Aston Villa sold to Randy Lerner
I have two GOLDEN RULES when it comes to investments;
- Never invest in football teams
- Never invest in Airlines
I broke rule No.2 once…quite sure I didn’t make money on it. As Richard Branson, founder of Virgin Atlantic, once responded to the question of how to become a millionaire;
Start by being a billionaire and then buy an airline.
I digress. Back to football. By the way, I support Arsenal.
Men, when did Americans begin to love football (called “soccer” in America and Austrialia) so much. First, Malcolm Glazer (owns Tampa Bay Buccaneers). Now Randy Lerner (owns Cleveland Browns American football team).
Today, Aston Villa’s board recommended that shareholders accept Randy Lerner’s bid of £63 million after beating three rival bidders including Michael Neville. A quick scan of the RNS statement shows that Randy Lerner is paying 547p in cash per share. This represents a 47% premium to the share price on the 16 Sept 2005 (not sure why they are using this date as the approach was announced on 1 Sept 2005).
Now look at the share price graph since 1998;
© Selftrade
Ofcourse if you invested in 2003 when everyone else was just recovering from tech bust, you’ll be laughing all the way to the bank.
The future looks very bright for Aston Villa. Recently appointed Martin O’Neill as the club’s manager with the Lerner promising to make £20 million available for new players.
Read more:
Yankee Invasion Or Lifelong Fan For Villa Park Boardroom?
Sentimentality gets us nowhere, Michael
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