Tottenham Hotspur is negotiating for a “substantial increase” in equity as the team looks to contend with wealthy opponents in the English Premier League. According to Spurs chair Daniel Levy, Rothschild & Co., a firm with a long history of working with the club, provided advice on the negotiations. Spurs has invested over £600 million in its first-team squads, both men’s and women’s, since the opening of its new stadium in April 2019.
“The club needs a significant increase in its equity base to capitalize on our long-term potential, to continue to invest in the teams and undertake future capital projects,” Levy stated. Spurs would be the most recent Premier League team to raise capital in order to meet the financial demands of competing in a division of opponents controlled by sovereign wealth, private equity, and billionaires.
Spurs outperformed many of its competitors in constructing a state-of-the-art arena that contributes to revenue diversification by drawing in high-profile acts like Beyoncé as part of an expanded events business. The stadium has completely changed the club’s financial situation by bringing in new business partners like Formula One and raising match day income. In February, the two unveiled an F1-themed electric karting facility at Spurs Stadium, which was another indication of the team’s efforts to diversify its income sources and establish itself as a major focus for entertainment.
To the south of its stadium property, the club has planning authorization for a 180-room hotel and roughly 50 apartments. Spurs are hardly the only Premier League team catching up. The owner of a 27.7% share in Manchester United, Sir Jim Ratcliffe, is a businessman in the petrochemicals industry. He just finalized the purchase of a task force to construct a “world class” stadium and renovate Old Trafford.
Spurs said that their yearly sales increased to £550 million in June 2023 from £444 million the previous year. Levy revealed that the team had been in talks with investors. Revenue from match days, prize money from competing in the prestigious Uefa Champions League, and commercial income from sponsorship and outside events were the main drivers of the increase.
According to Tottenham, Levy is the highest-paid director in the company, earning £6.6 million a year in compensation and bonuses totaling £3 million. The club refused to reveal the identify of the director.In defense of his pay raise from £3.265 million to £3.581 million PLUS a £3 million bonus, Chairman Daniel Levy says, “Have you seen the increase in ticket prices for next season? They are harsh.
Operating profit rose from £112 million to £139 million. Nevertheless, the team stated that it made “significant and continued investment in the playing squad” as the reason why its yearly net loss increased to £86 million from £50 million in the fiscal year.
Joe Lewis, whose family is associated with a trust that owns a majority share in the club, entered a guilty plea to insider trading in a US federal court in January, which prompted efforts to attract additional investment. Up to October 2022, the British billionaire with a base in the Bahamas had owned Spurs for almost 20 years. The charges against Lewis have previously been referred to by the Premier League team as a “legal matter unconnected with the club.”
“While Spurs losses over the last three years are high at £232 million, the annual depreciation charge of £72 million for stadium etc. is exempt under Profitability and Sustainability Rules so no worries about a Premier League charge for beaching the limits,” says football financial expert Kieran Maguire.
For the 22–23 season, Spurs earned a record £117.6 million on matchdays. The club made an average of £79.61 per fan per match before VAT, which comes out to £95.53 after adding VAT, with an average home attendance of 61,605 and 24 home fixtures, including cup games.
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