West Ham: Maguire - Sullivan's £600m valuation is right on the money

By Kevin Phillips

21st Feb, 2021 | 7:00pm

Finance expert: Sullivan is spot-on amid intriguing West Ham takeover update

David Sullivan’s mega-money valuation of West Ham is bang-on — the club’s location and stadium capacity make it a supremely attractive investment.

That is according to finance guru and new Football Insider columnist Kieran Maguire, speaking exclusively after this site revealed David Sullivan held talks with a number of potential buyers but is holding out for his £600million valuation of the club.

Billionaire investor and former Bordeaux owner Joseph DaGrosa is on the hunt for a Premier League investment, with West Ham one of several clubs linked.

But his negotiations to purchase a controlling stake in Southampton stalled over the current owner Gao Jisheng’s £200m asking price.

Sullivan wants three times that for West Ham.

Maguire claims that the hefty valuation is by no means outlandish, citing the “London factor” as a key reason.

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He told Football Insider correspondent Adam Williams: “£600m I don’t think is unreasonable, except for the fact that they don’t own the stadium.

“What they do have in respect of the stadium is a very long rental agreement at a ridiculously cheap rate. It’s effectively being subsidised by the taxpayer.

“The potential is massive with a 60,000 capacity stadium and the London factor. London is very attractive to football tourists. If you got to Tottenham’s new ground at the weekend, the number of Asian fans as a result of the Son factor is phenomenal. Every single one of them goes into the Spurs megastore and buys the shirt with ‘Son’ on the back.

“I think with West Ham, it’s certainly towards the top-end of the estimate, but it’s feasible. If Burnley is worth £200m with a 20,000 capacity stadium then there’s no reason why West Ham shouldn’t get a significantly higher amount of money.”

There have often been questions surrounding GSB’s ambition in their 11-year Hammers reign but they are flying high in the league this season under David Moyes.

Whether their current 4th-place league standing is a vindication of the hierarchy’s methods is open to interpretation but the Hammers will be in line for a minimum £40m payout if they can pull off a sensation top-four finish.

In other news, West Ham are competing with Arsenal in a bid to sign a Championship wonderkid.