How do you value

LenGlover

a football club?

There are various accepted methods of valuing other businesses essentially centred around average earnings times a multiple, a percentage of turnover plus stock or net assets plus "goodwill" eg the name or brand.

However valuing a football club has to be more problematic. For a start virtually every club in the land makes losses so earnings methods are something of a no no I'd have thought. Turnover is also difficult to quantify as it is dependent on how often (or little) you appear on the telly and how many come to watch. Those in turn will depend on the success (or not) on the pitch although having a high proportion of season ticket holders helps budgeting to some extent. Finally some clubs own their ground others don't so club assets are also difficult to quantify. What about the value of players? A nominally multi million pound player is worth nowt if his contract has expired.

To get to the point what is CAFC realistically worth?

Henry Irving

Something is worth whatever someone else is willing to pay you for it.

Badger

Totally agree.

RodneyCharltonTrotta

I think the board and potential investors have been pondering this same question for months. Someone will post a sensible anwser on here tonight and bingo takeover will occur tomorrow.

LenGlover

[cite]Posted By: Henry Irving[/cite]Something is worth whatever someone else is willing to pay you for it.

Yeah but how do they decide what that figure is?

Henry Irving

[cite]Posted By: LenGlover[/cite]

[cite]Posted By: Henry Irving[/cite]Something is worth whatever someone else is willing to pay you for it.

Yeah but how do they decide what that figure is?

Depends why you are buying it, how much you can spare/afford to lose.

I think £425 for my ST is a good price. A non-football fan would think it a waste of money. (yes, I know, know some Charlton fans would too)

Some think £75 to see a pop singer is well worthwhile, others wouldn't cross the street to watch them.

Yes you could get a P/E ratio but that would value most football clubs at £0.00

Soton went for £12.5m in the same league, stadium similar size so as a comparison that could be a starting point.

RodneyCharltonTrotta

Market rate for a club of similar size possibly and factor in the projected earnings for 5 year plan along with liabilities and potential losses. Quite easy to see how it could be a hard haggle as sellers will play up future potential profits and play down possible losses to make it a more attractive proposition (but pondering then why they should be selling in the first place).

Imissthepeanutman

I think it was Lord Weinstock of GEC fame who when asked the price of GEC shares said 'are you buying or selling?'

LenGlover

[cite]Posted By: Henry Irving[/cite]

[cite]Posted By: LenGlover[/cite]

[cite]Posted By: Henry Irving[/cite]Something is worth whatever someone else is willing to pay you for it.

Yeah but how do they decide what that figure is?

Depends why you are buying it, how much you can spare/afford to lose.

I think £425 for my ST is a good price. A non-football fan would think it a waste of money. (yes, I know, know some Charlton fans would too)

Some think £75 to see a pop singer is well worthwhile, others wouldn't cross the street to watch them.

Yes you could get a P/E ratio but that would value most football clubs at £0.00

Soton went for £12.5m in the same league, stadium similar size so as a comparison that could be a starting point.

So a club of similar size in administration £12.5m.

Administration is not an option (or words to that effect) for us so what are we worth i wonder?

Henry Irving

Well the price thrown about at the time of Zebeel was £40 - £50m although I don't think that was every given as a definitive figure.

So it the board are willing to write of £30 of investment (bonds and equity) then that leaves a figure between £10m and £20m as an uninformed guestimate.

I say £17,420,000 including the training ground and other land : - )

Sam lloyd

We're priceless ;-)

Scoham

£18.25m

PeanutsMolloy

[cite]Posted By: LenGlover[/cite]a football club?

There are various accepted methods of valuing other businesses essentially centred around average earnings times a multiple, a percentage of turnover plus stock or net assets plus "goodwill" eg the name or brand.

However valuing a football club has to be more problematic. For a start virtually every club in the land makes losses so earnings methods are something of a no no I'd have thought. Turnover is also difficult to quantify as it is dependent on how often (or little) you appear on the telly and how many come to watch. Those in turn will depend on the success (or not) on the pitch although having a high proportion of season ticket holders helps budgeting to some extent. Finally some clubs own their ground others don't so club assets are also difficult to quantify. What about the value of players? A nominally multi million pound player is worth nowt if his contract has expired.

To get to the point what is CAFC realistically worth?

Len,
A while back Henry & I corresponded on this board on the value of Millwall shares and worked out that if you purchased a single Millwall share and received the share certificate, that was a cheaper way of wiping your arse than using a sheet of toilet paper.
Regrettably, it would seem that we too have joined the Andrex Club.

SoundAsa£

I've calculated each of the 92 league clubs individualy and come up with the average of £7,456,931.73p.....hope that helps!