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PREMIER LEAGUE CLUBS MAY HAVE LOST 20% IN VALUE, SAYS LEADING FOOTBALL FINANCIER

Clarke Willmott partner chairs discussion on future of club ownership at Soccerex London forum

England‘s leading football clubs have fallen in value by up to 20 per cent since the onset of the financial crisis, a conference chaired by one of the country‘s leading sports lawyers, Trevor Watkins of Clarke Willmott, was told.

Keith Harris, the banker who brokered Roman Abramovich‘s takeover of Chelsea, told delegates at the Soccerex London Forum that new football investors are unlikely to be able to finance deals by using debt, as has happened in the past.

Mr Harris, executive chairman of investment bank Seymour Pierce, was speaking at a debate at Wembley Stadium on “the future of football club ownership”.

The panel was led by Mr Watkins, partner in the sport team at Clarke Willmott,
which has offices in Birmingham, Bristol, London, Southampton and Taunton. The firm acts for more than 15 professional clubs and many other sporting organisations.

Alan Keen, chair of the All-Party Parliamentary Football Group, and Dave Bassett, former manager of nine professional teams including Wimbledon FC, also spoke on the panel.

“You can‘t expect the asset values of soccer clubs not to have been affected,” said Mr Harris.

”There has probably been a correction of the order of 20 per cent. Anybody from overseas, the United States, Asia or Europe contemplating the acquisition of an English football club is now looking at making a payment which is probably a third less.”

Mr Harris said he had seen signs of a recovery in the football economy in recent weeks – but added that the days of the leveraged deals which allowed US investors to buy Manchester United and Liverpool, are probably over.

“It is not just football that applies to, but just about everything,” he said.

“Banks are either incapable or unwilling to lend money on a highly leveraged basis. Instead, we are now looking at institutions, corporations or individuals who have disposable cash. There is huge interest in both the Premier League and the Championship. The world is feeling better, which means a more encouraging environment for investing.”

When pressed by Mr Watkins, Keith Harris made clear that in securing investment for a club he had a moral responsibility to secure the “right” owner.

“It was a hard hitting and controversial session,” commented Trevor Watkins.

“The game‘s underlying debt problems are not going to be resolved without tough leadership and radical reassessment of how they are approached.

“Whilst we are also seeing ‘green shoots‘ within the game I believe a more flexible and pragmatic approach is needed. With multiple clubs seeking new investment I question whether all of them will survive.”

Photo Caption: Trevor Watkins

ENDS  14th May 2009

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