Potential DaGrosa Takeover
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I think possibly this may help. The new owner may have an ambition to actually win the league, if the scab 6 get the boot!
Just my view anyway.
I personally think that the news tonight that the self appointed “Top 6”, are now squirming back with tails firmly between their legs, will only be good news for Southampton and any potential takeover this summer.
The premier league will now get stronger, and also shows that 14 clubs hold a lot more sway than the self appointed 6 thought, along with the passion of English fans.
Will show investors that you can buy a decent premier league club like Southampton, and still have aspirations to reach for the stars.
Proud to be English tonight, and well done to the fans of every club, not just the self appointed.
The premier league will now get stronger, and also shows that 14 clubs hold a lot more sway than the self appointed 6 thought, along with the passion of English fans.
Will show investors that you can buy a decent premier league club like Southampton, and still have aspirations to reach for the stars.
Proud to be English tonight, and well done to the fans of every club, not just the self appointed.
And as I said before, well done to the government for standing firm.
"The main draw for Lopez, who is said to have conducted a detailed examination of the club's accounts, is the value of Southampton's current squad: € 260m at the very least."
This sentence is slightly worrying though, it's only worth that if we sell them all.
This sentence is slightly worrying though, it's only worth that if we sell them all.
Yay, another asset stripper - The only kind of owner that seems to be interested in us at the moment.
That is true, but I’m not sure who in our squad would attract a profit without crippling us at the moment.
Ings?
Prowse?
Armstrong?
Tella?
Maybe Vestergaard at a stretch.
Imagine us without them...
I'm trying to be glass half full and thinking it's about bringing good young talent in, keeping them a couple of years, shifting them.
Wesley Hoedt must be worth £30m alone...
30 million carrots maybe. Not 30 million pounds
Yeah, there's nothing inherently wrong with that model. You just i) have to sell your assets at close to peak value (which means not being too eager to sell) and ii) invest heavily in scouting, and iii) buy wisely. Use the profits to improve your asset base further, which in turn should make the club more valuable, if done right.
Look at Brentford. They're a win away from the Premier League and it's basically been funded by chaining purchases and sales of young attackers (where they've done unbelievably well):
2014/15: Bought Andre Gray for ~£600k. Bought Scott Hogan for ~£850k.
2015/16: Sold Andre Gray for £11m.
2016/17: Sold Scott Hogan for £9.5m.
2017/18: Bought Ollie Watkins for £6.5m. Bought Neal Maupay for £1.8m.
2018/19: Bought Said Benrahma for £1.5m.
2019/20: Sold Neal Maupay for £20m. Bought Bryan Mbeumo for £5.9m.
2020/21: Sold Ollie Watkins for £30m. Bought Ivan Toney for £5m.
Basically, they have turned their initial investment of about £1.5m into Toney, Mbeumo, and almost £50m in funds to use elsewhere.
Recommended reading - there's several of these PEF investors sniffing around Saints right now: https://www.economist.com/finance-a...ns-private-equity-investors-interest-in-sport
https://www.privateequityinternatio...k-how-private-equity-fell-in-love-with-sport/
https://www.bdo.co.uk/en-gb/insight...ivate-equity-in-sport-it-will-only-get-bigger
if you want to understand private equity investment in sports the question is what are they getting out of it. Basically, what they are after is the Rights revenue.
At the moment they are looking for small stakes in valuable properties such as the All Blacks which recently sold out 12.5%. The EPL is seen as a holy grail because it's so valuable (but that has topped out IMO for the time being).
Without investment we have seen what happens to the club, now we are having private equity dangled in front of our noses. The timing is not co-incidental, COVID has ravaged the finances of many sports and equity is moving in on the weaknesses. Problem is, we don't ship millions of shirts, our image rights are small fry, our match day turnover would be somewhere in the bottom tier, we don't get Europe and we have significant debt. Not a lot there for private equity to froth about.
They will be 'inflexible' about what they take out of the club, they will be taking their 30mill out every season regardless of club/teams needs. If the 30mill isn't there then things will start going on the market. Nobody in private equity will be taking a bath on a sports club they will strip it and sell it brick by brick till they get their profit.
If you think it might not be that bad, look at what private equity does in the american health care system. If they don't give a **** about peoples lives, how much do you think they will care about your football club and its fans.
Minority stakes in big clubs make far more sense for PE firms than majority stakes in smaller ones, and anyone who buys a club like Saints to make a year-on-year profit has no business managing anyone's money, including their own. The profit to be realized, if all goes well, is on the sale of the club itself, but that requires patience, competence, and sometimes even a willingness to lose money in the short-term, none of which are qualities I ascribe to equity vultures.
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