Wanted, new money. Crystal Palace sales memo issued valuing club at £210m

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.

Contact the writer of this story at moc.l1571782315labto1571782315ofdlr1571782315owedi1571782315sni@n1571782315osloh1571782315cin.l1571782315uap1571782315