Joseph DaGrosa has warned Southampton owner Gao Jisheng that he could look elsewhere for his investment if he does not lower his asking price for the club, with Newcastle United, Crystal Palace and West Ham also being considered by the American investor, according to The Athletic.
It had been reported by the Daily Mail that Southampton had been in talks with DaGrosa over a potential £200m takeover of the club, with the American looking to buy out majority owner Gao and acquire the majority shareholdings in the club. However, those talks had reportedly slowed down after the asking price was raised because of the club’s strong start to the season.
Since then, however, Southampton have hit a difficult period of form in the Premier League, with the Saints having lost five successive league matches and seen their early-season promise falter. The club have also released a financial report revealing significant debts, and finances have naturally been negatively impacted by the ongoing effects of the global pandemic.
It has now been reported by The Athletic that Gao values the club at around £200m, which means that DaGrosa would have to pay £160m to acquire his shares. That price is deemed too high by the American, who has now warned that he will look to put money into another club, with Newcastle, Crystal Palace and West Ham considered as potential options if the Saints owner does not lower his asking price.
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This is a worrying update, with the Saints seemingly in need of extra investment to help take them forward after a difficult January window saw them fail to strengthen in key areas. Gao might need to be more realistic about the club’s valuation if he is to sell it in the near future.
If Southampton miss out on DaGrosa’s investment and he invests in another Premier League club, it could be a major blow for the Saints. Therefore, it is up to the current hierarchy to come to a decision and compromise over the valuation of the club.
DaGrosa seems keen to invest in the Saints, so you would imagine that he would put money on the table if the asking price was lowered slightly. Hopefully Gao may be willing to reconsider his valuation in the near future.
