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Norwich City 2017 Financial Results: Up the Down Escalator
Introduction It’s difficult to dislike Norwich (unless you’re an Ipswich fan). Old fashioned provincial stadium, once beat Bayern Munich, bit of a yo-yo existence, owner gets a bit lively after a few red wines, nothing brash or flash about them. Their financials are broadly the same, live within their means, sensible transfer policy, most matches sold out at home. Norwich were relegated at the end of 2015/16, but were among the bookies favourites to be promoted back to the Premier League the following season. Their board appeared to back the manager Alex Neill in the transfer market, and they spent £19.9 million in the transfer market signing Alex Pritchard (pantomime…
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Valuing Newcastle United Part II
In the last post we looked at the methods professionals use to value a business. We deliberately didn’t calculate using one method, known as the discounted cash flow method, because (a) it relies on clubs generating positive cash flows, which they traditionally have struggled at, and (b) designing the model involves a lot of nerding out on a spreadsheet. Some people have rightly pointed out though that with the latest TV deals, clubs are now far more cash rich than they used to be, and so perhaps such a model is worth attempting. Furthermore, being nerds here at the PriceOfFootball, the temptation to produce something that gives a value was…
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Newcastle: What’s The Colour of Money?
Newcastle: What’s the colour of money? Newcastle United are officially up for sale. http://www.espn.co.uk/football/english-premier-league/23/blog/post/3236029/mike-ashley-puts-newcastle-up-for-sale-but-can-club-be-great-again. That’s not significantly different from the position over the last few months, where they were unofficially up for sale. There are many interested parties, but the most important one is Mike Ashley, as the price that he’s prepared to accept that will determine whether recent noises from the club are to be taken seriously. Stories abound of prices being asked of about £350-400 million. Which begs the question, how do you value a football club? We’ve looked at a variety of methods, to try to determine a range of prices that might be acceptable to both…