Tottenham’s takeover value has increased by £610 million as Daniel Levy looks to secure new investment in the club.
In Spurs‘ most recent set of accounts, Levy formally revealed what had been a long-standing rumour: the ENIC group is interested in exploring at least a partial sale.
According to the latest data from industry analysts Football Benchmark, the club’s enterprise value has increased by £610 million in the last year alone.
Spurs’ worth has risen to £3 billion, making them the seventh most valuable club in international football, ahead of Paris Saint-Germain, Chelsea, and Arsenal.
It begs the question of what type of investor would be considering a complete or partial takeover of the North London club. Here, we will look at four choices.
Minority Investors
Spurs have hired Rothschilds bank to look for alternative investment opportunities.
That could imply that a minority investor comes on board and provides working finance in exchange for shares in the club.
Spurs are said to have held conversations with numerous parties about a deal of this sort.
A’minority’ investor does not imply that they will not have significant control, however. Levy owns around 30 percent of the team, as does Sir Jim Ratcliffe of Manchester United.
Both figures demonstrate how significant a minority investor can be at a top-tier club, particularly if they have a football experience.
Spurs might be acquired by MSP Sports Capital, Liberty Media, or another private equity entity. MSP Sports Capital currently has the option to buy full control of Everton as part of a financing transaction.
They evaluated both minority and majority investments and hired a consulting firm to undertake due diligence before submitting a proposal.
However, the offer has not yet been fulfilled. Their connection with Everton would further complicate matters.
Liberty Media, the owners of Formula One, is another private equity firm that has been mentioned as a possible contender for Tottenham.
They already have a commercial tie with Spurs, as they are constructing a first-of-its-kind karting track on-site at Tottenham Hotspur Stadium as part of a larger agreement with the club.
Whenever a Premier League club is up for sale, US private equity is involved.
There are other investment organisations that would certainly view Spurs, the most lucrative team in Premier League history, as an appealing addition to their portfolio.
Levy and ENIC stay.
Spurs’ worth has risen year after year for nearly a decade, and it is possible that Levy and ENIC Group are not in a hurry to go – at least not entirely.
It may not be the most evocative option for Spurs fans, but the ownership has transformed the club financially.
They are ahead of the curve in most commercial areas and have secured a permanent seat at the table of Europe’s elite.
Spurs are likely to gain even more value with a new Champions League format and ever-expanding TV deals. They may remain in control for the foreseeable future and maximise the club’s enterprise worth before considering departing.
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