BREAKING NEWS- Daniel Levy set to green-light £3bn Tottenham takeover bid
Daniel Levy is actively seeking new investment for Tottenham Hotspur, but what could this investment look like, and who might be interested in acquiring a stake in one of the world’s most valuable football clubs? As the longest-serving chairman in the Premier League and a lifelong supporter, Levy has wielded significant influence at Spurs through the investment vehicle ENIC, which owns 30 percent of the club.
Following Joe Lewis’s conviction for insider trading in 2022, his stake was transferred to his family trust, leaving Levy as the primary decision-maker for Spurs’ future. Many argue that Levy has been the de facto power at Spurs for years, exerting more influence on the club’s day-to-day operations than anyone else. However, the fact that Levy announced he was seeking fresh investment just 18 months after Lewis was no longer in control is noteworthy.
In his preamble to Spurs’ accounts for 2022-23, Levy revealed that ENIC was in discussions with prospective investors, suggesting significant changes could be on the horizon. To explore what this might mean, TBR spoke exclusively with Kieran Maguire, a football finance lecturer at the University of Liverpool and author/podcaster of Price of Football.
Levy did not specify whether he was looking for minority or majority investment, only stating that the club needed a “significant increase in its equity base.” Recent examples from other Premier League clubs, such as Liverpool and Manchester United, show that both minority and majority stakes can vary greatly in terms of the control they confer. U.S. group MSP Sports Capital had previously shown interest in a full takeover of Spurs, even conducting due diligence. Maguire believes both options are viable, stating, “I think everything is in play.”
According to Maguire, Spurs are an attractive proposition due to their state-of-the-art stadium and training facilities, both of which require no additional investment. Located in London, the club is appealing to American and Middle Eastern investors. However, Levy’s desire to remain chairman could complicate matters. “Levy’s ego and genuine support for Spurs might prove to be a stumbling block unless a deal similar to Manchester United’s with a minority stakeholder offering significant power can be arranged,” Maguire explains.
The value of football clubs is subjective and market-driven. Industry analyses from Forbes and Football Benchmark place Spurs’ enterprise value at approximately £2.6 billion. Maguire concurs, using Liverpool’s recent deal with Dynasty Equity as a benchmark. “Spurs have a revenue of £550 million, so a valuation of five to seven times revenue is reasonable, putting the club’s value at around £2.75 billion,” he says. This suggests a ten percent stake could be valued at approximately £275 million to £300 million.
When it comes to potential buyers, U.S. private equity firms often emerge as key players. Private equity sees Premier League clubs as capital appreciation projects with untapped value. MSP Sports Capital and Liberty Media, the world’s most valuable sports group, have both been linked to Spurs. However, Maguire points out that private equity might not sit well with Spurs fans. “Private equity is primarily focused on financial returns, which might not align with the fans’ aspirations for on-pitch success,” he warns.
The involvement of Middle Eastern sovereign wealth funds has transformed clubs like Manchester City and Paris Saint-Germain. Spurs have been linked with Qatar Sports Investment, the state-backed group behind PSG, as well as Bahrain’s sovereign wealth fund. Levy’s connections to Nasser Al-Khelaifi, president of PSG and QSI, and Bahrain make these potential investors plausible. However, as Maguire notes, “Sovereign wealth funds are a separate issue. The Premier League is already a billionaire’s ego contest, and the objectives of these funds vary greatly.”
In summary, while the future investment in Tottenham Hotspur remains uncertain, several potential scenarios are on the table. Whether through private equity, Middle Eastern wealth funds, or another avenue, the coming months will be crucial in determining the club’s direction and ownership structure.