“Billionaire Club Owner Discusses Potential £3.75B Tottenham Takeover and Private Equity Future”

Billionaire Club Owner Discusses Potential £3.75B Tottenham Takeover

When Tottenham confirmed earlier this year that they were seeking investment in the club, it validated long-standing rumors in the sports business world.

In the preamble to the club’s accounts for the 2022-23 financial year, during which Spurs posted a club-record turnover of £550 million, Daniel Levy revealed that he was in talks with potential buyers. However, the Spurs chairman and co-owner did not specify whether the deal would be a full or partial takeover, only that he had enlisted the help of Rothschild bank to find investors.

ENIC’s Valuation and Potential Sale

It has since emerged that the ENIC regime values the club at £3.75 billion and could be willing to sell a 10-15 percent stake, similar to Dynasty Equity’s investment in Liverpool last autumn. This trend reflects a growing interest among U.S.-based private equity firms, which see football clubs as long-term capital appreciation projects.

Spurs, with one of the fastest-growing brands in the United States and East Asia, annual commercial revenues of £228 million, and a world-class stadium, present an attractive investment opportunity. Several U.S. groups have been linked to Spurs in recent months, including MSP Sports Capital and Liberty Media, owners of F1, who have shown interest in a full takeover.

Insights from Ipswich Town Co-owner Brett Johnson

Now, one of the co-owners of a rival Premier League club, Brett Johnson of Ipswich Town, has provided insights into the future of private equity and football investment. Ipswich Town’s recent success can be traced back to April 2021, when a consortium of American investors, led by Johnson and his Gamechanger investment group, purchased the club.

Johnson, with a background in private equity, shared his thoughts on the Business of Sport podcast. He explained that private equity investors often view sports as a long-term investment, much longer than the typical five to seven-year horizon.

Johnson noted, “A lot of these funds like Arctos [investors in Paris Saint-Germain and Liverpool owners FSG] are buying minority stakes. They are in it for the long haul, with value continuing to rise over time. For investors, sports as an asset class is one of the best options.”

The Future of Tottenham Under Private Equity

Given Levy’s apparent reluctance to fully relinquish control of Spurs, a minority investment might be the most viable option. A 10-15 percent stake, akin to Dynasty Equity’s in Liverpool, would likely not drastically alter the club’s operations. However, Amanda Staveley, Newcastle United director and co-owner, has raised £500 million through PCP Capital Partners for a new football investment project. While this sum could secure a 10-15 percent stake in Spurs, it’s difficult to imagine a deal that doesn’t involve Levy ceding some control in exchange for the investment.