How Much Is An NPFL Club Worth? The Big Question Raised in the Call for Possible Private Takeover

 

Looking at the Sports Minister Samuel Dare's transformation agenda to turn sports into business in Nigeria.., and starting with football's elite League the Nigeria Professional Football League (NPFL). It is obvious government cannot run a football club as a profitable business, there would be some sort of private takeover to achieve this or what do you think? 

Of course, if there's a possible private investors who want to buy-over any of the clubs, there must be some sort of evaluation of what a typical NPFL club is worth. 

Looking at the financial records may not be the best form of evaluation as it is, no club in the league has ever recorded profit or breakeven balance sheet. That means investors are more likely to inherit a lot of liabilities rather than physical assets. 

Therefore, the clubs evaluation would be more on aesthetics, which is based on factors such as brand reputation of the club...size of fans followership, trophies won over the years.. which could position the club as a rare asset in the eyes of the potential  investors. 

Yeah, that's how to present club's like Enyimba International, Kano Pillars, Enugu Rangers International... Even clubs like Heartland, Plateau United, Lobi Stars...that's how to present their value to  possible investors. 

Second, most NPFL clubs play in a state owned stadium, except Enyimba International that actually have their own stadium. The big question is would state government sell-off the club with the stadium... to give it more value in terms of assets or would they sell-off only personnel and training equipments of the club? 

Third, are there any sponsorship and endorsement contract running... Unfortunately, apart from Rivers United sponsorship deal with Eunisell, no other club have any of such deals running. 

In one of my previous posts, I estimated that a club like Kano Pillars can be worth $100 million USD based on such aesthetic evaluations as mentioned above. Enyimba may be worth slightly higher and Enugu Rangers fall into this bracket. These clubs has shown  profit potentials if properly managed as a business.