Poor economy leads to plunging values for English football clubs

The price tags on several English football clubs have plummeted in response to the economy, as reported by The Times.

This could present serious opportunities for any investor willing to take on a challenge, as increased debt loads and wage bills have become a burden to so many clubs.

The Times notes that Portsmouth and Southampton could have been sold for significantly less than the GBP 22 million Manchester City shelled out for Joleon Lescott. 

Heavy debts at Portsmouth have forced owner Alexandre Gaydamak to pursue a takeover that will include his bank loans, with a deal believed to be approaching the final stages with Sulaiman Al Fahim.

Similarly, Southampton was sold for less than GBP 13 million last month by Markus Liebherr, as other clubs’ prices continued to fall as well. 

Desperate to secure collateral for a loan extension, Liverpool co-owner Tom Hicks was ready to unload one-third of his stake for GBP 100 million – half the amount of the estimated value of the share just one year prior.

Newcastle United’s Mike Ashley has also backed off considerably, dropping his asking price by GBP 150 million. Sources are now suggesting that the owner may be willing to hand the club over for a mere GBP 90 million.
 
The value of West Ham presented one of the most shocking changes in response to the market, as the price of the club eventually sank to an unsettling GBP 50 million.