Raising Funds

[Gors Buster]

It’s fine margins in the Championship.
It would seem that we’ve got a recruitment model and set up that everyone is happy with.
If we’re able to offer that little extra to get players like Matt O’Reilly over the line, it’s a win all around.
He who dares, Rodney.

 

[Martyn - Derwydd]

Kieran Maguire reckons a Championship club is worth 3 times its revenue to a buyer.

So if as a previous post says we had 32m revenue in 2024 then that would put a prospective selling price of the club at 96m. Lets say 100m

So for that 50m incoming to raise our value to 150m
then either
it has to be invested in something like buying the stadium
or
we are just about to have some serious sponsorship deals signed soon
that would boost our revenue up from 32m

Or both.

Significant sponsorship deals, which was alluded to at the fan meeting not too long ago, might also explain how our summer signings will not get us into trouble with ffp rules

 

[BanosSwan]

If 50m investment comes in it doesnt mean the value of the club shoots up 50m. At least I dont think it does.

However, if they buy the stadium something like that would increase the value of the club as the club will then come with real estate to any future buyer

That's the whole point of investments, could go up or (if they really balls it up), down.

 

[Londonlisa2001]

If 50m investment comes in it doesnt mean the value of the club shoots up 50m. At least I dont think it does.

However, if they buy the stadium something like that would increase the value of the club as the club will then come with real estate to any future buyer

Yes it does.

The snippet seems to suggest a valuation if £110m pre money and £160m post money.

So the £50m raised would be for a bit over 31% of the club.

I hope the club don’t buy the stadium btw. Would rather it be in the hands of the council. We have the lease anyway as we bought out Stadco. So can maximise its value to us. And future value is somewhat throttled by covenants in place (thankfully).

Buying Fairwood would make sense. Obviously upgrading Academy.

 

[Londonlisa2001]

Probably buy fairwood and upgrade the academy.

Agree.

 

[Londonlisa2001]

Buying the stadium is essential. A long term investment, but definitely worth it. No immediate returns though

Wouldn’t make sense for the club. We already have the lease.

 

[Londonlisa2001]

Kieran Maguire reckons a Championship club is worth 3 times its revenue to a buyer.

So if as a previous post says we had 32m revenue in 2024 then that would put a prospective selling price of the club at 96m. Lets say 100m

So for that 50m incoming to raise our value to 150m
then either
it has to be invested in something like buying the stadium
or
we are just about to have some serious sponsorship deals signed soon
that would boost our revenue up from 32m

Or both.

Significant sponsorship deals, which was alluded to at the fan meeting not too long ago, might also explain how our summer signings will not get us into trouble with ffp rules

If the club is worth £110m and £50m cash is received, it’s worth £160m.

That £110m isn’t far off 3x revenue.

In practice the clubs’ valuations in the championship vary hugely rather than as a multiple of revenue. I don’t think any of them make profits before player trading btw.

I think sponsorship deals will have an impact on future FFP status rather than this year.

I did a post a few days ago about why I think we will be ok for FFP this year.

 

[swansnews]

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