ToffeeWeb - Season 2008-09

The Mail Bag

How much?!

Newcastle are apparently in talks with American Investors about a £420m takeover of the club, 12 months after being bought out by billionaire Mike Ashley for £134.4m. Two things that really puzzle (and annoy) me about this...

1. How have they managed to attract such huge investment for the 2nd time in 12 months?

2. How the hell are they now worth £420m???

Apparently Ashley's put £100m into the club since buying it to pay off debts and invest in the squad, so let's say for arguments sake that now makes the club worth £234.4...how has the value of the club shot up by £185.6m in 12 months? They finished mid-table, won no trophies, didn't qualify for any European competitions and replaced their manager yet again.

It really makes me wonder how much our club is worth? Ok the Geordies have a larger stadium than we do and greater revenue streams mainly because of this (as well as being the only club in their city), which is why I could understand them being worth £134.4m last year, but if they're now worth £420m, are we really only worth the £50m that's often mentioned?
Paul O'Hanlon, Liverpool Posted 04/07/2008 at 14:43:59

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Shaun Brennan
1 Posted 04/07/2008 at 15:18:00

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To an investor Newcastle surely must be more attractive than Everton. The have a monolopy of fans in the region, 1 city team. They sell out most weeks. They all buy Newcastle shirts. Surely the ground alone must be work a couple of hundred million? My guess it would be linked to future earnings too.

Dan McKie
2 Posted 04/07/2008 at 15:20:38

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£420 million is what Mike Ashley wants for the club, that doesnt mean its worth that much or that it will end up selling for that much! Ashley has clearly realised that it will probably take all of his cash and then some to make Newcastle any good!

Richard Harris
3 Posted 04/07/2008 at 15:13:30

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That’s just Mike Ashley being a ruthless businessman and hoping to con some hedge fund borrowers into buying over the odds so that he can make a very tidy profit for his brief involvement. He tried to fool the football world by sitting with the fans and wearing the shirt but apart from the sheep- like Geordies, no-one else was fooled. The club is way over valued but the stadium is always packed and everyone seems to buy the shirts.

Jay Harris
4 Posted 04/07/2008 at 16:14:04

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According to a rececent Deloitte Haskins report EFC was valued at £98 million and would have been substantially more except for the £60 million debt and poor commercial income.

I wonder what KW has been doing in his spare time..... not running Everton obviously.

Matt Kay
5 Posted 04/07/2008 at 16:15:21

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Agree with you Richard, All the barcode shirt wearing sheep would still go to that pigeon loft even if they were owned by aliens. He’s a shrewd businessman out ot make a quick buck on the back of their loyal fans

Terry Smith
6 Posted 04/07/2008 at 16:15:15

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Isn't this how he made his fortune by selling a company that he got for nothing and making millions or even billions???
And as soon as it was sold the company want arse over tit!!! Let's hope the same happens to Newcastle because if there is any team that deserve to go down it that shower in the northeast. They have not got a clue and they do really believe they are a big club.

Steve Collins
7 Posted 04/07/2008 at 16:56:28

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History or honours mean nothing to investors.

The football side of things really wouldn’t matter to them too much.

The fact Newcastle have a big stadium decent facilities and they sell out most weeks.

Couple that with the fact they really are the only team in the city to market.

It all adds up good for investors. Any decent investor would know all they would have to part with is about £20 or so for spending and thats it. (if they were succesful in their takeover)

Derek Thomas
8 Posted 05/07/2008 at 08:10:40

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So what if they are the only club in the town??

We may soon be the only club in Knowsley!!

What does that make US worth?

Steve Collins
9 Posted 07/07/2008 at 10:55:19

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Derek it is easier to market anything if there is no direct competition in that area. So Newcastle being the only team there is potentially worth more to investors.

With Liverpool being a successful brand it is hard for Everton as a second team to bring in investors. Well that and the incompetent board.

Well in answer to your question in marketing terms it could be better for Everton. As much as I am against the move it could if done properly be a good thing. But it isn?t and it never will be.