I may have this wrong but;
From what I have heard other people speculating on;
It is money that could be used to give existing and bought players better contracts; without the need of borrowing from the bank with interest.
I could be wrong though.
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Management ENIC
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From what I have heard other people speculating on;
It is money that could be used to give existing and bought players better contracts; without the need of borrowing from the bank with interest.
I could be wrong though.
Only for non-ENIC shareholders.Is that what they are doing?
Reducing the value of each share?
They have reduced the value of each share by creating more shares for ENIC. Ultimately, what ENIC own is 30% going to DL & family (or, should I say, I can't see any legal avenue that means DL gets cut out of anything, aside from somehow removing the 'potential beneficiary trust' entirely)
Marmalade tomorrow
Tottenham Hotspur owners inject £100m into club
Tottenham Hotspur's majority owners inject £100m of new capital into the club.www.bbc.co.uk
Can someone please explain WTF is going on?
Is it… is it jam today?
Not sure that’s true - apparently his stake isn’t solidThe strangest thing about it, in some unavoidable ways, is that ENIC have put in £100m, but they get that back through additional share dilution, so effectively the other 13% or so are kind-of 'chipping in' by having their stakes reduced pro-rata. (basically the 13%'s total stock is reduced by £100m and ENICs 86% gets £100m more of % added).
But because the Levy Family trust is supposedly due 30% of ENIC, I guess that effectively gains £30m in 'value'.
So, the club gets £100m to spend and Levy gains £30m, so everyone obsessed about how much he was getting paid as a chairman can now be annoyed that he's just gained £30m more by doing fuck all
They are going to fire it out of massive cash cannons at half time of the Villa game. 2 cannons per stand.
that's what I've pointed out before, but everyone has always ignored it so I'm going on the basis of what that 'potential beneficiary trust' is worth
I'm confused. My knowledge here is sketchy so please forgive any ignorance in the guesswork that follows.The strangest thing about it, in some unavoidable ways, is that ENIC have put in £100m, but they get that back through additional share dilution, so effectively the other 13% or so are kind-of 'chipping in' by having their stakes reduced pro-rata. (basically the 13%'s total stock is reduced by £100m and ENICs 86% gets £100m more of % added).
But because the Levy Family trust is supposedly due 30% of ENIC, I guess that effectively gains £30m in 'value'.
So, the club gets £100m to spend and Levy gains £30m, so everyone obsessed about how much he was getting paid as a chairman can now be annoyed that he's just gained £30m more by doing fuck all
- If ENIC has in effect issued £100m of extra shares in the company, then that dilutes the notional value of each 'share' in ENIC.
- The Lewis family has bought all of these shares (or this share) in this transaction, whereas Levy and family have not.
- Therefore the Lewis family has increased the proportion of shares they own in ENIC (slightly diluted in value per share), while Levy's proportion is reduced. So, he owns a little less of ENIC, and his shares are slightly diluted in value.
- If, as owners of the majority holding in ENIC, the Lewis family might have forced this through, it seems likely to me that Levy consented to this (see below). All of this happens in the Bahamas, which, though there is a regulatory regime, seems less transparent in nature (?).
- As in the last major transaction, ENIC will thus own a little more of Spurs and the 30,000-odd small shareholders will own a little less.
- To me, this doesn't look like Levy and family gain £30m in cash or in kind. In fact, in terms of notional value, their holding in ENIC and therefore the club has reduced by a small amount, and the value per club share has been diluted a little bit.
- However, in the big scheme of things the notional value per share is far less than the 'market' value (if that's the right term) in the event they are sold to an external investor.
- If this £100m injection helps facilitate a growth in turnover, or, let's say, an increased growth in turnover than would otherwise have occurred, then everyone benefits, the Lewis family, Levy and family, and the club's small shareholders. This is because the (extra) increase in turnover will augment the value of the club should it be sold. This is why Levy may well have consented to the transaction.
- If everyone's a winner, then the Lewis family will win a little more in return for their increased shareholding.
Is that broadly right?
If that happens I would imagine Levy will buy a touted ticket, stadium ban or no stadium ban, and join in with the on pitch round up of cash.
Some of it is his after all.
The Lewis family haven't increased their holdings of ENIC - they have diluted those of the other shareholders.
ENIC have effectively put £100m into Spurs, but they haven't done it for free; they have allotted themselves 13,493,731 shares at a value of £7.410849 each.
So the club has sold £100m of itself to ENIC for £100m. The club keeps the £100m. The other 13.x% of the club, the other shareholders, now own £100m less.
If you simplify and say 86%/14% split...
ENIC now own 248,304,873 shares. So before this investment, they had 234,811,142 shares.
If 234,811,142 was 86%, then in total there must have been 273,256,055 shares (234,811,142/0.86). If you add on the shares they just issued, there's now a total of 286,749,786 shares. This would mean that ENIC exchanged £100m for another 0.6% of the club (bear in mind the 86/14 is rounded to approx whole numbers and is arbitrary).
Before the issuance, the 14% had 38,247,847 shares. This now represents around 13.3% of the company (losing 1% in rounding).
In short, ENIC now own around 0.65% more of the club and the other 14% now own about 0.65% less. Or in other ways of looking at it, ENIC (incl. Levy) now own £100m more of Tottenham Hotspur, and collectively everyone else owns £100 less.
So overall, 286,749,786 x £7.410849 means the club is valued at £2,123,485,204.45 in that transaction.
Oh, and Levy and his family are still "discretionary beneficiaries" of ~30% of ENIC, and thus ~30% of the extra £100m ENIC now own
This values the club at c. £14bn
Can you count
I doesn't - it values the club at £2,123,485,204.45
The increase in stake (%) is not relative to the amount of shares purchased. The maths don't work like that
Will help pay the 250m we still owe on transfers
Thanks
CJJ
, appreciated. I was struggling with the idea that the overall value of the company in terms of market capital (if that's the right term) would not change, therefore the increase in shares would lower the notional value per share. But we are talking about 'share capital' (again, if that's right). You put me right, thanks.
It all makes sense at the level of ENIC's ownership of Spurs (THL), which would be announced by the Stock Exchange. But what about at the level of the ownership of Bahamas-based ENIC, where no such announcement is formally required (if I have that right)?
What you say also applies to the previous two share issues in May 2022 and December 2024, where ENIC – co-owned by the Lewis family, and Levy and family – allotted themselves shares in return for the injection of money.
But how does this work if, as announced, it's only the Lewis family putting in the funds? This is different from the previous ENIC capital injections. Aren't the Lewis family alone in buying the shares in ENIC and therefore Spurs? By implication, haven't the Lewis family increased their ownership of ENIC by £100m, reducing the proportion (by a small degree) owned by Levy and family?
Wouldn't this then apply to the relative shares of the two families in ownership of Spurs?
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This is improving cash flow, flexibility, etc., to avoid more debt on the books, is that right?
This might not only apply to previous transfers but also (a) to future transfers, (b) to the further investment in the training ground for the women's team, and (c) to any further investment in the profit-making 'southern development'. It sounds to me that future injections will be required.
My (deluded?) hope is that the flexibility would allow the wages/turnover ratio to rise to a more sensible level, putting us in the market for 'next level' players as we strengthen the squad. The more attention given to this, the better.
Levy has made the Lewis family billions. I'm surprised he appears to have been shat on them from a height, but perhaps the overarching 'trust' is what Joe put in to make sure he wasn't completely frozen out.
It has been said that DL has put in his own money in the past, when no investment was forthcoming from Tavistock etc. Not sure what really is going on behind it all.
I suspect Joe Lewis has done more for Levy than Levy has done for Lewis. A whole lot more. Levy did not have money, Lewis did, lots of it, and provided a vehicle for Levy to get involved with ENIC and build his own fortune. Whilst Levy did build up us up from being worth 80-odd million to 3.5 Billion, a lot of that was to do with all PL clubs growing in value as the PL evolved into the richest football league in the world. Levy was the highest paid chairman in the league, clearly loved his job, and has become close to being a billionaire through his own share holding. Not a bad gig.
Joe Lewis is now 88, and I doubt he is involved much at all in his family business, who even knows if he still has his marbles? I also doubt his kids have that much time for Levy, who have probably spent most of their adult lives wondering why their dad was giving him so much free reign in one of the major family Lewis businesses.
Personally, I am loving what the Vivienne and Charles Lewis are doing. They undertook an audit and review of the whole club, replaced what was effectively a one man dictatorship with a modern corporate structure, with a board that is separate to the day to day running of the club and finally some accountability. And they're investing capital into the club in a way that their dad never did. People saying "it is only £100M" do not understand how football finances or the PSR rules work. It is a very positive step.
Listen to 'The Lab' podcast that came out on Thursday with Flav our very own (the FIghting Cock) and a football finance expert / spurs fan. Really insightful and interesting stuff.
Last 6 or 7 months has seen a real rebuild from the top down...
New Non-Exec Chairman of the Board (Charrington)
New CEO (Vinai)
New Manager (Frank)
New Captain (Romero)
We're in the top 4, and have only lost 1 of our first 10 PL and CL games, with the 2nd best defense in the league. And that is without Solanke, Kulusevski, Muani or Maddison!
The future really is very bright!
To be fair Levy was the heir to the Mr Byrite fortune. That famous household name synonymous with fashion and good business decisions.