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BC "Rytas" values itself at 9 million euros, seeks strategic investor
๐Ÿ‡ฑ๐Ÿ‡น Lithuania /Sports

BC "Rytas" values itself at 9 million euros, seeks strategic investor

From Delfi · () Lithuanian

Translated from Lithuanian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • BC "Rytas" is seeking a strategic investor but internal discussions about the club's valuation are ongoing.
  • The club's management estimates its value at approximately 9 million euros, based on traditional revenue calculations, after deducting debts and one-time gains.
  • "Rytas" plans to move to the larger "Arena Vilnius" for the upcoming season and aims to increase attendance at home games.

Vilnius basketball club "Rytas" is actively seeking a strategic investor, but the process is complicated by ongoing internal discussions among the six current shareholders regarding the club's valuation. General director Martynas Giga acknowledged that the search for a new partner has taken longer than anticipated.

You know our shareholder structure โ€“ the more of them, the more discussions. The question always arises whether this is the amount one would want, or not yet.

โ€” Martynas GigaThe general director of BC "Rytas" explained the complexity of agreeing on a club valuation due to multiple shareholders.

"The more shareholders there are, the more discussions there are," Giga explained. "The question always arises whether this is the amount one would want, or not yet."

The club's management has conducted an internal valuation, estimating "Rytas" at around 9 million euros. This figure is primarily based on projected revenues over several years, with debts and one-time gains factored out. Giga noted that other valuation methods exist, including the fan base and the potential for another club in Vilnius, but the financial calculation is the most traditional approach.

We have performed a valuation of "Rytas", but there is no single correct methodology for determining the value of a basketball club. I would say the most traditional is based on several years of income.

โ€” Martynas GigaThe general director discussed the methods used to estimate the club's financial worth.

"Rytas" is also planning a move to the larger 9,000-seat "Arena Vilnius" for the upcoming season, having outgrown the smaller "Active Vilnius" hall. The club aims to significantly boost attendance at home games, targeting an average of 4,500 spectators in the Lithuanian Basketball League (LKL) and 7,000 in the FIBA Champions League. They plan to sell 2,500 season tickets, with about a quarter remaining.

If significant sums are invested, everyone will want to control their use.

โ€” Martynas GigaThe general director explained why a controlling stake is likely to be sold to a strategic investor.

Furthermore, the club's future, including its potential move to a new arena within a national stadium complex, is tied to the resolution of the stadium's ownership and management. "Rytas" hopes to be a primary tenant rather than just a renter in any new facility.

I really hope that both one and the other issue will be resolved soon.

โ€” Martynas GigaThe "Rytas" director expressed optimism about securing an investor and finalizing arena plans.
About this summary

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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