Spurs pursue selling stake in club to compete with rivals
Tottenham Hotspur chairman Daniel Levy has revealed that he is looking into selling a stake in the club. The businessman released a statement on Wednesday claiming to already be in discussions with “prospective investors” over a potential deal. Levy has been in place at the team since 2001, which makes him the longest-serving chairman in the entire Premier League.
The announcement comes as the north London club recorded $109 million in post-tax losses in the latest financial year. While Spurs also posted a turnover of $691 million during the timeframe, expenditures were essentially up across the board. The team claims that operating expenses were up 21%, their player wage bill rose 20%, and they spent serious money on player transfers in the 2022/23 financial year.
“To capitalize 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,” stated Levy.
“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.”
Tottenham says selling a stake does not come from financial woes
Despite the massive losses, Levy claimed that Spurs are “fully compliant” with profit and sustainability rules (PSR) currently in place in the Premier League. English top-flight laws state that clubs cannot record losses over $133 over three seasons. The north London team previously posted losses of $63 million during the 2021/22 season.
Spurs have attempted to offset these losses by finding creative ways to make money. One of these avenues is to rent out Tottenham Hotspur Stadium. The $1.5 billion state-of-the-art arena has hosted a bunch of non-soccer events in recent months. This includes multiple NFL games, big boxing matches, as well as a series of concerts. Beyonce, in particular, previously played five nights at the stadium in May of 2023. The shows attracted nearly 240,000 total people to the arena.
The Premier League side has also increased ticket prices for their matches as well. Spurs recently revealed that seats inside the stadium will rise 6% compared to the previous prices. Interestingly enough, the move came as Levy rewarded himself with a $3.7 million bonus. Needless to say, many Spurs fans were not exactly thrilled with the revelation.
Club’s long trophy drought continues despite losses
Despite the aforementioned recorded losses at Spurs, the club’s spending has not exactly translated to on-field success. The north London side finished eighth in the Premier League standings during the 2022/23 season and completed their 15th consecutive campaign without a trophy. Spurs currently sit fifth in the table and will need to qualify for the lucrative Champions League to boost financial figures.
Levy has been linked with potentially selling at least a piece of the club for months now. The businessman, however, stated back in the fall that he has “no real interest” in completely leaving Spurs. This would indicate that he is only willing to sell a part of the team. Investment company ENIC controls just over 86% of the club at the moment. Levy is the Spurs chairman due to holding a 30% stake in this company.
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