IS WEMBLEY BEING SOLD ON THE CHEAP?
£600m isn’t enough, says property expert
THE Football Association could demand more than the £ 600million on offer to buy Wembley, a leading property expert has claimed.
Amid mounting controversy over the future of the home of English football, the offer by Pakistani-American billionaire Shahid Khan ‘ sounds very good value for the buyer’ said the expert.
Valuations specialist Mark Shipman, founding partner of the London-based property advisory firm Michael Elliott, told
Sportsmail why the FA could be charging more for the stadium.
‘The connectivity is excellent, it has road and rail networks,’ said Shipman. ‘ They have about 500,000 square feet of space used during the week within the stadium for education, and they get a rent for that.
‘Naming rights could be £15m to £20m per year. Spurs are paying £15m a year to rent it out for around 20 games a year. So you’ve got £35m a year before food, beverages and any other associated advertising sales.’
Shipman’s firm handled the £26.5m sale of the O2 Arena in 2009, in conjunction with Savills estate agents. Shipman has also been involved in high-profile sales including that of Bow Street magistrates’ court for £125m, a £250m City office development in London and a £30m propngs
property opposite Buckingham Palace. Khan, who owns Fulham and American football’s Jacksonville Jaguars, is understood to have offered up to £600m for Wembley.
‘NFL games can bring g in another £1m a match,’ h,’ added Shipman. ‘Shahid ahid Khan is a shrewd businessman. i He is no fool.’
The FA would retain the revenue from Club Wembley, the ‘worldclass hospitality’ arm of the business, which is valued at up to £350m.
But the Khan offer has caused considerable debate among property specialists, some viewing it as a bargain for the billionaire businessman, while others believe he would be paying a premium price.
Some experts said they thought the £600m was, in fact, a ‘trophy price’ driven by the stadium’s prestigious status.
For instance, one specialist — who asked not to be named — said the chances of Khan making back the money on his investment in stadium income are ‘very slight’, and he would be paying a massive premium for the prestige. ShiShipman responded, saysaying: ‘If it is £600m, I dodon’t think it has got aanything to do with bbeing iconic. I think it is to do with it being a 92,000 all-seat stadium dstadium and what you ccan rentalise it for, wwith sponsorship and namnaming rights. It doesn’t sounsound a lot of money.’ Asked if he thought the £600m is less than Wembley is worth, he said: ‘ Yes, possibly. If Spurs had been given the opportunity, would they have bought it for £600m rather than spending £800m (on the new White Hart Lane)?’
The FA are being advised by Rothschild & Co on Khan’s bid, which is still being considered and could yet be rivalled.
Although Khan, 67, has given a number of interviews in the past week about his plans for Wembley, and has appeared confident he will secure the deal, it is understood other offers would still be considered.
Another source close to the situation told Sportsmail that it is not a done deal and suggested that ‘there will be other people coming along and knocking on the door’ with rival offers. They added that if other bids are made, it is highly likely a formal sale process would begin.
‘It is understood Rothschild would at some stage be considering all offers,’ the source claimed.
Considerable debate has surrounded the reported valuation of Wembley at around £150m less than the £757m it cost to build the venue, which opened in 2007 on the site of the original stadium. Many have insisted the value should have gone up over the past decade.