We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Rangers...
Dan Plumley has predicted that Rangers could be worth up to £175million with yet more twists in the boardroom and available shares at Ibrox in April.
The finance expert was reacting to Dave King sharing that he had received a £25million offer for his shares, which he rejected out of hand.
Plumley admitted that with Champions League football consistently on offer at Ibrox, his £175million valuation would make sense, making the offer to King a reasonable one.
“You can spin this a number of ways with the valuation,” he exclusively told Ibrox News.
“I’m involved in a lot of modelling from my research and in the industry and what feels about right, I know this polarises opinion in fan bases, for Rangers at the minute is a valuation of around £175million.
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“There are ways to view that and that is based on the revenue going up to nearly £90million, there is a good equity position of around £40million, there is Ibrox and the fan base, you can measure some of this stuff like the history and the Rangers brand.
“The modelling would get you to around £175million. Whether or not you agree with that is up for debate. If that is £175million, the offer is nearly bang on £25million, but if you think that Rangers should be valued at £200million, then his shares are likely worth around £28million so then it would be undervalued and this is the problem.
“These numbers highlight the challenge of this in terms of what is a good offer and what is the true value of a football club, because up to £175million is about right, but that is talking right now with Champions League qualification and the things that come with it, if that doesn’t happen, it has to go down.”
With the future of King up in the air for quite some time now, alongside the news of Douglas Park giving up his significant control, this is really something to watch.
The interest in investment at Rangers may never have been higher, and with offers being rejected, we could see that valuation driven upwards as a result.
It will be interesting to see if John Bennett can drive that upwards in his new role.