HONG KONG, July 15 (Reuters Breakingviews) – Former footballer and sports icon David Beckham is in talks to buy the 51% he does not own in his own-brand license manager Seven Global, according to Sky News British. If the quoted $ 40 million price tag is about right, it gets a cut-price deal from its struggling trading partner, Hong Kong-listed Global Brands Group (0787.HK).
The seven-year joint venture, which controls multiple Beckham business partnerships, generated $ 17.2 million in profits in the 12 months leading up to March 2020, according to the accounts of the potential seller. It has not released its latest annual accounts amid questions from auditors about its financial strength.
Suppose that no Beckham brand profit growth, no matter how unlikely, and the price of the joint venture is 20 times that of other brand managers, implies that a 51% stake is worth $ 175 million. . Give Beckham, say, a 50% discount since he’s the brand, and it’s still more than double the price. He shoots, he scores, even off the field. (By Jennifer Hughes)
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Editing by Una Galani and Katrina Hamlin
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