are other investors that they have a duty to to get the best price for the club if they sell also.

I am sure they will sell but someone needs to be serious. My understanding is that no one has actually made a formal bid. They have only discussed a possible deal informally. Ideally I believe they are looking for investment for 10% but have discussed possible sale fees but no bid has been formerly offered.