The sale of a portion of Vanessa Gold’s family shareholding is likely to value West Ham United at over £650 million, reflecting investors’ appetite for English Premier League clubs.
Auctioning a 10% Stake
West Ham United, a Premier League football club, has once again placed a 10% stake up for auction, putting international investors’ desire for a piece of one of England’s top-flight clubs to the test.
Vanessa Gold’s Collaboration with Rothschild Financiers
Vanessa Gold, joint-chair of West Ham and the daughter of the late businessman David Gold, is reportedly collaborating with Rothschild financiers to sell a portion of the 25% stake held by her family trust.
Potential Investor Interest
On Tuesday, a potential investor who was informed of the transaction stated that Ms. Gold was anticipated to authorize the transfer of as much as 10 percent of the Europa Conference League champions from the previous year.
Also in recent days, reports indicate that a number of institutions have contacted regarding a potential transaction.
According to sources with knowledge of the football industry, any transaction would likely value the Hammers higher than the approximately £650 million that the sale of a 27% stake to Czech oligarch Daniel Kretinsky in 2021 estimated the club was worth. This would be indicative of West Ham’s consistent success in selling out the London Stadium, which has a capacity of 62,500, as well as their inaugural triumph in European club competition last season.
After this weekend’s 1-0 home loss to Everton, David Moyes’ Hammers are ninth in the Premier League.
A syndicate of wealthy shareholders owns West Ham, like many other Premier League organizations.
The investor Tripp Smith possesses 8% of the company, while David Sullivan owns just under 39% and Mr. Kretinsky retains the stake he acquired two years ago.
One source says minority stake sports investment funds want to buy a 10% share in the club.
“I would contemplate selling a portion of our shares to the ideal partner,” stated Ms. Gold.
“All three of the other major West Ham United shareholders—David Sullivan, Daniel Kretinsky, and Tripp Smith—have been extremely receptive to my communications with them.”
In a transaction to buy a portion of our shares, my first concern will be my father’s legacy, which puts West Ham United first.
“I’ve hired Rothschild & Co. to advise us on any conversations and keep shareholders, the club, and our fans informed.”
Ongoing Interest in Football Club Stakes
The procedure to divest the stake coincides with ongoing interest in acquiring a stake in the wealthiest domestic football league in the world.
Also a deal close at hand between the Glazer family and Sir Jim Ratcliffe, the Ineos billionaire, to transfer a 25% stake in Manchester United.
Liverpool disclosed in September that Dynasty Equity, a private equity firm based in the United States, had acquired a minority ownership interest in the club.
In addition, the ownership of clubs such as Tottenham Hotspur is continuously scrutinized, and Everton has recently disclosed its intention to sell to 777 Partners; however, regulatory sanction has not yet been granted for this transaction.
The most recent spate of takeovers and minority transactions occurs as the Premier League prepares to sell its next cycle of domestic broadcast rights.
A new financial redistribution agreement that would require Premier League clubs to transfer hundreds of millions of pounds to their lower-league counterparts over a six-year period is still under discussion.
Next week’s King’s Speech anticipates the government including legislation to establish an independent football regulator.