Spurs disclose their newest set of financial data, as chairman emphasises the necessity for a “significant increase” in investment.
The Tottenham chairman, Daniel Levy, confirmed this morning that he is in talks with “prospective investors” about selling a part in the team.
Levy stated Spurs needed new investment to realise their “long-term potential” in a statement accompanying the club’s financial results for the fiscal year ending June 30, 2023.
In September, the chairman told Bloomberg that he had a duty to “consider anything anyone may want to propose,” albeit the current discussions with mystery bidders are known to be about a minority share in the club rather than a full sale and change of ownership.
According to Levy’s statement, “To capitalise on our long-term potential, continue to invest in the teams, and undertake future capital projects, the Club requires a significant increase in its equity base.”
“The Board and its advisors, Rothschild & Co., are in conversation with potential investors. Any recommended investment idea would need the approval of the Club’s shareholders.”
Spurs have long been rumoured to be on the market, and Levy has met with a number of potential investors, including Paris Saint-Germain president and Qatar Sports Investments chief Nasser Al-Khelaifi – though the Qataris have since dropped their interest in purchasing a stake in the north London club.
Levy also stated in September that he had “no real interest” in leaving Spurs, and that selling a minority stake would allow the chairman to maintain control while potentially expanding spending power.
Since taking over as chairman in 2001, Levy has always kept the club within its means, leaving fans disappointed by Spurs‘ seeming incapacity to compete in the transfer market with its wealthier competitors.
ENIC, an investment company, now owns 86.58 percent of Tottenham, with Levy and family members owning 29.88 percent.
Spurs‘ former owner, 87-year-old Joe Lewis, ceased to be “a person with significant control” of ENIC and Spurs in late 2022, and the revelation that Levy is considering a sale comes the same week the billionaire is scheduled to be sentenced in the United States after pleading guilty to insider trading last month.
Spurs declared increased revenue of £549.6 million, up 24% from the previous year’s figures of £444 million, as the club broke the half-billion mark for the first time. However, losses for the year totaled £86.8 million, up from £50.1 million in 2022, reflecting the club’s “significant and ongoing investment in the playing squad.”
The optimistic statistics were driven by a rise in commercial income from £183.5 million in 2022 to £227.7 million last year, as well as UEFA prize money (£56.2 million, up from £10.2 million) and TV and media revenues (£148.1 million, up from £144.2 million).
“Our turnover has exceeded half a billion pounds for the first time,” read Levy‘s statement. “While UEFA funds contributed, this has also been driven by rising stadium earnings from both football and non-football events, as well as new revenue streams.
“This is the impact of our multi-use stadium and what our Board has been working to achieve in order to invest in our football in a financially sustainable manner. Our club’s top aim is to achieve success on the pitch.”
“We have operated in a fiscally sustainable manner and can now maximise the full worth of important assets, such as the outstanding facilities at our multi-use stadium and training site, which now includes our newly opened ‘Club House’ media hub. Hosting XR stage technology is already improving the level and quality of our content for viewers and will create new income opportunities.
“We expect commercial earnings from third-party events to increase, but this will not compensate for the absence of European football this season. Furthermore, as demonstrated by these results, we anticipate that growing costs as a result of geopolitical events will continue to have an influence on all aspects of our business.”
The club announced that operating expenses before football trading increased by 21% to £487.9 million from £403.4 million in 2022 due to “increased first team costs, the hosting of multiple non-football events and cost rises outside of our control such as utilities, rates, consumables, and increases in the London Living Wage.”
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