Preston North End have been put up for sale for £50 million, with the price tag based on the value of the Championship club’s North West rival Burnley’s success in the Premier League.
In a recently touted pitch document, the Lancashire club is described as "a tightly run club with a very good player recruitment programme, potentially on the verge of going up to the Premier League."
"The document says if Preston does go up it could be the next Burnley," said a source who had received the document in November.
At the time, Preston were performing well in the Championship and were seen as serious contenders to be promoted to the Premier league - but the club’s performance has dipped in recent weeks, leaving it scrapping to get back into contention for promotion to the top flight.
Known for overachieving
The source said the document provided a Burnley case study to reinforce how similar the clubs are in identity and structure.
"They line up Preston and Burnley, both of them founders of the Football League, 25 miles from each other, with a similar stadium and capacity, similar sort of attendance and turnover, with Preston a little bit lower when they were in the Championship, with a similar population in the area," said the source.
Although Burnley have see-sawed between the Premier League and Championship in recent years the club are known for overachieving with a relatively small squad based on a limited budget.
...and for £50 million you can get the next Burnley
In the 2017-18 season the Clarets finished seventh in the Premier League, the club’s highest league finish since 1973-74 and qualified for the 2018-19 UEFA Europa League, its first qualification for a competitive European competition in 51 years.
The club recorded a record net profit of £36.6 million during the financial year ending June 2018 and spent only £8.6 million in last Summer’s transfer window.
"You can get the next Burnley"
According to most recent data, Preston paid staff £15 million in wages for the 2017/18 season, modest by Championship standards.
Compared to other clubs pushing for promotion they are by far the club paying the least in wages. Based on the latest public accounts both West Bromwich Albion and Swansea went above the £90 million in expenses on player wages, but those numbers are from a season when both teams were playing Premier League football.
Another Championship top side Fulham paid more than £50 million in wages to their playing squad, while both Nottingham Forest and Leeds United spend around £30 million yearly on wages – compared to the £15 million paid out by Preston North End.
"They show how Burnley have done and how Preston can do the same, with details on its player acquisition and development programme, explaining how good they are at that, and for £50 million you can get the next Burnley," said the football insider.
"The main pitch is Preston having a player recruitment model with similarities to Burnley," he added.
Amongst the strengths of the club named in the document are that Preston’s Deepdale Stadium is owned by the club and the land on which it sits is occupied under a 125-year lease to Preston City Council.
Not so desperate
Also mentioned is the fact that the club owns the freehold of the 14-acre Springfields training ground, and also has ownership of a 24-acre site with planning permission in place to construct a new training facility.
Property magnate Trevor Hemmings, who has been majority owner of Preston since 2010 through his vehicle Deepdale PNE Holdings, is in his eighties and last June his son Craig was named chairman of the club’s board.
It is not thought any advisers have been formally mandated to discuss a potential sale of the club"
A well-placed observer said of the decision to float the document: "Trevor’s not so desperate that he has to get out, It’s just a question of whether someone at some point bites. If they don’t, they’ll just keep on hanging in there until somebody does."
Sources close to the club said it made sense to acknowledge the interest of potential buyers, but added there were no serious conversation with any at the moment. It is not thought any advisers have been formally mandated to discuss a potential sale of the club.
Preston North End had a total revenue in 2018 of £13,3 million – one of the lowest turnovers in the division.