Exclusive Ipswich Town owners exploring £350m takeover valuation.

EFL Analysis understands that investors in Ipswich Town’s ownership firm Gamechanger 20 Limited are looking at takeover or partial takeover opportunities.

Ipswich were relegated from the Premier League last season, their first since 2001-02. Kieran McKenna remains in command after being promoted twice in 2022-23 and 2023-24 seasons.

It is unclear at this time whether the owners, whose consortium consists of 14 individual shareholders, including a 1.4% stake held by musician Ed Sheeran, are pursuing a full takeover, a minority investment, or merely stress testing their price.

The two largest investors in Gamechanger 20 Limited are Bright Path, a US private equity firm, and ORG, an Arizona-based pension fund.

ORG originally controlled 90% of the club, but reduced its interest to about 50% via a £105 million equity sale to Bright Path in March last year.

Three Lions Ipswich LP, led by American investors Brett Johnson, Berke Bakay, and Mark Detmer, also acquired a five percent share. Individually, the trio has tiny stakes.

Ipswich Town owners valuing the club at £350-375m

The nature of a takeover or minority investment in Ipswich is unclear, but the owners are said to be seeking proposals at a price of £350-375 million.

Another potential sale condition is that if the team is not promoted before 2027-28, the price might drop by £50 million, which Gamechanger will refund to the buyer as a rebate.

The exact valuation of a football club is hotly debated in football finance, however a multiple of revenue is frequently used as a starting point before considering net assets, discounted cash flow, EBITDA, brand IP, and a variety of other variables.

When Ipswich was last in the second tier in 2023-24, a £350-375 million valuation represented nearly a tenfold increase in revenue.

However, the Portman Road club is anticipated to receive parachute payments totalling almost £90 million over the next two seasons. Ipswich’s income in 2023-24, the final fiscal year on record, was £37.3 million. That was one of the highest among Championship clubs that did not receive parachute payments.

Their robust advertising (£16.5 million) and matchday income (£10.5 million) suggest they will produce £90-100 million in revenue next season, with parachute payments and central EFL media income also factored in.

Those involved in the transaction say they are valuing the club at a 3.3x multiple of revenue, which includes player sale gains.

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£350-375 million would be a Championship club’s takeover record, and by a significant margin. In English football, only Chelsea, Arsenal, Everton, West Ham, and Wolves have sold interests at a higher price.

Club values, according to both analysts and investors, have nearly always trended upward and to the right, handily surpassing indices such as the S&P 500. If Gamechanger sells a portion of their investment in Ipswich for £350 million, it will represent a significant markup.

Wrexham, who, like Ipswich, will be one of the highest-revenue non-parachute payment clubs next season, are valued at approximately £350 million. Sheffield United, however, was recently sold for approximately £110 million.

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