Spurs new investment

[spurs8]

Spurs seeking new investors. DL says current shareholders would need to approve. ENIC 86.5%, others 13.5%. ENIC did I think try to buy the other 13.5%, without success. The share issue a year or two ago was partly set at the figure it was to keep ENIC below 90%, a threshold where they could buy out minority shares. And one reason I think perhaps THS was largely financed by bank loans rather than a share issue was to keep ENIC below 90%.

So if a new investor simply buys some ENIC shares, no real change, no cash coming into the club. To get cash in needs a new share issue funded by a new investor. But then ENIC plus new investor would own more than 90% meaning minority shareholders could at some stage be bought out. So the minority shareholders are in quite a key position regarding the future of Spurs.

Another way to bring in new investment, eg for the hotel and maybe apartments, would be to lease the land to developers who would then fund the buildings themselves.

I think another issue with a Spurs sale could be the valuation, and maybe how much ENIC would put on a figure valuing a possible London nfl franchise.

Not straightforward by any means but suspect something may happen in the next year or two.

JL, the former owner, is getting older and facing legal problems, so that may be a factor too. The family trust seems to me a temporary expedient, but who knows.

 

[Raziel]

So, the conversation was started in ENIC thread, quick comments

1. JL is not involved, his "ownership" was transferred to a group/trust holding
2. Levy is chairman, any sale of even partial ownership has to be approved by stakeholders/board, nothing statement really
3. Spurs is private, selling shares is money/cash coming into club. These kind of partial sales usually have a clause for what the club will do with cash (e.g. is it for first team strengthening?)
4. Spurs valuation has always been a problem and why buyers go elsewhere, we are almost the finished article, that comes at a price
5. I think things like the hotel/apartments the club already has planned, the challenge is we need money to buy quality to translate into better on field results which will in turn generate revenue and brand growth.

I suspect Levy knows we are back at one of those pivotal moments, one of those moments where we can break the mold and really try to establish ourselves as an elite club

Football infrastructure investments are done, we are generating our best revenue, first 11 is good, new manager and brand of football is good, good change of CL next season, at least two of traditional competitors (United & Chelsea) struggling, Liverpool going to have to manage Klopp exit, lots of opportunity to take advantage of the moment without the issues of last time we were this well placed (stadium build)

 

[Bedfordspurs]

So, the conversation was started in ENIC thread, quick comments

1. JL is not involved, his "ownership" was transferred to a group/trust holding
2. Levy is chairman, any sale of even partial ownership has to be approved by stakeholders/board, nothing statement really
3. Spurs is private, selling shares is money/cash coming into club. These kind of partial sales usually have a clause for what the club will do with cash (e.g. is it for first team strengthening?)
4. Spurs valuation has always been a problem and why buyers go elsewhere, we are almost the finished article, that comes at a price
5. I think things like the hotel/apartments the club already has planned, the challenge is we need money to buy quality to translate into better on field results which will in turn generate revenue and brand growth.

I suspect Levy knows we are back at one of those pivotal moments, one of those moments where we can break the mold and really try to establish ourselves as an elite club

Football infrastructure investments are done, we are generating our best revenue, first 11 is good, new manager and brand of football is good, good change of CL next season, at least two of traditional competitors (United & Chelsea) struggling, Liverpool going to have to manage Klopp exit, lots of opportunity to take advantage of the moment without the issues of last time we were this well placed (stadium build)

We can add another £100m to the revenue with the right additional sponsorships and better European results

 

[Raziel]

We can add another £100m to the revenue with the right additional sponsorships and better European results

Yes, but so can our competitors, which is the piece most people/fans miss

- We not only have to improve to compete with the top 3 sides now, we have to improve more that they do (as well as the 3 behind)

We have a moment where PSR/FFP may give us a little edge, if we can leverage that, it could make that above statement more real

 

[Bedfordspurs]

Yes, but so can our competitors, which is the piece most people/fans miss

- We not only have to improve to compete with the top 3 sides now, we have to improve more that they do (as well as the 3 behind)

We have a moment where PSR/FFP may not

give us a little edge, if we can leverage that, it could make that above statement more real

I don’t think they can all do it at the same level
I think city have maxed out their fake deals and the stadium is what it is
United… they will eventually lose sponsorship income because their brick but that will always flip season to season
Arsenal can and we will see that this year because of Europe
Pool have the additional seats that they will fill and next year will have CL money like we will (imo)

 

[spurs8]

So, the conversation was started in ENIC thread, quick comments

1. JL is not involved, his "ownership" was transferred to a group/trust holding
2. Levy is chairman, any sale of even partial ownership has to be approved by stakeholders/board, nothing statement really
3. Spurs is private, selling shares is money/cash coming into club. These kind of partial sales usually have a clause for what the club will do with cash (e.g. is it for first team strengthening?)
4. Spurs valuation has always been a problem and why buyers go elsewhere, we are almost the finished article, that comes at a price
5. I think things like the hotel/apartments the club already has planned, the challenge is we need money to buy quality to translate into better on field results which will in turn generate revenue and brand growth.

I suspect Levy knows we are back at one of those pivotal moments, one of those moments where we can break the mold and really try to establish ourselves as an elite club

Football infrastructure investments are done, we are generating our best revenue, first 11 is good, new manager and brand of football is good, good change of CL next season, at least two of traditional competitors (United & Chelsea) struggling, Liverpool going to have to manage Klopp exit, lots of opportunity to take advantage of the moment without the issues of last time we were this well placed (stadium build)

Thanks for this. Agree largely.
your numbers,
1. said JL was former owner.
2. yes a nothing statement in one way, so why did he say it, think he has those minority shareholders at the back of his mind...
3. new money coming in takes ENIC + new money to over 90%, could be significant.
4. valuation, agree, but nfl could complicate.
5. you may be right.

ps, like your final para...

 

[Finney Is Back]

I don’t think they can all do it at the same level
I think city have maxed out their fake deals and the stadium is what it is
United… they will eventually lose sponsorship income because their brick but that will always flip season to season
Arsenal can and we will see that this year because of Europe
Pool have the additional seats that they will fill and next year will have CL money like we will (imo)

Emirates Marketing Project have a bunch of ‘sister’ clubs operating outside of FFP, that they will use to buy young, talented players and sell to Emirates Marketing Project at discount rates.

 

[johnola]

It isn’t about Enic wanting full control as far as I see it. Yes there is a mechanism if the other shareholders don’t wish to invest and that then is perfectly fair.

If more shares are created then the existing owners, Enic and the minority cohort will be offered to buy up their rights to the new issue.

The new investor will then buy up any new shares not taken by right, irrespective of whom didn’t take up the new issue - you would not expect Enic to given the rationale- but a lot of individual small shareholders might choose to do so- probably not though.

This has happened to me with a blue chip plc let alone Spurs.

I don’t know about the majority rights at 90% or beyond but there will be a new minority owner so enic will be further away from full control. Yes they could sell to enic but that is true now anyway.

It makes more sense if this is a genuine fund raising opportunity.

 

[spurs8]

It isn’t about Enic wanting full control as far as I see it. Yes there is a mechanism if the other shareholders don’t wish to invest and that then is perfectly fair.

If more shares are created then the existing owners, Enic and the minority cohort will be offered to buy up their rights to the new issue.

The new investor will then buy up any new shares not taken by right, irrespective of whom didn’t take up the new issue - you would not expect Enic to given the rationale- but a lot of individual small shareholders might choose to do so- probably not though.

This has happened to me with a blue chip plc let alone Spurs.

I don’t know about the majority rights at 90% or beyond but there will be a new minority owner so enic will be further away from full control. Yes they could sell to enic but that is true now anyway.

It makes more sense if this is a genuine fund raising opportunity.

I suppose a question is this.
The share issue a year or two ago still put ENIC at less than 90% so minority shareholders probably content.
A new share issue would put ENIC plus new investor(s) at above 90% possibly paving the way for a compulsory purchase of minority shares in due course.
Question is - would minority shareholders have to agree in advance to a new share issue and could they refuse.
Seems to me quite important but could be a red herring.
I'm in 'Columbo' mode...

 

[Bedfordspurs]

Emirates Marketing Project have a bunch of ‘sister’ clubs operating outside of FFP, that they will use to buy young, talented players and sell to Emirates Marketing Project at discount rates.

True

 

[Jordinho]

I suppose a question is this.
The share issue a year or two ago still put ENIC at less than 90% so minority shareholders probably content.
A new share issue would put ENIC plus new investor(s) at above 90% possibly paving the way for a compulsory purchase of minority shares in due course.
Question is - would minority shareholders have to agree in advance to a new share issue and could they refuse.
Seems to me quite important but could be a red herring.
I'm in 'Columbo' mode...

If it's a new shareholder, wouldn't they be part of the minority? Also, wouldn't all existing shareholders be allowed to buy some of the new shares?

 

[Lilbaz]

Emirates Marketing Project have a bunch of ‘sister’ clubs operating outside of FFP, that they will use to buy young, talented players and sell to Emirates Marketing Project at discount rates.

The pl i believe have brought in rules to stop that. Think it was because utd offered way more for a player than city. But the club sold him to city. Fuzzy on the details.

 

[ricky2tricky4city]

Emirates Marketing Project have a bunch of ‘sister’ clubs operating outside of FFP, that they will use to buy young, talented players and sell to Emirates Marketing Project at discount rates.

Will that not fall foul of the latest PL agreement?

New Premier League rules to sanction clubs signing inflated sponsorship deals - SportsPro

Latest measures mean Premier League teams face sanctions if they do not ensure sponsorship or transfer deals are of fair market value.

www.sportspromedia.com

Of course, City could be above the law

 

[ricky2tricky4city]

The pl i believe have brought in rules to stop that. Think it was because utd offered way more for a player than city. But the club sold him to city. Fuzzy on the details.

Do they ever not?

 

[Lilbaz]

Do they ever not?

True for the last few years they've been trying their best to "do a leeds".

Hope they succede.

 

[Gutter Boy]

If it's a new shareholder, wouldn't they be part of the minority? Also, wouldn't all existing shareholders be allowed to buy some of the new shares?

IIRC most of the 13% odd shares not owned by ENIC are owned by Stellios (Easy Jet guy) and Michael Ashcroft (Cameron pig fudge book guy)

 

[johnola]

If it's a new shareholder, wouldn't they be part of the minority? Also, wouldn't all existing shareholders be allowed to buy some of the new shares?

yes on both counts and which is why I think Spurs8 is probably misguided. See my post above.

 

[johnola]

If it's a new shareholder, wouldn't they be part of the minority? Also, wouldn't all existing shareholders be allowed to buy some of the new shares?

yes on both counts and which is why I think Spurs8 is probably misguided. See my post above

 

[Bullet]

Emirates Marketing Project have a bunch of ‘sister’ clubs operating outside of FFP, that they will use to buy young, talented players and sell to Emirates Marketing Project at discount rates.

That's a bloody good point.
We might want to set up a chain of clubs across the world, like City Group.
Scott Munn knows all about that model, and we are constantly involved in Asia/USA and coul.d of course do similar in Europe and South America too.

 

[spurs8]

That's a bloody good point.
We might want to set up a chain of clubs across the world, like City Group.
Scott Munn knows all about that model, and we are constantly involved in Asia/USA and coul.d of course do similar in Europe and South America too.

Chelsea seem to have caught a bit of a cold with Strasbourg !