Results and selling a bit of the club... | Vital Football

Results and selling a bit of the club...

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Tottenham board in discussions with prospective investors about selling stake in club​

Tottenham Hotspur's English chairman Daniel Levy reacts during the English Premier League football match between Southampton and Tottenham Hotspur at St Mary's Stadium in Southampton, southern England on March 18, 2023. (Photo by Adrian DENNIS / AFP) / RESTRICTED TO EDITORIAL USE. No use with unauthorized audio, video, data, fixture lists, club/league logos or 'live' services. Online in-match use limited to 120 images. An additional 40 images may be used in extra time. No video emulation. Social media in-match use limited to 120 images. An additional 40 images may be used in extra time. No use in betting publications, games or single club/league/player publications. / (Photo by ADRIAN DENNIS/AFP via Getty Images)




Tottenham Hotspur are “in discussions with prospective investors” about selling a stake in the club, chairman Daniel Levy has confirmed.

In a statement accompanying Tottenham’s financial results for the year ending June 30 2023, Levy said: “To capitalise on our long-term potential, to 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 discussions with prospective investors. Any recommended investment proposal would require the support of the club’s shareholders.”



Levy’s statement led to questions about whether Tottenham’s owners ENIC were about to sell up, but the club say the talks are over selling a stake, not a full-scale change of ownership.

Either way, it is a potentially significant step for Tottenham, who in their results announced that they had made a total loss in the period of £86.8m, up from £50.1m in the year ending June 2022.

This was despite total revenue exceeding £500million ($629m) for the first time, a 24 per cent increase to £549.6m from £444.0m the previous year. This was helped by match receipts increasing to £117.6m, up from £106.1m. Profit from operations before depreciation, amortisation, player trading, interest and taxation meanwhile increased to £138.7m (up from £112.3m in 2022).
Spurs’ growing revenues led to renewed calls from the Tottenham Hotspur Supporters’ Trust to reverse its decision to increase season ticket prices by six per cent and tighten the rules around senior concessions. There will undoubtedly also be frustration from some supporters at Levy’s pay being increased from £3.3m to £3.6m, in addition to a £3m bonus.

Spurs season ticket holders rage at 6% price hike and tighter rules around senior concessions
Spurs explained last month that the ticket price hike was because of “a significant increase in matchday costs”, and in his statement on Wednesday morning, Levy spoke about rising costs more generally, saying the club expected “the impact of rising costs, caused by geo-political events, to continue to impact all areas of our operations.”

Elsewhere in his statement, Levy pointed to Tottenham’s “multi-use stadium” as being a key revenue stream. “Our turnover has exceeded half a billion pounds for the first time,” he wrote. “Whilst UEFA monies contributed, this has also been driven by increased stadium revenues from both football and non-football events and additional revenue streams. This is the impact of our multi-use stadium and what our board has been focussed on delivering in order to invest in our football in a financially sustainable manner. The absolute priority for our Club is to deliver on-pitch success.”

Levy added, in relation to the Premier League’s profit and sustainability rules (PSR) that Tottenham “remains fully compliant with the Premier League’s PSR and is supportive of the enhancement of PSR to ensure the Premier League remains competitive and sustainable”.
 
80deg16minW said:
An equity injection to what end?
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As you know, I've been expecting this for the last year.

It could just be Old Joe's daughter and son cashing some shares in to grab some cash - same for Levy and family.

It most likely will also to be to boost the balance sheet; so some paydown of debt, which in turn would allow the club to spend more than the cash they can generate in the short term for investment into players.

It's as I said it would be - all on the table.

I wouldn't be surprised if up to 25% of the controlling share could change hands - which at a valuation of between £2.5-3 billion (ok 3 might be a stretch), it could raise as much as £500-750 mill, what is impossible for me to know now, is how much of that wil get pumped into the balance sheet, and how much will end up in the major holders bank accounts.

Either way, it is a tremendous step in the right direction for the clubs future.
 
Spursex said:
As you know, I've been expecting this for the last year.

It could just be Old Joe's daughter and son cashing some shares in to grab some cash - same for Levy and family.

It most likely will also to be to boost the balance sheet; so some paydown of debt, which in turn would allow the club to spend more than the cash they can generate in the short term for investment into players.

It's as I said it would be - all on the table.

I wouldn't be surprised if up to 25% of the controlling share could change hands - which at a valuation of between £2.5-3 billion (ok 3 might be a stretch), it could raise as much as £500-750 mill, what is impossible for me to know now, is how much of that wil get pumped into the balance sheet, and how much will end up in the major holders bank accounts.

Either way, it is a tremendous step in the right direction for the clubs future.
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An existing share sale in combination with new equity? Levy sounded like it was a pure issuance play.
 

Daniel Levy ‘in discussions’ over Tottenham investment after club posts £86.8m losses​


Spurs put losses down to ‘significant investment in the playing squad’ and are seeking an injection of equity



Telegraph Sport 3 April 2024 • 10:58am


Tottenham are “in discussions with prospective investors” in a bid to “capitalise on our long-term potential”, chairman Daniel Levy has revealed.

The Premier League club’s total revenue for the financial year to June 30, 2023 exceeded half a billion pounds for the first time, with the figure of £549.6 million a significant increase on £444 million for the previous year.
However, operating expenses including first-team costs have risen by 21 per cent to £487.9 million, with a loss of £86.8 million put down to “significant and continued investment in the playing squad” in the financial results published by the club on Wednesday morning.

Levy announced in his statement accompanying the results that Spurs were looking for an injection of equity.

He wrote: “To capitalise on our long-term potential, to 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 discussions with prospective investors. Any recommended investment proposal would require the support of the club’s shareholders.”

Revenue from match receipts, Uefa prize money, television and media and commercial all increased on 2021-22, as did the profit from operations which rose from £112.3 million to £138.7 million.

The club report that their net debt as of June 2023 was £677.4 million. Over 90 per cent of their borrowings of £851.2 million are at fixed rates, with an average interest rate of 2.79 per cent.

“We expect commercial revenues to rise from third-party events, although this will not compensate for the lack of European football this season,” Levy wrote.
“Additionally, as reflected in these results, we expect the impact of rising costs, caused by geo-political events, to continue to impact all areas of our operations.

“Our ethos is clear - to be far-sighted and run the club sustainably. This involves strict control of our cost base, increased commercial and sponsorship revenues and consistent European participation, all of which are key to our ability to continue to invest in the squad and win top honours.

“Since opening the stadium in April 2019, we have invested over £600 million in our men’s and women’s first-team squads.”
 
the Trust's statement seemed a bit rushed. Complaining about increased prices amidst greater revenue but ignoring the £86.8M elephant in the room.

In an ideal world we'd sell our dross for profit but we've been awful at offloading our costly mistakes and Ndombele and Sessegnon alone look like £88M worth of transfers leaving on a free after taking home millions in wages without contributing much on the pitch.
 
freundorfoe said:
the Trust's statement seemed a bit rushed. Complaining about increased prices amidst greater revenue but ignoring the £86.8M elephant in the room.

In an ideal world we'd sell our dross for profit but we've been awful at offloading our costly mistakes and Ndombele and Sessegnon alone look like £88M worth of transfers leaving on a free after taking home millions in wages without contributing much on the pitch.
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What you talk about is that age old problem at Spurs. If we can just find ourselves in a period of stability at the leadership layer, I think we could get the squad way more optimised. It always seems bloated because of prior transfer decisions. That creates a heavier cost, and now we're seeing some write-offs in the P&L.

Wouldn't it be nice to start a summer and not have to get rid of an entire team every year?

Whiteman
Tanganga, Rodon, Davies
Spence, Hojbjerg, Ndombele, Reggie
Gil, Parrott, Sess
 
muttley said:
What you talk about is that age old problem at Spurs. If we can just find ourselves in a period of stability at the leadership layer, I think we could get the squad way more optimised. It always seems bloated because of prior transfer decisions. That creates a heavier cost, and now we're seeing some write-offs in the P&L.

Wouldn't it be nice to start a summer and not have to get rid of an entire team every year?

Whiteman
Tanganga, Rodon, Davies
Spence, Hojbjerg, Ndombele, Reggie
Gil, Parrott, Sess
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While I do agree with this sentiment, I would imagine this is something that fans of many clubs are likely saying.
 
meee93 said:
While I do agree with this sentiment, I would imagine this is something that fans of many clubs are likely saying.
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I've said the same thing myself before. No club is ever "optimal" on the playing squad side of things. We've just been on the extreme end of "sub-optimal" so many times over the years. Frank Arnesen just went down the quantity over quality route. Guys like Stockpile Harry left us with a problem that took years to fix. AVB didn't help and Poch ended up clearing out about 30 players over 2 summers.

We actually have a fighting chance this time. A lot of the surplus are mostly amortised and go end of contract within 15 months.
 
muttley said:
I've said the same thing myself before. No club is ever "optimal" on the playing squad side of things. We've just been on the extreme end of "sub-optimal" so many times over the years. Frank Arnesen just went down the quantity over quality route. Guys like Stockpile Harry left us with a problem that took years to fix. AVB didn't help and Poch ended up clearing out about 30 players over 2 summers.

We actually have a fighting chance this time. A lot of the surplus are mostly amortised and go end of contract within 15 months.
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Precisely this, it always seems like we have plenty of 'squad players' that rarely see the light of day. In reality this looks like 8 good players, 3 VERY good players, and the rest are either rotated to accommodate injuries or waiting to be loaned/sold.

Some of those players we let go for peanuts then go on to bigger and better things leaving us wondering why on earth we couldn't get a tune out such incredible talents (GDS, KPB, Taraabt, El Hamdoui, the list goes on)

I can't wait for the day when we have 2 teams of 11 desperately fighting it out for a spot in the team sheet come match day.
 
On a different side ,,the club has paid off the debt on the training complex , in entirety.

How much is the land all around the stadium worth , that is owned by the club , including shops , houses and goods yard .
 
Walthamstow wanderer said:
On a different side ,,the club has paid off the debt on the training complex , in entirety.

How much is the land all around the stadium worth , that is owned by the club , including shops , houses and goods yard .
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I believe there are planning applications either approved or in process for all of these areas as part of the Northumberland Development project which included the stadium and hotel. The goods yard and the area in Park Lane have housing planned and the area including shops opposite on the high road have mixed housing, retail and leisure I think.
 
It's an interesting financial picture. All in, we've apparently made about £260m loss over the last 3 years. However, the clubs infrastructure costs average over £70m a year. So the PSR measurement allows £105m, but exclude infrastructure so their measurement is closer to £40m. Apparently, academy costs are also excluded in PSR so they measure us as close to break even.

It's intriguing how the PSR model works.
 
TQ2Spurs said:
I believe there are planning applications either approved or in process for all of these areas as part of the Northumberland Development project which included the stadium and hotel. The goods yard and the area in Park Lane have housing planned and the area including shops opposite on the high road have mixed housing, retail and leisure I think.
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www.hotelowner.co.uk

Tottenham Hotspur receive hotel planning approval - Hotel Owner

Tottenham Hotspur has received planning approval for a new hotel to be built at the south of the Tot
www.hotelowner.co.uk www.hotelowner.co.uk

Just got planning approval for the hotel to be built in time for Euro 28 games at the stadium.
 
Niall D said:
Hi LC,
I would happily accept a very good 18 or19 players in rotation and competition for places, and for me we ain't far away.
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Off the top of my head, this is how I'd see how that would look:

Vicario/New GK

Porro/New RB,
Romero/Phillips*
VDV/Dragusin
Udogie/New LB

Bissouma/Bentacur
Sarr/New B2B CM
Maddison/New CAM

Johnson/Kulu
Richie/New CF
Son/Werner

I'd argue it's more like 15/16 players right now, with Phillips being an asterisk because he may not be quite ready next season.
 
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