Daniel Levy confirms Tottenham in talks over selling stake in club

[mawspurs]

Daniel Levy, the Tottenham chairman, has revealed he is in talks with “prospective investors” about selling a stake in the club.

In his statement accompanying the club's financial results to the year ending June 2023, Levy said Spurs needed new investment to reach their “long-term potential”.

Source: Evening Standard

 

[mawspurs]

Spoiler: Football London Coverage

Daniel Levy admits Tottenham in talks with new investors amid record-breaking financial results​

Tottenham Hotspur have announced their financial results with the club bringing in more money than ever before in its history

Tottenham chairman Daniel Levy has admitted that the club are in talks with potential investors after the latest set of financial results brought a record revenue of £549.6million but also a loss of £86.8million.

Spurs have announced their results for the 2022/23 financial year and it shows that for the first time the club's revenue at their cash-generating stadium rose above half a billion pounds, an increase of 24% from the previous year's £444million to £549.6million. That included match receipts of £117.6million, up from £106.1million the previous year.

"Our turnover has exceeded half a billion pounds for the first time," said Levy. "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."

The Spurs chairman admits that "the board and its advisors, Rothschild & Co, are in discussions with prospective investors" as the north London outfit needs to "continue to invest in the teams and undertake future capital projects, the club requires a significant increase in its equity base".

The report also showed that Levy was paid £3.581million last year, up from £3.265million the previous year, and received an accrued bonus of £3million paid across the year. The Spurs chairman received a £3million bonus back in 2019 upon the completion of the Tottenham Hotspur Stadium.

Recent estimates of the increase the club would receive in season ticket sales next season from the 6% bump to prices was placed at between £2.5million and £3million.

Spurs also announced that in the transfers since the financial results were published, including Harry Kane's move to Bayern Munich, resulted in a net expenditure of £108.893million.

The financial results show that UEFA prize money was £56.2million, up from £10.2million, to reflect the difference between a COVID-enforced group stage exit from the Europa Conference League the prior year to reaching the Champions League round of 16 last year. TV and media revenues were up slightly to £148.1million from £144.2million thanks to the new Premier League broadcast deal.

There was a big jump in commercial revenues from sponsorship, merchandising and other revenues such as third-party events, visitor attractions and conferences and events, along with the return of a lucrative pre-season tour to South Korea that summer, all of which increased that revenue to to £227.7million from £183.5million.

The club announced that operating expenses (before football trading) rose by 21% to £487.9million from £403.4million in 2022 due to "increased first team costs, the hosting of multiple non-football events and cost rises outside of our control such as utilities, rates, consumables and increases in the London Living Wage."

The profit from operations before depreciation, amortisation, player trading, interest and taxation increased to £138.7million from £112.3million, but the loss for the year after depreciation, amortisation, player trading, interest and taxation rose to £86.8million from £50.1million, which the club said reflected "the significant and continued investment in the playing squad".
The club's net debt at 30 June was £677.4million, up from £626.1million, stating that: "over 90% of our financial borrowings of £851.2m, are at fixed rates, with an average interest rate of 2.79%. The average maturity of all our borrowings is 19.4 years, some of which stretch until 2051. As with prior years no dividends have been paid."

In the chairman's statement, Levy spoke about the upheaval in the dugout with four different people taking charge of the team, culminating in the appointment of Ange Postecoglou.

"During this period, we reached the Champions League Round of 16. A disappointing second half of the season saw us reach an agreement for the departure of Antonio Conte as Head Coach. We thanked Cristian Stellini and Ryan Mason for overseeing the First Team for the latter part of the season. When Antonio arrived, we were eighth in the Premier League and, despite securing a fourth place finish in the previous season, we finished in eighth position," he said.
"During this period the Academy won an unprecedented double, lifting the Under-17 and Under-18 Premier League Cups. A full review of our footballing functions had already started during this time, and we began to implement changes across several fronts from the Academy through to First Team operations. Outside of this period, Scott Munn joined as Chief Football Officer and, more recently, Johan Lange was appointed as Technical Director. Simon Davies was promoted to Academy Director.
"Ange Postecoglou was appointed in June, 2023, along with coaching staff Chris Davies, Mile Jedinak, Rob Burch, Ryan Mason and Matt Wells.

"At the end of this financial year we signed James Maddison (who has also been appointed Vice Captain alongside Cristian Romero) and Guglielmo Vicario. Outside of the period we signed Manor Solomon, Ashley Phillips, Micky van de Ven, Alejo Veliz and Brennan Johnson, as well as making permanent the loan signings of Pedro Porro and Dejan Kulusevski. In January, 2024, we welcomed Timo Werner (on loan from RB Leipzig) and Radu Dragusin, with Lucas Bergvall set to join us in the summer. Luka Vuskovic was also signed and will join the Club in 2025.

"We recently said goodbye to several important people in the history of the Club. Notably, our record goal scorer Harry Kane transferred to FC Bayern before the start of the 2023/24 season. A product of our Academy system, Harry went on to become one of the greatest players ever to wear our colours. He was an outstanding role model both on and off the pitch during his 19 years with us. He is held in great affection and we wish him every success with his new club.

​

"We also said goodbye to our long-serving Club Captain Hugo Lloris, who has recently signed for Los Angeles FC. Hugo played for us for over a decade and was our captain for most of those years. He was a popular figure amongst fans and players alike, and we wish him success in the MLS. Lucas Moura, who will forever be remembered for his Champions League hat-trick versus Ajax in 2019, left us in June for his homeland, signing for Sao Paulo.

"Eric Dier transferred to FC Bayern after nine-and-a-half years. He joins Harry as a great contributor to our Club both on and off the pitch and we are delighted to be hosting their new club, FC Bayern, for a pre-season friendly at the stadium (10 August, 2024). It will be an opportunity for fans to thank them and bid them farewell. Given these transfers happened outside of the reporting period, they are not reflected in the financial results.

"I was immensely proud that Heung-Min Son was appointed Club Captain. Sonny has been at Spurs since the start of the 2015 season and has been a great ambassador for the Club, and is the embodiment of an exemplary Spurs player.
"The 2023/24 season, the first under Ange, was always going to be one of building for the future. We have seen progress with the return of exciting, attacking football, even when faced with significant player injuries. We continue to challenge for the highest possible place finish with eight games still to play and hope to bring European football to our home stadium again."
Levy also spoke about the changes in the women's team with Rehanne Skinner departing and Robert Vilahamn taking over, along with the arrival of striker Beth England.

The chairman also spoke about the successes around the Tottenham Hotspur Stadium and its very activities in the past financial year.

"We are increasingly becoming a hugely popular destination, not just for our football on the pitch, but also through hosting and partnering with events such as the NFL, boxing, rugby and music concerts. We are immensely proud that last summer, Beyonce’s five-night-run on our stage was the highest-grossing concert ever staged by a female artist at the time. We also hosted the Red Hot Chili Peppers and Wizkid," he said.

"In February, 2023, with the support and vision of Stefano Domenicali, President and CEO of Formula One Group, we announced a 15-year partnership with F1 and in February, 2024, opened the doors to F1 Drive-London – the first F1 branded electric karting experience in the world, housed under our South Stand.

"In September, 2023, we announced the expansion of our partnership with the NFL through to the 2029-2030 NFL Season. As part of the agreement, Tottenham Hotspur Stadium was given official status as the Home of the NFL in the UK. A particular thank you to the NFL Commissioner, Roger Goodell, for his continued support.
"It was also a proud moment when Tottenham Hotspur Stadium was chosen – the only London club stadium – as a host venue for Euro 2028. I hope to see many of our own players playing here during the tournament, as well as welcoming even more visitors to N17.

"Planning permission has been granted for a 180-room hotel, with approximately 50 private apartments, at the southern end of the stadium campus. Not only will this assist the regeneration of the local area with significant employment opportunities, it will also support our Conference and Events business, major events and be a great addition to the whole match and event day experience.

"All of the activities at the stadium are designed to create diversified sources of revenue which can then be invested in our principal core activity, football."

Levy also touched upon the club's work in the community as well as the creation of the Fan Advisory board before looking forward to what is to come at the club and that includes the prospect of talks with prospective investors.
"The club remains fully compliant with the Premier League Profit and Sustainability Rules and is supportive of the enhancement of PSR to ensure the PL remains competitive and sustainable," he said. "We have operated on a financially sustainable basis and can now optimise the true value of key assets, the unrivalled facilities at our multi-use stadium and our training campus which now includes our recently opened ‘Club House’ media centre. Hosting XR stage technology, this is already enhancing the level and quality of our content for fans and will provide additional revenue opportunities.
"We expect commercial revenues to rise from third-party events, although this will not compensate for the lack of European football this season. 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.

"We are hugely appreciative of the long-term support of our principal partners, AIA and Nike, along with all our other sponsors and partners. The focus of our commercial operation is also to increase our income from additional sponsorship deals, a key area of future revenue growth and we have reorganised the commercial team to support this.
"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 £600million in our Men’s and Women’s First Team squads. 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."
He added: "We are immensely grateful to all our colleagues who manage a busy fixture schedule and embrace the new diversified activities at our stadium. It has been both a challenging yet exciting time.
"Whilst we are mindful that we are still in the process of rebuilding on the pitch with both our Men’s and our Women’s teams, we should all take the time to enjoy the excitement of matchdays and the spirit of all involved, alongside a commitment to excellence in everything we do. Credit must be given to our Head Coaches, Ange and Robert. Our thanks go to all of our fans, partners and colleagues for their support, loyalty and passion."

 

[southlondonyiddo]

Don’t sell a stake in the club, sell the club

Never spent a penny of their own money trying to win something

****s

 

[SirHarryHotspur]

Obviously no plans to sell up , contrary to some supposedly inside info some have been spreading around about a takeover.

 

[southlondonyiddo]

• Our net debt at 30 June was £677.4m (2022: £626.1m) So our debt has gone up by 51m!!!

 

[Col_M]

That Ice Rink isn't going to build itself!

 

[southlondonyiddo]

That Ice Rink isn't going to build itself!

and still no cheese room

It’s a dithgrace

 

[Gassin's finest]

Don’t sell a stake in the club, sell the club

Never spent a penny of their own money trying to win something

****s

People don't become billionaires by spending their own money...

 

[Gingernut]

Obviously no plans to sell up , contrary to some supposedly inside info some have been spreading around about a takeover.

People pass on what they know. Don't add a slant to your post to suggest these posters talk rubbish

 

[southlondonyiddo]

People don't become billionaires by spending their own money...

How about once they’ve become a billionaire?

Joe can’t take it with him!!

 

[yiddopaul]

Don’t sell a stake in the club, sell the club

Never spent a penny of their own money trying to win something

****s

Be very careful what you wish for. At the very least, we are probably the best run club in world football. And a chairman that's is actually a fan and genuinely wants the best for the club. Highly unlikely we will get another chairman with those credentials. We are up there as one of the biggest spenders in the Prem. People are upset because we're not getting in debt doing so, thinks it shows lack of ambition.

 

[TonyK]

Hopefully finding an investor won’t take as long as finding a stadium naming rights sponsor!

 

[Neon_Knight_]

• Our net debt at 30 June was £677.4m (2022: £626.1m) So our debt has gone up by 51m!!!

'Net debt' and 'debt' are not the same thing.

'Debt' is total liabilities (i.e. loans & outstanding/overdue payments).
This is likely to remain relatively stable for now and hasn't gone up by £51m. The stadium debt was converted into bonds that don't mature until circa 2040. The bonds have to be serviced (interest paid), but we're not actively paying off the balance.

'Net debt' factors in the value of our assets.
Our capital assets (stadium, training ground, hotel buildings etc.) are depreciating in value each year. Unless we were intending to sell off these assets (not the case), this doesn't effect our spending power or cashflow.
We presumably have the highest value capital assets of any PL club, so will also have the highest capital depreciation. In this thread, it has been suggested that this depreciation is £72m per year. This means that our finances would have improved by £21m without this depreciation, so our annual financial reports will be looking better (to the tune of £71m) once these high value assets have fully depreciated - but we'll be continuing to enjoy the additional revenue (and other benefits) that these assets incur. As per our previous situation with WHL, most PL clubs don't have the depreciation of a shiny new stadium to account for.

 

[kursaal]

More jam tomorrow.

 

[Kirito]

Be very careful what you wish for. At the very least, we are probably the best run club in world football. And a chairman that's is actually a fan and genuinely wants the best for the club. Highly unlikely we will get another chairman with those credentials. We are up there as one of the biggest spenders in the Prem. People are upset because we're not getting in debt doing so, thinks it shows lack of ambition.

Levy and Lewis may not be the best people in the world but there are far worse people out there. If we go down the Man City/Newcastle route then football is done for me.

 

[Locotoro]

How about once they’ve become a billionaire?

Joe can’t take it with him!!

You never heard of the Egyptian Pharaohs, mate?!?