Now that we are in the Premier League and guaranteed a minimum of £90m over the next five seasons, even if relegated in our first season back in the top flight, I was wondering what someone would have to pay to buy the Swans? What do you think?
Very difficult question to answer to be honest, we are only worth what someone would be willing to pay, and as our assets are only the players, I would say about £25m-£35m when you take into account other things like the school of excellence and so on, the £90m is a red herring as a lot of that is spread out over 4 years if we go down. For us to increase our value we need assets like the liberty stadium and academy, plus to stay up in the premier league for longer than 1 season.
Jager, I didn't mean to imply that the club could be worth £90m - that is the guaranteed income stream, from which the (increased) running costs need to be paid. I would tend to agree with your value range. However, along with the playing squad, the guaranteed income stream can also be viewed as an asset, as can the Swansea City brand etc.
as you pointed out the income stream is an asset as its guaranteed , but the costs for running the club have increased also, plus if we do expand the stadium the value of us could either go down or up, depends how you look at it, the value imo will increase significantly if we stay up, and I can't imagine investors coming in without tangible assets like a stadium
You are right the value should increase still further if we stay up. As for owning the ground, I don't think that Man City actually owsn the City Of Manchester Stadium (Etihad Stadium) - or have they now bought it?
I'm sure that I got told something dodgy went on in regards to Man City acquiring the "Eastlands Stadium", in regards to two brothers. It was something like one was on the Manchester planning council, and one worked for Man City, and it didn't get flagged as a "conflict of interest" when they wanted to acquire it... In response to the original question... I don't think there's sufficient space on a cheque to write a number that Huw and co would accept!
Scottswan, "I don't think there's sufficient space on a cheque to write a number that Huw and co would accept!" Ha Ha !! You are surely not suggesting that Huw and co would not put the club's interests before their own???
whatever the value is, the trust holds 20% of the club, so it will not be sold or new investors in without permission from them, dai and others were saying there is a lack of investment last season, thing is if investment came in it would either have to replace certain directors or dilute the shareholding of the club, neither of which will be favourable to the trust, so would not go ahead imo
Can't the current owners just sell their 80%? And why would the supporters trust be worried about having a smaller percentage of a larger amount? In any case I doubt any big investor would be interested.
because it dilutes the shareholding, so if it goes down to say 15% of the share capital it could mean that they would not have the right to have a director on the board as its dropped below the threshold, its vitally important that the trust has a large minority share, this is the people's club and we are the only club in the premier league with such a large supporters trust involved with the club. http://www.swanseacity.net/page/ClubOwnershipArticle/0,,10354,00.html
It would depend on the wording of any Shareholders Agreement - that would determine the right of the Trust to have a representative on the Board. Also, I don't believe that 20% is per se a "large minority share". And as for getting Dai on the Board................................................
You are wrong there, no other club in the premier league has any supporters trust owning such a large portion of the club, we are unique in that! Also owning a fifth of any business is a large enough share that nobody can do anything without approval, if investment comes in it can only come if a director steps down, or the shares diluted down, the other of course is a complete buy out of all share holders, something that cannot be done at present without a vote from the trust members.
Also please read this link about why we need the trust, and what are the functions of the trust, its important that every Swans fans understand who the trust are, why they were setup, and the role of the trust. http://www.swanstrust.co.uk/PageContent.aspx?id=417
So if a very big investor wanted to buy the club, and it meant that the Swans would most likely end up playing in the Champions League, would the supporters trust turn them down? I can see how the supporters trust has been good for the Swans, but could it end up stopping the club from growing? The way you explain it means that there can never be any new investment in the club, unless I have misunderstood you. In any case, any new agreement would depend on what the supporters trust agreed with the new owners. It doesn't have to be related to shareholding. The supporters trust could own 1% of equity but still hold 20% of voting rights. On a more hypothetical note, if the supporters trust did agree to sell out completely, who would get the money? In other words, who 'owns' the supporters trust. If they sold out and had £20m in the bank, who would end up getting that money?
The supporters trust is there for a reason , and that is to put the interests of the fans forward to the board, they were instrumental in getting petty out of the club! As for investment in, the swans don't need any as the club lives within it's means and there is very little need to have external money coming in , so self sufficient ! If someone did come in for the entire club I think it would be turned down to be honest, because the guys who own the club are not in it for the money and they do have a rather a lot of money in any case.
Exactly Jager. The only way I ever see us being completely privately owned now is if some millionaire benefactor from Swansea comes in covered in SCFC tattoos. If they don't clearly love the club as much as the current regime, I don't see any change in the heirarchy coming.
I do not think that I am wrong - 20% is not necessarily a "large minority share". Your comment about there being no other club in the premier league that has a supporters trust owning such a large portion of the club, is a separate, albeit important point in its own right
So what do you think is a large minority share ? Maybe 49.9% ? The Morgans only own 2.5% more than the trust but it's widely acknowledged that they are the power behind the club, and as they are the only ones who have a higher share of the club, the trust's 20% is definitely a large minority share
This is not necessarily right as most of the important decisions made by a company have to go through by way of special resolution which only needs 75% (share of voting rights not amount of shares) agreement to go through hence whilst although the trust has a say approval would not necessarily be needed if we were to sell the club for example, unless there is some agreement in the company's articles which state that 100% of existing shareholders need to approve for shares to be sold to a third party. If all voting rights are equal to shares (which i doubt they are) then the best amount to have would be 25.1% as then any of the major decisions which need a special resolution to pass can be blocked
