West Brom must be in Premier League to realise Guochuan Lai valuation for takeover – Finance Expert
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive West Brom columnist. Each week he’ll be giving his views on the biggest talking points at The Hawthorns...
Dan Plumley has insisted that West Brom must be in the Premier League to realise a valuation of £175million, with no chance of a similar offer in the Championship.
The Finance Expert admitted that being in the Championship can crash the value of a club alone with the drop in numbers mainly down to differences in broadcasting revenues.
It comes after The Telegraph reported that a blue-chip investor in the United States had inquired over a £50million takeover this season, before being told not to bother.
“What you can see there and this is important for the ownership group in terms of as and when they decide enough is enough, is if they are hanging around for promotion back, that difference in valuation is quite easy to go from being a £175million club at valuation to a £50million club overnight,” he exclusively told West Brom News.
“That is the difference between the Championship and the Premier League at the minute and that’s what we are seeing in the numbers, which are linked to the broadcasting contracts primarily and that is the risk of falling out of that league from an ownership point of view because the valuation of the club is much lower in the Championship.
“So, if he is holding out for north of £100million and up towards £175million then West Brom absolutely have to be a Premier League club to realise that as he’s not going to get that valuation.”
With the state of the finances at the club, it looks as though no one is going to get anywhere near what Guochuan Lai wants to bring in for any takeover.
It is daunting to read up on the club right now and it should come with a warning and if a takeover is not completed soon, the fans are only going to get more agitated.
In other West Brom news, Andy Carroll has opened up on his immediate regret after joining the Baggies last season