Stan Kroenke’s £550m purchase of a minority stake in NEX listed Arsenal Holdings PLC from Russian billionaire Alisher Usmanov results in an implied Enterprise Value for Arsenal of £1.8bn, or approx. 12 times last year’s adjusted EBITDA of £151m (that’s our calculation of adjusted EBITDA).
To put that into financial perspective, US listed Manchester United has a current market capitalisation of US$3.5bn, and an Enterprise Value (‘EV’) of approx. US$3.8bn – the EV includes the debt. For the 12 months ending 30 June 2017, ‘United’ generated adjusted EBITDA of US$200m, resulting in an EV/EBITDA ratio of approx. 19x – an even richer multiple than Arsenal!
Those interested in a cheaper alternative, and a football team in the ascendancy, could look no further than Tottenham Hotspur.
Tottenham’s excellent manager, Mauricio Pochettino, steered the club to a 3rd place finish in the Premier League last season and 2nd place the season before. The club has also recently enjoyed strong cup runs (a…
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