October 3 – Three years after buying into Crystal Palace, US owners Joshua Harris and David Blitzer, look to have put their stake up for sale in a deal that would value the south London club at £210 million.
A report in financial newspaper City AM says that a document drawn up by Zenith Global Capital Partners is offering the purchase of at least 75% and up to 90% of the club.
The club would be sold-debt free and is projected to have a future valuation of £525 million three years after the sale and £700 million two years after that.
Crystal Palace chairman Steve Parish is said to be willing to dilute his 18% stake.
In their last reported accounts in April, Crystal Palace showed a substantial 2017-18 loss, the cost of the previous season’s successful survival push under former England boss Roy Hodgson, of £35.5 million. This was against a profit of £11.8 million the year before.
The near £50 million difference was largely the consequence of player transfer activities. Whereas 2016-17 had produced a near £35 million profit on player sales, the 2017/18 season generated just £2.4 million. At the same time, the arrival of players such as former Liverpool man Mamadou Sakho pushed up amortisation costs.
All told, the 2016-18 period saw Palace disburse around £117 million on players, with well under £50 million recouped from player sales.
Turnover in 2017-18 exceeded £150 million, with the vast majority, £121.2 million, derived from broadcasting rights.
Gate receipts crept up to just under £10.9 million. With the club said to be operating at 98.5% occupancy, the accounts served notice that ticket-pricing would be “further reviewed for the 2019-20 season” and that it wanted to being construction on a new 8,300-seat stand. The cost of the ground redevelopment is pegged at £100 million.
In May Crystal Palace said that they are not in negotiation on a £150 million takeover deal involving former Manchester City owner Thaksin Shinawatra. But Parish did indicated that the club would be interested in new investment.
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