I thought the Keogh family would take over? It's not really looking like that at this stage, can't believe where the club has end up from the NSL power house days.
Embattled A-League club Perth Glory is expected to be purchased by Melbourne property developer Robert Brij, in a multimillion-dollar deal that will attempt to make the West Australian team financially viable.
Perth Glory fell into receivership and its licence was revoked in July after former owner, West Australian businessman Tony Sage, was unable to find new investors. A search for a new buyer has run for the past three months.
Football sources close to the deal, who spoke anonymously because it had not been announced, said property investment and development group Primeland, which is run by Mr Brij, will take over the club and its licence.
The acquisition will come four months after Mr Brij’s Primeland acquired one of Melbourne’s best-known boutique hotels, the Brighton Savoy, with plans to redevelop the prime Bayside site into a $120 million mix of luxury apartments and townhouses.
Primeland, which began in 2017, runs a range of projects including a 123-hectare former GM Holden car assembly factory in Adelaide acquired by developer Ross Pelligra in 2017, a boutique hotel development in East Melbourne and a 160-room Holiday Inn in Richmond.
The terms of the deal are unclear, but it typically costs between $50 million and $60 million to fund a club over a five-year period.
Let me tell you what the problem is. Those that run the game think each licence is worth 20-30m. So in trying to find a buyer they want this headline sale number to underpin the value of the other franchises. However, a business losing money is worth farkkk all hence the issue with finding a buyer. They need to part with 20m down the tube before a ball is kicked. People with the coin are not idiots.
Let me tell you what the problem is. Those that run the game think each licence is worth 20-30m. So in trying to find a buyer they want this headline sale number to underpin the value of the other franchises. However, a business losing money is worth farkkk all hence the issue with finding a buyer. They need to part with 20m down the tube before a ball is kicked. People with the coin are not idiots.
There's a good article on The Roar about the value of licence fees. According to them, the figures released publicly were said to create an 'optical illusion' to make Football Australia's books look better than what they were at the time.
Western United paid $18 million upfront for their licence but FA were to give them back $14.5 million in installments so the licence actually cost $3.5 million.
Macathur Bulls paid $12 million for their licence but were to get back $9.75 million so their licence cost $2.25 million.
Yeah ok that makes sense. But its all a bit cloak and dagger. There are rumours that multiple well qualified buyers will take the glory on with nothing payable up front but amounts payable when milestones are met. To be fair, for a club that is bleeding money its commercial to structure such this way. Obviously this didnt come to pass.
Must be incredibly hard to run a club with such limited revenue streams, at home games the drink/food/ticketing is run by third parties so little to no revenue there, no one wanted the TV rights so little to no revenue there.
Only hope is getting the player development space right so clubs can start selling a few players for a handy sum to fund the thing.
Plus side next two games are on FTA TV, going to make a point of watching them-would love to watch more but not getting paramount purely to watch a few games of A league if I happen to have the free time.
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G-Mac likes this post.
Perth Glory fell into receivership and its licence was revoked in July after former owner, West Australian businessman Tony Sage, was unable to find new investors. A search for a new buyer has run for the past three months.
Football sources close to the deal, who spoke anonymously because it had not been announced, said property investment and development group Primeland, which is run by Mr Brij, will take over the club and its licence.
The acquisition will come four months after Mr Brij’s Primeland acquired one of Melbourne’s best-known boutique hotels, the Brighton Savoy, with plans to redevelop the prime Bayside site into a $120 million mix of luxury apartments and townhouses.
Primeland, which began in 2017, runs a range of projects including a 123-hectare former GM Holden car assembly factory in Adelaide acquired by developer Ross Pelligra in 2017, a boutique hotel development in East Melbourne and a 160-room Holiday Inn in Richmond.
The terms of the deal are unclear, but it typically costs between $50 million and $60 million to fund a club over a five-year period.
The A-Leagues declined to comment.
Gilgamesh likes this post.
Let me tell you what the problem is. Those that run the game think each licence is worth 20-30m. So in trying to find a buyer they want this headline sale number to underpin the value of the other franchises. However, a business losing money is worth farkkk all hence the issue with finding a buyer. They need to part with 20m down the tube before a ball is kicked. People with the coin are not idiots.
G-Mac likes this post.
G-Mac likes this post.
G-Mac likes this post.
Only hope is getting the player development space right so clubs can start selling a few players for a handy sum to fund the thing.
Plus side next two games are on FTA TV, going to make a point of watching them-would love to watch more but not getting paramount purely to watch a few games of A league if I happen to have the free time.
G-Mac likes this post.