Tottenham's real takeover stance laid bare as £3.75bn price tag still in play

TBR Football has assessed whether we could see any more dramatic changes in the structure of Tottenham Hotspur Football Club after Daniel Levy stepped down as chairman.

Tottenham Hotspur recently released a statement confirming that ENIC had rejected two offers to sell the club and reaffirmed their stance that the club is not for sale.

Meanwhile, the Lewis Family have been making their ambitions clear by claiming they want ‘more wins more often’ following Levy’s departure, suggesting for now, they are going nowhere.

So to assess the current lay of the land in terms of Tottenham’s ownership and whether it could change anytime soon, TBR Football spoke to the site’s finance expert, Adam Williams, about Levy, the Lewis Family and that reported £3.75bn valuation.

Daniel Levy’s role in Tottenham’s ownership made clear

Tottenham supporters noticed that whilst Daniel Levy would be stepping down as chairman, Spurs’ statement confirmed that there would be no changes in the ownership of the club.

This, therefore, raised concerns that Levy would still be associated with the club, but to clarify, the 63-year-old’s stake is in ENIC, rather than directly in Tottenham.

Williams told TBR Football: “Daniel Levy doesn’t directly hold a stake in Spurs. Instead, he owns a 29 per cent interest in ENIC, which in turn owns about 85 per cent of Tottenham. So he couldn’t directly sell his stake in the club to a third party, but he could sell his stake in ENIC, which is based in the Bahamas, privately.

“In theory, there are no restrictions in terms of who he can sell to. It’s his asset, so he can do as he pleases, even if it’s someone the Lewis family isn’t happy with. The only exception is if there is something contractual that states he would need to get board approval, but there isn’t anything statutory that could prevent it, as far as I’m aware.”

Following his departure after almost 25 years at the helm of the club, it will now be interesting to see whether the 63-year-old looks to sell this stake in an attempt to realise some of the value of his investment.

“Whether he wants to sell is another matter entirely. He has been seeking a buyer for several years – that much is a matter of public record. The statement they have issued says Spurs aren’t ’for sale’, but it doesn’t say they don’t want minority investment. They have said in their own accounts that they are seeking investment of some description,” added TBR Football’s finance expert.

“What we don’t know is whose equity they were planning to sell within that. Was it Levy’s, the Lewis family’s, a combination, or could they issue fresh shares and dilute their own stakes?

“It wouldn’t surprise me if Levy was looking to realise some of the value of his own investment. His wealth is wrapped up in Tottenham to a much, much greater extent than the Lewis family’s is in the club. The Lewis family’s wealth is in Tavistock, which owns Spurs but also dozens of other businesses that are more profitable and valuable.

“Incidentally, Josh Levy, Daniel’s son, is co-CEO of Tavistock, which is ENIC’s parent company. That’s an interesting layer.”

Tottenham’s reported £3.75bn valuation is deemed ‘too high’

In order to facilitate a sale in the near future, the reported £3.75bn valuation of the North London club will need to drop.

It is believed that Levy valued Tottenham at £3.75bn, which made talk of a takeover unrealistic, given that this demand was quite unreasonable.

Williams has been told by many in the world of football finance that this valuation is ‘too high’, with deals for Manchester United and Chelsea backing that up.

“Levy reportedly valued the club at £3.75bn, though we don’t know whether that was really his appraisal or ENIC’s. Either way, it’s too high. That’s the opinion of almost everyone I’ve spoken to in that world,” stated Williams.

“For context, £3.75bn is not far off what Sir Jim Ratcliffe’s deal for a quarter of Man United valued them at – and they’re one of the top three football brands in the world. Spurs are big but not that big. Yes, the stadium is one of the best in the world, but they have lost money since they moved into it.

“As an investor, you’re looking for where the return is. I don’t see it at £3.75bn. The fact that the Glazers couldn’t sell at the £6bn they wanted and the feeling in the market is that Todd Boehly and Clearlake have overpaid for Chelsea, says a lot.

“I think it’s quite clear that Levy jumped before he was pushed, but the timing is a little strange. And now, they have borrowed about £90m from Macquarie, an Australian lender, which presumably is needed to meet running costs in the immediate short term. That doesn’t strike me as the type of thing you’d do if you’re anticipating a huge investment, either from a new minority partner or a naming rights deal. At least, not in the near future.

“It’s also somewhat at odds with the reports we’ve seen suggesting the owners are going to invest £100m. ENIC could have loaned the club that amount, and Spurs wouldn’t have to pay any interest.”

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