$418 million! That’s the amount of debt Spanish football club Valencia but it’s no deterrence to Singaporean businessman Peter Lim. The Singaporean businessman has a net worth of $2.3 billion and has pledged to wipe out the debts and make money available to buy new players for the club.
Now this is not the first time Mr. Lim had tried to buy a football club. In 2010, Mr. Lim made a failed bid for Liverpool so this bid does not come as a total surprise, but…why Valencia?
I don’t get this purchase. Valencia is so heavily in debt that Mr. Lim would need a sixth of his asset just to clear the debt. Add to that the money needed to buy new players, the money needed to finish their stadium; the total money involved would be well above $500 million.
Also the Spanish La Liga is a league of two, Real Madrid and Barcelona, with Atletico Madrid being the best of the rest. Valencia is a mid-table team at best. They have little to no chance of getting into Europe, much less the Champions League.
Half a billion dollars for a team which isn’t even in Europe? I hope Mr. Lim has a solid plan for the club because from where I sit, that’s too much to pay.