Kieran Maguire suggests the true price of Southampton takeover is £120m higher than reported
The true value of Dragan Solak’s takeover of Southampton is likely closer to £220million as opposed to the £100m being reported.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the dramatic recent developments at St. Mary’s.
The Saints confirmed on Tuesday (4 January) that Solak’s investment vehicle Sports Republic had bought an 80 per cent stake in the club.
The agreement brings to an end the premiership Gao Jisheng, who first bought into Southampton in August 2017.
Sky Sports reported on Wednesday (5 December) that Solak, who made his millions in the cable television industry, paid Jisheng £100m for the deal.
But Maguire explains why the mechanics of the purchase, as well as the Saints’ debt, mean that it is effectively worth double the reported fee.
“I suspect that they paid slightly more than £100m for the 80 per cent share,” he told Football Insider‘s Adam Williams.
“By the time you gross that up, it probably values the equity at around £130m or £140m.
“You add on £80m worth of debt and you probably have a price of about £220m. I think it’s a fair price.
“Clearly, they are a less attractive business proposition than Newcastle, and that is reflected in the difference.
“The rumour about Crystal Palace was that they were priced at about £220m, and I’d say that they are the same type of club.
“They might have extracted some more on the interest rates on the loans, but we’re talking relatively low figures.”
Katharina Liebherr – who inherited the club from her father, Markus Liebherr, before selling 80 per cent to Jisheng – retains her 20 per cent stake.
Sports Republic have declared their ambition to take over multiple clubs worldwide.
In other news, Portsmouth, Sheffield Wednesday and Hull City in race for former Southampton star Josh Sims.