£610m boost for Tottenham as club officially for sale, four takeover options explained
Tottenham have seen their takeover value soar by £610m amid Daniel Levy’s attempts to procure fresh investment in the club.
Levy officially revealed what has been an open secret for some time in Spurs’ last set of accounts: that ENIC group are keen to explore at least a partial sale.
And the latest figures from industry experts Football Benchmark reveals that the club’s enterprise value has risen by £610m in the last year alone.
The hike, which sees Spurs‘ value reach the £3bn mark, makes them the seventh most valuable club in world football, ahead of the likes of Paris Saint-Germain as well as London rivals Chelsea and Arsenal.
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It raises the question of what kind of investor might be eyeing a full or partial takeover of the North London club. Here, we take a look at four options.
Minority investors
Spurs have appointed the Rothschilds bank to search for alternative investment options.
That might mean a minority investor comes aboard and provides working capital in exchange for equity in the club.
It is believed that Spurs have held talks with several parties regarding a deal of this nature.
A ‘minority’ investor doesn’t mean that they won’t have substantial control, however. Levy himself owns roughly 30 per cent of the club, as does Sir Jim Ratcliffe at Man United.
Both of those figures show how influential a minority investor can be at an elite club, especially if they have a background in football.
MSP Sports Capital, Liberty Media or another private equity group
MSP Sports Capital, who have the option to take full control of Everton as part of a financing deal at present, are one name that have been linked with a potential Spurs takeover.
They considered both minority and majority investment and enlisted a consultancy firm to conduct due diligence ahead of a bid.
That offer has not yet materialised, however. And their involvement with Everton would complicate matters.
Liberty Media, owners of Formula One, are another private equity group that have been suggested as a potential suitor for Spurs.
They already have a commercial relationship with Spurs as they are building a first-of-its kind karting track on site at the Tottenham Hotspur Stadium as part of a broader partnership with the club.
Whenever a Premier League club is up for sale, US private equity is in the mix.
There are umpteen investment firms that would likely see Spurs, the most profitable club in Premier League history, as an attractive addition to their portfolio.
Gulf-state ownership: Qatar or Bahrain
The Qatar Investment Authority, who failed in a bid to buy Man United, have been named among possible suitors for Tottenham.
It is almost implausible that they wouldn’t have been contacted if the club was for sale, but whether they see them as the option for them is up for debate.
Levy is also professionally close with PSG president Nasser Al-Khelaifi, who is chair of Qatar Sports Investments, another sovereign wealth fund.
The pair are believed to have held talks regarding minority investment last year, although Tottenham themselves have denied they ever took place.
In any case, as Al-Khelaifi also chairs the European Club Association, it would not be unusual for the two to meet to discuss intra-club matters.
Levy also has close ties to Bahrain and was a guest of honour at the Grand Prix in the Gulf state last year.
Bahrain and Kuwait are the exceptions in the Gulf in having not yet made significant inroads into football. Could Tottenham represent the opportunity to do just that?
Levy and ENIC stay
Spurs’ value has been climbing year on year for close to a decade and it may well be that Levy and ENIC Group are in no rush to leave – at least not completely.
It might not be the most evocative option for Spurs fans, but the ownership have – from a financial point of view – been transformative for the club.
They are ahead of the curve on most things commercially and have managed to get a permanent seat at the table among Europe’s elite.
With a new format in the Champions League and ever-growing TV deals set to add even more value to Spurs, they may stay in control for the foreseeable future and max out the club’s enterprise value before they even consider leaving.