Either the FFA got things badly wrong with the sale of Western Sydney Wanderers, or the businessmen selling just over one third of the equity in Melbourne Victory are overly optimistic about the value of their 35 per cent stake, which goes on the market on Friday.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Harry Stamoulis and Robert Belteky are the largest of a group of investors who are selling a combined 4.5 million shares in the club, but what has raised eyebrows is the fact that they have fixed the price at between $2 and $2.50 per share, depending on the size of the parcel bought.
At a conservative estimate that values their combined stake at $9 million, at a generous one, $11.25 million.
To extrapolate, that puts a value of the club anywhere between $25 million and $32 million.
It may well be worth that, and the market will show, over the next few weeks, if it is. But those selling out are certainly looking for a massive premium for their stake compared to the sale price of other A-League clubs.
The FFA owned Western Sydney - which earlier this week qualified for the final of the Asian Champions League - went for around $11 million earlier this year, and the game's governing body took more than a year to find interested investors even at that price.
Melbourne Heart went for a similar amount towards the end of last season, with English Premier League champions Manchester City swooping to buy up the struggling club and deliver its original investors a small profit, something they could scarcely have hoped of achieving before hand.
The Victory shares are now open to expressions of interest and will be until the end of October.
The vendors are happy to sell to one large investor or several smaller ones, with a minimum of only $500 being required for a fan to lodge a bid for a small tranche of shares. Small shareholders will pay the higher price of $2.50 , with large buyers receiving a discount on the purchase price commesuarate with the size of their investment.
Belteky said yesterday that business commitments had forced him to consider his position within the club and that he was happy to offload his shares in small parcels so as to broaden the ownership base.
Asked if the price was too high compared with other sales earlier this season, Belteky said that the fundamentals of the competition and the Victory business made the $2.50 price viable.
"Our profit this year was $1 million on about $16 million revenues. The franchises in the competition now have a 20 year period, the TV rights money covers the salary cap and the game is continuing to grow in popularity. We believe Victory has plenty of upside and growth potential. It would be good to see fans get the chance to buy into the club."
