redandblack Posted February 16, 2014 Share Posted February 16, 2014 The value of the club is only it's income, we don't own the stadium, don't own a training facility, We have no licensed club (i.e. A leagues club), we have no assets, so when someone's buys us they're really not buying a whole lot, Who knows after a few years when we might hit a poor patch of form and the crowds might start to dwindle away to a steady 10K a game, the income that the club generates from us isn't guaranteed. That's not true. You haven't defined the source of the "income", and you fail to consider the worth of the brand. Prydzopolis 1 Link to comment
Tranquilo Posted February 16, 2014 Share Posted February 16, 2014 The problem is that we dont own our own stadium, we dont own the training facility, we dont own a licensed club like a leagues club that most NRL teams do, so thats why the value of the club is only $12 million. If we had up to or more than 10 bidders lining up to purchase the club, then the price would be a lot higher The reason why clubs in europe get sold for upwards of a $1 billion dollars is because the assets are worth a lot of money, they own their own stadium and training facility as well as some clubs also own the local business around the stadium, retail outlets, pubs, resturants, etc. And when they are being sold there are usually heaps of billionaires looking to buy the club and that drives the price up. you realise most of the elite clubs in europe are in massive debt, its just a play thing for rich billionaires. No one in business buys a football club to make money, its just a rich mans hobby. http://www.footballfairplay.com/top-10-football-clubs-in-most-debt/ redandblack, WhoDoWeSingFor and Balkanite 3 Link to comment
GunnerWanderer Posted February 16, 2014 Share Posted February 16, 2014 The problem is that we dont own our own stadium, we dont own the training facility, we dont own a licensed club like a leagues club that most NRL teams do, so thats why the value of the club is only $12 million. If we had up to or more than 10 bidders lining up to purchase the club, then the price would be a lot higher The reason why clubs in europe get sold for upwards of a $1 billion dollars is because the assets are worth a lot of money, they own their own stadium and training facility as well as some clubs also own the local business around the stadium, retail outlets, pubs, resturants, etc. And when they are being sold there are usually heaps of billionaires looking to buy the club and that drives the price up. you realise most of the elite clubs in europe are in massive debt, its just a play thing for rich billionaires. No one in business buys a football club to make money, its just a rich mans hobby. http://www.footballfairplay.com/top-10-football-clubs-in-most-debt/ arsenal FC (financial corporation) are a rare club doing well. its debatable if they are actually a football club though Tranquilo, theguyyouwishyouwere and Prydzopolis 3 Link to comment
Boban Posted February 16, 2014 Share Posted February 16, 2014 The problem is that we dont own our own stadium, we dont own the training facility, we dont own a licensed club like a leagues club that most NRL teams do, so thats why the value of the club is only $12 million. If we had up to or more than 10 bidders lining up to purchase the club, then the price would be a lot higher The reason why clubs in europe get sold for upwards of a $1 billion dollars is because the assets are worth a lot of money, they own their own stadium and training facility as well as some clubs also own the local business around the stadium, retail outlets, pubs, resturants, etc. And when they are being sold there are usually heaps of billionaires looking to buy the club and that drives the price up. you realise most of the elite clubs in europe are in massive debt, its just a play thing for rich billionaires. No one in business buys a football club to make money, its just a rich mans hobby. http://www.footballfairplay.com/top-10-football-clubs-in-most-debt/ arsenal FC (financial corporation) are a rare club doing well. its debatable if they are actually a football club though They are specialists in their field though........just ask Jose! Link to comment
Prydzopolis Posted February 17, 2014 Share Posted February 17, 2014 You haven't taken into account that Parramatta stadium is getting an upgrade next year of 1,500 to both ends. Doesn't that mean an extra 3,000 seats at 15 a seat equates to an extra $1-0.5m at least! Its actually an extra 4,000 seats but if the club extends the membership number we will probably only gain a 3,000 increase in attendance which is what the $15 a head is based on. We only get 13 home games so that only about $600k increase in revenue. The $12m figure I calculated is the order of magnitude of our revenue. I have no idea how that translates into value. The only thing I will say is that I can see why Heart's price would match or beat ours. With good management they have the potential to match Victory's $14.5m revenue which would be nearly double what they get now and they break even on the lower figure already by selling players. Manchester City have paid a premium for the potential of Heart. Additionally I've heard a rumour that they "charged" the new entity $25m for intellectual property and that "income" helps them to move closer to satisfying UEFA's FFP regulations. Two points: Second, what about the non-tangible value of the club, surely WSW is worth more than just value of its income? This right here!! Merchandise and ticket sales, particularly first year (and not to mention our winning streak in that year) don't really excite me for future or sustained revenue potential.This is where the club's value would come from. There are two ways I look at it: The first is as the club itself. How do you value the most important aspect of a club (its members and community) when it can not be sold or transferred? The second, is looking at the business of a sporting franchise. (I hate this method, but it's the reality). At the moment our membership has been capped, merchandise has been rushed into and the league itself is only starting to make an entry into the mainstream market, in this country. For me this indicates value potential. I think it's important that we lock in an Asian player who will provide the profile for asian interest, as happened with Shinji. This will help to get the valuable exposure in Asia and provide us with a market that the nrl and afl could only dream about. This exposure, imo, will lead to the growth in the areas that sustain future reveniew: demand in the wsw brand and tv rights. Also, imo, the club should drop the prices of the non-ticketed memberships. To me, these are the concepts that will determine "value" from an asset sense. The fact that every one of these areas have huge growth potential is the key. 100% agree here, the fact that memberships have been capped and the merch shows the potential growth of the club. Also a big Asian marquee is necessary to keep our link to Asia plus its potential growth in the area. Non-ticketed memberships, you have a point to decrease the price to get more members on board but I am not so sure of this. Mainly because you should pay a price to become a member, if it becomes too cheap then every Tom dick and Harry would become members. The price is also a clever way to limit memberships so not all the tickets are purchased on match days leaving some for others to experience a wanderers experience. On our memberships being capped, it is the reason why I am so desperate for the stadium upgrades to happen!! The quicker we can increase the size of Parra Stadium, more people we will be able to get on board as members or even just supporting the wanderers Link to comment
Wobblies Posted March 18, 2014 Share Posted March 18, 2014 Agree with all that, however, we need existing Members to turn up. wendybr 1 Link to comment
Prydzopolis Posted March 18, 2014 Share Posted March 18, 2014 Agree with all that, however, we need existing Members to turn up. Think the buy back scheme should fix that! Link to comment
Stokz Posted March 18, 2014 Share Posted March 18, 2014 From Ray Gatts Twitter: As revealed in today's The Australian. Frank Lowy confirmed former Westfield employee,family friend David Slade is 4th investor in Wanderers It also appears the sale price for the Wanderers is around the $10m mark. I really don't like Lowy selling to his friends BS - first Lederer, now Slade. What was the point of hiring UPS? I have a feeling this is not going to end good for us, i doubt any of Lowys mates will be sticking by the fans when going against the FFA, just look at ESFC. Link to comment
HungHuynh Posted March 18, 2014 Share Posted March 18, 2014 From Ray Gatts Twitter: As revealed in today's The Australian. Frank Lowy confirmed former Westfield employee,family friend David Slade is 4th investor in Wanderers It also appears the sale price for the Wanderers is around the $10m mark. I really don't like Lowy selling to his friends BS - first Lederer, now Slade. What was the point of hiring UPS? I have a feeling this is not going to end good for us, i doubt any of Lowys mates will be sticking by the fans when going against the FFA, just look at ESFC. 1 Good thing out of this.. these people have some power in influence government to bend over. Look at what happen to canterbury Oasis and Orangegrove DFO. Link to comment
Prydzopolis Posted March 18, 2014 Share Posted March 18, 2014 It seems like the UPS thing was just a move by the FFA to make it appear like an open and fair process, then lowly ends up choosing his mates anyway?? I guess we can only pass judgement once they start making decisions and what they have to say about the future of our club. Link to comment
Carns Posted March 18, 2014 Share Posted March 18, 2014 I really don't like Lowy selling to his friends BS - first Lederer, now Slade. What was the point of hiring UPS? I have a feeling this is not going to end good for us, i doubt any of Lowys mates will be sticking by the fans when going against the FFA, just look at ESFC. I can definitely see your point, but IMO, the owners will only ever look out for their own investment i.e. they will support the fans when it is in their interests, and the FFA when it suits them commercially. At the end of the day, it's a business, and they will do whatever they can to maximise the profitability of their investment (for better or worse). Sometimes that is in the fans interest, and other times it isn't. Link to comment
Stokz Posted March 18, 2014 Share Posted March 18, 2014 Don't be naive carns, active support is being actively killed in this country. The owners of a-league are all following FFA directive, no club this season has really backed it's supporters in anything against the FFA. Link to comment
zola Posted March 18, 2014 Share Posted March 18, 2014 FFA is less than transparent in its conduct - wow, much shock. WSW27 and Balkanite 2 Link to comment
Balkanite Posted March 18, 2014 Share Posted March 18, 2014 Don't be naive carns, active support is being actively killed in this country. The owners of a-league are all following FFA directive, no club this season has really backed it's supporters in anything against the FFA. As harsh as this comment is, Lowy wont be around forever. Link to comment
Carns Posted March 18, 2014 Share Posted March 18, 2014 Don't be naive carns, active support is being actively killed in this country. The owners of a-league are all following FFA directive, no club this season has really backed it's supporters in anything against the FFA. Not denying that mate. All I am saying is that the club will always do what is in the best interest of the club (i.e. the board, not necessarily the fans). BUT, if the board feel that it is worth fighting for something (as it is in their interest), they'll do it. Link to comment
westofcentre Posted March 18, 2014 Author Share Posted March 18, 2014 FFA will promote and use active support without necessarily appreciating it or valuing us. If football ever becomes the number one code, active support may come even under more pressure. Link to comment
wswanderersfc Posted March 18, 2014 Share Posted March 18, 2014 http://www.news.com.au/sport/football/ffa-to-share-profits-from-western-sydney-wanderers-10m-sale-with-other-aleague-clubs/story-fnk9a3dc-1226858557813 Link to comment
Jowel Posted March 18, 2014 Share Posted March 18, 2014 Don't be too sure of the Lowy influence guys. It took Lederer over 2 years to be convinced to invest in WSW. Link to comment
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