It's not so much the purchase price, but the fit and proper test.
When you buy an EFL Club, you have to provide - i) your source of funding, and ii) sufficiency of funding.
The first isn't an issue, if you have £28-£34million in the bank (assuming you pay off the debt owed to Levien and Silverstein), you have it in the bank.
The hurdle is the sufficiency of funding. The general rule of the thumb for the EFL tends to be that you need proof you can fund the Club's operations for two seasons. This (along with a few other items) is why the Derby sale to that Yank collapsed.
Swansea has operating expenses of £43million, but income (excluding player sales) was £24million last year. This will increase post COVID, but using those figures, a potential buyer would need to stump up -
- £30million to buy the Club and potentially pay off the debts.
- £19million for the first season, to cover the shortfall of income v outgoings.
- £19million for the second season, to cover the shortfall of income v outgoings.
We are already at £68million, without accounting for improvements to the playing squad.
If a local group purchases the Club, they will likely make immediate signings to curry favour with the fans, and those will either need to be funded by an equity injection or by taking on debt. So that's more money.
I personally can't see a local consortium willing to burn north of £68million on a Championship club.
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Rough Calculations, incase anyone is interested as to how I got to my valuation :lol: -
Revenue multiple approach.
1.2 multiplier x turnover (£24million) = £28,000,000
1.4 multiplier x turnover (£24million) = £33,600,000
Enterprise Value = £28,000,000 - £33,600,000
