It also demonstrates that football clubs aren't big businesses, but rather large appreciable assets.
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Management ENIC
- Thread starter The Fighting Cock
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1) I'm guessing you are talking about new shares as a private placement. - if new shares are issued, you suggested 375m in new shares, then that is added to the value of the club as the money raised would immediately becomes an asset - so not a 1.7b value but now 2b. To buy that 25% will thus cost 500m.
2) Yup
3) Yup
The problem with option 1 is no individual is likely to invest 500m in a company where they have a minority say, the 75% that DL + ENIC still hold will maintain full control. You could sell the shares in blocks to Spurs fans and small investors, which is probably doable, then you give THFC an extra 500m to spend, but it would all be in the hands of the current board.
Since when are we 700 million pounds in debt to ENIC?
We're not.
The stadium is owned by THFC so the debt comes into any negotiations.
The new buyer has to take on the debt, as well as buying the club.
We aren't, it's the financing on the stadium. A new owner would pay the purchase price and take on the debt too.
Maybe I'm misunderstanding the whole point of corporations, but I figured that debt is only THFCs debt? Not whomever the owner is?
Liverpool placed 10% of new shares with what looks like a US private equity firm (including a few sports stars such as LeBron James) in Spring 2021 raising over £05 bn for club funds.
I'd agree that someone buying in 25% might want more management control, but I think the right partner prepared to buy 10% would make sense for both Lewis/Levy and Spurs - reason being is that Spurs do need heavy investment in the squad. So the equation becomes that owning 90% of the pie is of higher value than 100% of a smaller value pie (the smaller value being if limited investment in players means infrequent CL appearances which not only impacts UEFA prize money, sponsorships etc).
If that minority partner brings ties in say USA or Asia which can bring in greater commercial income or even just brand recognition in other parts of the world as well s a cash injection, it becomes an even bigger pie of which ENIC still owns a big part.
In my view, a placing of new shares representing a 10% stake in the club bringing in say £250m -£300m would be good for all parties.
It is THFC debt - but that means any owner has to pay off the debt over time out of Spurs revenues.
This means that the 'Enterprise Value' of Spurs is £3 bn, but the equity is worth £2.3 bn with debt being £0.7bn.
You'd be stunned that ENIC put too high a price on something? REALLY? (Edit: Misread that)
Quite right, that's likely a starting price ffs.
The key question to ask if you are given a valuation is 'Are you buying or selling' ?
For obvious reasons a seller gives a high valuation .......
£40m rumoured asking price for Winks and given the Dele deal, it may well have been an accurate report.
They'll never get naming rights or sell the club if they keep charging premium for a lesser product.
I wonder if all the property deals etc. are all under the club umbrella or if ENIC will keep any linked companies not strictly to do with football etc.
Unless the banks have guarantees on the debt by ENIC and wold only agree toENIC selling their shares if the new owners guaranteed the debt.
Conte just let Levy have it… maybe this is why Hitchen quit
www.dailymail.co.uk
Tottenham boss Conte tells Daniel Levy he's made transfer 'mistakes'
Tottenham manager Antonio Conte has sent a message stating the club made mistakes in the transfer market which resulted in a 'very strange January window.
Conte just let Levy have it… maybe this is why Hitchen quit
Tottenham boss Conte tells Daniel Levy he's made transfer 'mistakes'
Tottenham manager Antonio Conte has sent a message stating the club made mistakes in the transfer market which resulted in a 'very strange January window.
Yeah but
Tottenham Hotspur Limited (which owns the club) also owns a number of companies which own properties.
There is a separate group of companies which are owned by ENIC which own company in Tottenham (and elsewhere).
In the last few years Spurs have sold a lot of players for far less than most fans were expecting (Aurier - released from contract, Trippier to Atletico, Dele to Everton etc) so its clear that the 'reputation' of Levy at over pricing players and hence not selling them is not accurate.
Interesting.
Trippier made a massive profit and Dele will make a sizeable-massive profit depending on appearances.
Aurier was released because he would have been like a bad smell around the club and you can bet your arse that the club lost less money by paying him off than actually having him see the contract out.
It doesn't even have to be that. If the club fails to pay interest on debt or fails to repay loans when due (mostly in 20 years time but £22m related to training ground is repayable in about 3 years time), then Bank will call on the assets held by Spurs (eg stadium) so equity then becomes worth an awful lot less.
Got it. So Levy and co really did hamstring us.
Usually companies are bought and sold for a value, all in. I.e assets and liabilities. Levy and co have straddled us with nearly a billion in stadium debt, but also want that in addition to whatever they sell us for.
No one would pay that. Some would have paid 2 billion though.