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Even though the Lewis family have insisted that they have no interest in selling Tottenham, football finance expert, Adam Williams, sees plenty of evidence that the club are looking for minority investment.
ENIC have confirmed that they rejected two approaches to buy a stake in Tottenham, refuting suggestions that they have any interest in selling the club.
According to reports, the Lewis family has set a deadline of October 5 for interested groups to declare whether or not they intend to bid for the club.
Meanwhile, reports continue to suggest that the Lewis family want to make big investments into Tottenham to help the club achieve on-field success.
Could Daniel Levy sell his stake in Tottenham?
Football finance expert, Adam Williams, has now discussed the possibility of whether Levy could sell his stake after his exit from his role as the club’s chairman.
The 63-year-old owns a 29 per cent stake in ENIC, and much of his wealth is thus tied to Tottenham, and Williams points out that it is a matter of public record that he has been speaking to potential investors over recent years.
The finance expert 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.
“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.
“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 £3.75 billion valuation deemed too high
Williams also suggested that Spurs will struggle to find parties willing to meet their reported £3.75 billion valuation of the club.
He also questioned the truth behind assertions that the Lewis family are expected to inject equity into the club, given that Tottenham have just reportedly borrowed £90m from Macquarie Group Ltd.
Williams added: “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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