This could really destroy us if we get a stingy owner that isn't willing to invest in the club... Even with the salary cap the overage of wages from our 3 DPs is more than most owners would spend.
Does anyone know how much the Galaxy are worth? I guess that includes the HDC. Just in case AEG gets divided up
This is LA we are talking about , not Salt lake or New England, im sure the new AEG will be required to keep the big name signing tradition or GTHO
There is sort of a loose formula that considers, EBITDA, Revenue, Stadium/Stadium Debt, Media contracts, and value of assets (i.e. players). It varies, we would know a lot more if the Galaxy were publicly traded like some European clubs because we'd be priced into the market. At last check our revenue is around $35m (about a year old now). Transfermarkt estimates our squad value at €17.6m ($22.8) Our TV deal is worth $55m over 10 years, $5.5m per year. Estimated EBITDA around $22m, that's a real guess. MLS revenue is shared and I don't know what Arena and other staff salary is right now. Stadium cost $150m, not sure about the debt. Now what's difficult is you can't really use comparative European sales as a benchmark because the Galaxy is a franchise. Though if we could as far as "size", I mean financially two clubs are comparable Leeds and Getafe. Leeds is for sale right now and Getafe was recently sold. Bates wants £80m ($129m) for Leeds which everyone thinks is ridiculous, they're worth closer to £60m ($97m). Getafe sold recently for around €80m($103m). So considering other factors like we're a franchise and our revenue is shared maybe $70m-$100m? Who knows....
I don't think things work that way. Of course our fans want to see a quality team. It can be done with big names. It can also be done other ways. If the new owners field a quality side, no one will care if the names are big. I like to think Holywood is a place where stars are born or made, not necessary to buy them. But I think we are well past the days when MLS dictated personel decisions to individual clubs. It doesn't happen anymore. New owners will sink or swim on their own.
I was under the impression that our TV deal with Time Warner Cable required an investment by the team owners into having marquee DP's at all time during the duration of the deal.
I don't know of any reliable source that has claimed to have seen that contract. You could be right. Or this could be an urban legend. Who knows?
Let's hope he likes the Galaxy like he seems to like all other LA sports franchise. One thing is for sure. He's just as stupid rich as Uncle Phil.
As the late US Senator Everett Dirksen would say, "A billion here, a billion there, pretty soon it begins to add up to real money."
Seems like what I thought before is looking like what's happening right now. I think if the Guggenheim group does end up with AEG, money is definitely not a problem...just whether or not they're willing to spend on the Galaxy as opposed to the Kings (haha) or bringing an NFL team to LA (more likely).
I just hope it's relatively "clean" money, and the new owner doesn't own some blood diamond mine in Africa.
True, the fact that Soon-Shiong may be in the running to purchase AEG doesn't mean that the Galaxy and related assets couldn't be disposed of, separately, to a Beckham consortium. Beckham ownership of the Galaxy would make a certain amount of sense, given the timing of this transaction and where he is in his career. I'd love to see how that would play out. Beckham would have a continuing interest in maintaining and enhancing his personal brand. That brand is more popular the more he is on the field and in the public eye. If he became the owner/operator of the Galaxy, is he going to allow his hand-selected manager to NOT play him?
Being bought buy Guggenheim Partners and Soon-Shiong sounds nice if the invest in the team as they have been with the Dodgers. I just worry being sold to people you don't know if they are football fans. I'd rather we were bought by someone like Beckham or Lalas and they seek out financial backing. At least we wouldn't have to question whether they love the game.
Good point. Back in May, when we were really feeling the pain of our slump, Magic Johnson tweeted this: I wonder if he has any idea that the Galaxy exist. I have no doubt that he doesn't care. I tweeted back to him Predictably, no response from him...
MLS, like ALL other major sport leagues, doesn't allow current players to own any stake of a MLS franchise. Beckham would have to retire as player and move onto the next phase of life.
Not sure I like the idea of a Becks/Lalas ownership group. Look what Lalas did to the team as a general manager. And according to Grant Wahl, Becks' entourage had a lot to do with that as well. I would be afraid that they would fiddle with the minutia, and mistake decisiveness for progress (which is what I see Lalas as doing as GM).
Hopefully Beckham will have learned lessons from those first few years and not repeat the same mistakes. The team was horrible and no one was happy, arguably in large part because of 19 Ent.
Actually if it were to happen I would think Beck's would in fact take advice from and follow the lead of 19 Ent. He has pretty much put his career in their hands and they have by and large done very well for him. But I don't think they know much about running a soccer club and there's no reason to think Beck's does either. I can't see it as a good thing. And it can never happen unless the new owners of AEG whoever they are want to break of the asserts and sell them piecemeal. Beck's himself is not able to come up with money in the billions, and I doubt that 19Ent is either. Unless Becks becomes the token figurehead spokesman for a real money group a la Magic J, he isn't in the picture to buy AEG
I'm pretty sure I saw one writer tweet last week that Beckham's "buy a team" deal excludes any team in NY or LA. Of course I can't actually find it now.
Beckham wouldn't be able to afford the Galaxy and run it the way it needs to be run. But he could definitely be part of a group buying and I would love for him to stay involved.
Same here. I'd actually think he'd want to be part of a group rather than buy a franchise by himself. Managing a team as the sole owner will probably take up too much of his time and energy for his liking.