In with the New: The Great Ownership Search

Discussion in 'Real Salt Lake' started by SenordrummeR2, Aug 30, 2020.

  1. SenordrummeR2

    SenordrummeR2 Member+

    Jul 21, 2008
    Layton, UT
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Numbers I've heard thrown around for the sale of RSL have been in the $325 - $350 mil range. According to this Sportico article, Houston sold for $400 mil, and Orlando is rumored to be in the same range. The sale reportedly includes the team, the Dash, and the business relationship the team has with BBVA Stadium (stadium is owned by the local stadium authority). Granted, Houston is a much larger area, but I'd think RSL has gotta be in the $400+ range is the sale includes RSL, the Monarchs, Rio Tinto Stadium, the ZBRA, and whatever other assets are part of the Utah Soccer Holdings sale.
     
  2. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Sounds like you have a closet similar to mine. here are the 5 or so shirts I wear that aren't soccer and then here are 30 milan/rsl/usa/royals/[insert randome team] kits
     
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  3. Lizzie Bee

    Lizzie Bee Member+

    Jul 27, 2004
    Utah
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    I'm pretty sure you've been wearing soccer gear 100% of the times that I have seen you IRL. So that checks out
     
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  4. kirsoccer

    kirsoccer BigSoccer Supporter

    Jun 29, 2007
    Well, I guess it's decided then. Which one of us is going to break the news to him? ;)
     
  5. kirsoccer

    kirsoccer BigSoccer Supporter

    Jun 29, 2007
    #480 kirsoccer, May 20, 2021
    Last edited: May 20, 2021
    I hadn't heard any numbers recently, but initially the number was thought to be in the $400 - $500 mil range, but that was when the Royals were still in the mix. Not sure if that is a significant discount or not, since everyone feels they'll be back in a couple of years. I think somewhere along the way Dunny mentioned that the Charlotte expansion fee was $325M and that he'd expect a significant premium on top of that based on the infrastructure and built-in fan base in SL. Just pure guess from me - I'd think $500M is highly unrealistic, but I'd expect the number to be somewhere around $400M or slightly higher.
     
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  6. RSLer

    RSLer Member+

    Sep 24, 2008
    Stansbury Park, UT
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    #481 RSLer, May 20, 2021
    Last edited: May 20, 2021
     
  7. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    even my not soccer clothes somehow are soccer clothes. At some point, you just have to accept who you are
     
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  8. RSLer

    RSLer Member+

    Sep 24, 2008
    Stansbury Park, UT
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    From Sportico: not sure what assets are included in this valuation.

    upload_2021-7-15_22-55-7.png
     
  9. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    location location location
     
  10. Ismitje

    Ismitje Super Moderator

    Dec 30, 2000
    The Palouse
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    JJ Watt responded to a recent Tweet asking him to purchase RSL that the price should come down. Didn't inspire me, even if the sentiment is correct (since we don't know what is being asked).
     
  11. goobx1

    goobx1 Member+

    Jul 9, 2007
    Salt Lake
    If memory serves and reading about that conversation MLS is sticking to a 400 million dollar ask and JJ was asking for 250. Which is ludicrously low.
     
  12. Med_Phys

    Med_Phys Member+

    RSL
    United States
    Jun 20, 2019
    Terre Haute, IN
    Nat'l Team:
    United States
    Don't know what I'm missing, but I don't see why RSL wouldn't be worth $400m, especially compared with the teams similarly valued. Not sure MLS will sell it at much less than that when Charlotte just paid $325-350m just for the right to join MLS. The academy, stadium and other infrastructure has to be worth something.
    I'm wondering if the DLH business entanglement is just too much to deal with for anything approaching $350-400m.
     
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  13. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    #488 15 to 32, Jul 19, 2021
    Last edited: Jul 19, 2021
    Supply and Demand would suggest that, while a comparable might justify an initial pricing of 400m, the demand just isn't there at that price point.

    Think of it like housing prices in Utah right now. While a house in Salt Lake county might look the exact same as one in say Piute county, heck the Piute county one could be better, most (if not all) buyers want to be in SL
     
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  14. kirsoccer

    kirsoccer BigSoccer Supporter

    Jun 29, 2007
    #489 kirsoccer, Jul 19, 2021
    Last edited: Jul 19, 2021
    I don't have access to the original article as its behind a paywall, however, what I'm reading about it is that it's only a "brand valuation" and does not take into account specifics of hard assets if a club was up for sale. Since RSL is heavy in this arena, you'd think it's "actual valuation" would be higher than whatever methodology was used for the purpose of this valuation. And let's be clear, this type of thing is primarily click bait to drive audiences to their paid publication.

    It's interesting but I take very little stock in how this translates to what RSL is really worth on the open market. That will prove itself out (hopefully in the short run). No way MLS let's this sit through another offseason, but hopefully a deal is done sooner. With an MLS TV contract looming and the US a few short years from co-hosting a World Cup, hard to believe a prospective owner will not want to close a deal here pretty soon.

    Even Sportico is clear that this shouldn't be taken as what an investor should pay for a club. Here is a quote from Sportico about these valuations:

    "But there is little doubt any owner who wants to exit at their Sportico’s valuation would “get it, and it wouldn’t take a long time,” said one MLS club executive."
     
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  15. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Despite the increase in billionaires over the pandemic, I feel like the potential population of buyers is ever shrinking for RSL. A group of investors has sounded like the most likely route for awhile, but I'm not sure who exactly that entails.

    RSL has the hard assets, which is a good reason to keep the club here. And it gives that "turnkey" feel to the club, for sure. However, lets not pretend these potential owners necessarily want that. If they're willing to dump that much money into buying a team, they're not going to want a mediocre stadium for the league. They're not going to want stuff that DLH's name is SUPER associated with. This level of wealth rarely comes without arrogance and pride.

    One angle on that is that we could be in store for a sweet stadium update and the training facility expanded to actually have 15+ fields around it like LAG or cRapids do, to make it a soccer destination. Another is that a buyer looks at everything they're paying for and wonders why they don't just pay the extra fee to start from scratch. Like buying a nice 5 year old BMW with everything in it, but really wanting a brand new ferrari.
     
  16. RSLer

    RSLer Member+

    Sep 24, 2008
    Stansbury Park, UT
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    The organization is trying to land a couple 2026 World Cup teams to make this their base. Maybe additional fields will come with that.
     
  17. rslfanboy

    rslfanboy Member+

    Jul 24, 2007
    Section 26
    You mean games, right? Also, 2026 hasn’t been awarded yet?
     
  18. Ismitje

    Ismitje Super Moderator

    Dec 30, 2000
    The Palouse
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    2026 is the joint tournament with the US, Mexico, and Canada. 48 teams, up from 36, so there will be a big need for training bases across the country.
     
  19. rslfanboy

    rslfanboy Member+

    Jul 24, 2007
    Section 26
    I guess Soccer is trying really hard to kill itself.
     
  20. RSLer

    RSLer Member+

    Sep 24, 2008
    Stansbury Park, UT
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Teams. It’s already been determined that SLC will not host any games.
     
  21. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Correct, but all of the "in the know" folks around RSL talk about the academy hosting one if not two nations as a training ground running up to/and possibly through the tournament. That would be cool
     
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  22. RSLer

    RSLer Member+

    Sep 24, 2008
    Stansbury Park, UT
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    That’s what I originally posted. We’ve come full circle.
     
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  23. rslfanboy

    rslfanboy Member+

    Jul 24, 2007
    Section 26
    You mean games, right?
     
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  24. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    right
    but I was just correcting this guy who was saying that... oh, wait
     
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  25. 15 to 32

    15 to 32 Straw Hog

    Jul 1, 2008
    Salt Lake
    Club:
    Real Salt Lake
    Nat'l Team:
    United States
    Is the Delta Variant to blame for this area just not having any real news? Should we start being concerned? Think of how cool the costco could be using the academy building (half kidding)

    Whats the reasoning for an ownership not taking over now? Is it still asking price from MLS? When does that change? Does it change? Is it better for the league to close this club and open another? Is it worthwhile to lower the price to a point where people actually pony up?

    Could I ask more questions that the answer is a shrug emoji? Does anyone deserve to keep their job right now at the club? I get the human factor and really want all these folks to not be saved just to be dumped, but the current environment just doesn't excite me. How much does the first team dictate this? How much should they?
     

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