American Business man Joe DaGrosa was touted to buy Saints late last year, but the deal then went quiet, now comes news that it could still happen, but the asking price has to come down, but could Saints end up in the same situation that Burnley find themselves in.
DaGrosa is formerly the owner of French Ligue 1 club Bordeaux and was linked with a bid for Newcastle United in 2019.
It was widely reported last year that the American had entered into a period of exclusive talks with Gao over a potential sale, but that period came and went without any deal being struck.
Now it seems that the talks have still been ongoing and DaGrosa is using the media to try and force Saints owner Gao's hand and get the asking price lowered.
Gao has been the subject of some abuse on social media, whilst he hasn't been the owner we had all hoped he would become, it has not entirely been is fault with investment into Western Sport being blocked a couple of years ago meaning he was unable to put his plans into place for the club.
It was reported that he was willing to sell for around £210 million for his 80% stake.
Now sports media outlet the Athletic has quoted DaGrosa on the possibility of the deal still happening.
Speaking to The Athletic, DaGrosa said:
"Southampton are a good club but there are many other good clubs in the league.
"COVID-19 has created a very fluid situation with regards to the financial performance of all clubs. We have to take that into consideration as we contemplate transactions — we pride ourselves on being very disciplined investors.
"Southampton’s management team has done an excellent job, during a very challenging period, in getting a successful refinancing done last summer. Having said that, particularly in this environment, sellers need to have a reasonable expectation of value and it has to be consistent with our view.
"We are open to opportunities that make financial sense. As we evaluate clubs, we are of course looking at not only the price that needs to be paid but capital that needs to be invested subsequently for the deal to make sense.”
The report goes on to say DaGrosa could switch his focus instead to fellow Premier League clubs Crystal Palace, Newcastle or West Ham.
Discussing his desire to invest in the Premier League, DaGrosa said:
"The Premier League is the largest and safest league in Europe. It’s the largest because of its broadcast income and that makes it the safest, too.
"We looked into other markets but decided the EPL was the best market for us. It’s easier to be a medium-sized fish in a big pond than a big fish in a medium-sized pond."
This seems to be an attempt by the American to put the pressure on Gao to drop his asking price, of course many Saints fans will be in uproar that Gao should demand £210 million, but in fairness it is not much different to the price he paid for the club 3 years or so ago.
Yes the situation in football is one of financial turmoil at the moment and although the Gao out brigade that has recently emerged seem to think that it is easy to just sell up and move on, the reality is far from that.
Burnley were recently sold to an American concern for a similar price for an 84% in the Lancashire club, but the truth is Saints are a far more substantial package than the Clarets with a larger ground and infrastructure and with a supporter base far far bigger than Burnley who have a far smaller catchment area and one that is filled not only by the Manchester clubs, but a number of other teams such as Blackburn, Bolton & others in an area that is very territorial.
It should also be noted that around Turf Moor the air is still clearing over the £170m US takeover which has used the club’s own money and loaded it with debt.
Call Gao what you want but at least he didn't do that.
So not only should we be very wary of any potential owners, we should also recognise that although we would prefer Gao to sell the club quickly, he will want to at least recoup a major part of his outlay and that although not good for the sale, is fair to Gao who although not investing the £100 million that some think he should have, has done us no wrong, the fact that we are well run as a club through necessity has made us a good prospect.
The financial implications of Covid 19 has also made us a good target for a buyer to try and get us on the cheap, but surely we are worth a lot more than Burnley who have far less assets and when sold were far from certain of being in the Premier League next season.
Although Saints survival is not yet guaranteed, it will take a total collapse to see relegation happen and that being the case, there is a Premium for being able to buy a club who have safety and therefore planning can be made in the short term
So on one hand it is good news that a potential buyer is out there, but it is bad news that it seems they are wanting to haggle about the price, if their intentions are honourable and they have the money to invest then the odd £10 million is a not a lot of money.
Things will all come out, but at this time it does seem that Gao is asking a fair price, yes there is room for manoeuvre as in all deals, but deals are only done when it is good for both parties.