When Daniel Levy and ENIC bought into Tottenham in 2001, the world transfer record was just over £45m – around half of Spurs’ value at the time. 25 years later, Levy thinks his club is worth £3.75bn.
It is an extraordinary markup. At the elite end of the football finance ecosystem, no club has grown as fast as Tottenham. As the all-seeing eye in N17, Daniel Levy is directly to thank for that.
The chairman and co-owner had the commercial ambition and vision to build the Tottenham Hotspur Stadium, widely seen as the best in the world.
A growing bloc of supporters are arguing that Levy’s ambition is misplaced. His business focus, they believe, has clouded his judgement when it comes to the primary aim of a club: to win.
To those fans, the club has sold its soul to host Beyonce and the NFL, squeeze more income from sponsors, and build the brand in South Korea, the United States and beyond.
And with Spurs 12th in the Premier League as Ange Postecoglou prepares to take them to Ipswich at the weekend, the ‘Levy out’ contingent will be in full voice once again at Portman Road.
It probably won’t have escaped their notice that, in recent weeks, the mood music around a potential equity sale of Tottenham is growing louder.
Plenty of groups and individuals – MSP Sports Capital, Todd Boehly, and Liberty Media – have been linked with buying into the club in the past, albeit loosely.
But this time feels different.
Qatari investors are, reportedly, exploring Spurs, either with a view to a full takeover or a phased minority investment geared towards an eventual majority deal.
It is said that the Qatari consortium is made up of private investors. It is not whether Amanda Staveley, who has been linked with brokering a deal, is involved.
Any deal would need the blessing of the trust which controls Joe Lewis’s stake in ENIC.
Lewis himself is no longer formally affiliated with the club following his conviction for insider trading in a Manhattan court in 2023.
To discuss the mechanics of a would-be deal with a Qatari consortium, TBR Football spoke exclusively to Liverpool University football finance lecturer Kieran Maguire, who is well connected in the industry.
“Daniel Levy doesn’t want to give up his position,” said Maguire, analysing a potential situation wherein Levy remains in site as part of a phased takeover.
Levy was a Tottenham season ticket holder before he became involved with the club and the general consensus is that it would be hard to dislodge him while his legacy is at stake.
For that to change, the North Londoners would probably need to win a significant piece of silverware.
“If we take a look at some other deals, Steve Parish is first and foremost a Crystal Palace fan and, even though he only owns 10 per cent, he is the chairman and wants to be involved in operational decision making with a minority stake. This could be an element of pragmatism from potential Qatari owners.
“Levy doesn’t need the money from the sale of shares because he does extremely well out of his Spurs salary, so if he is going to play hard-ball, which is his default position, we now have hard ball squared.
“That is enough to put off many potential investors in Spurs even though it is an incredibly attractive business proposition.
“A staggered approach has some merits. It will also allow new owners to become familiar with the unique nature of the football industry and, more specifically, the Premier League while Levy remains the face of the club.
“That might work or it might not. We have seen at Man United where there is a potential staggered arrangement with Sir Jim Ratcliffe.
“He has the rights to match any offer for the Glazers’ shares and he has operational control of the club.
“But that doesn’t always lead to a smooth operational control. You could see how that might be the case at Spurs in a post-ENIC environment.”
Qatar might be Daniel Levy and ENIC’s only option
Given the £3.75bn appraisal of the club by ENIC, a 10 per cent deal – which is believed to be the minimum starting point – would cost any new equity partner at least £3.75bn.
They may even pay a premium on top of that. There are only so many groups and individuals for whom a deal of that magnitude makes sense.
Minority investment is sometimes sardonically called the ‘most expensive season ticket in football’ because it doesn’t guarantee any operational control.
Spurs don’t pay a dividend, so it would be hard to find a buyer who, in turn, would be confident of one day flipping their stake for a profit.
The timeframe for that kind of return is very, very long. Private equity titans and sovereign wealth are probably the only players with the vision to see that kind of investment as worthwhile.
What’s more, there are a number of clubs looking for minority investment at present. In the Premier League, you have Wolves, Bournemouth, Brentford and Crystal Palace.
TBR Football understands that Wolves are seen as a very attractive, cost-efficient option. Meanwhile, the likes of Reading and Sheffield Wednesday are available and have speedier capital appreciation potential.
At the other end of the spectrum, there is every chance Manchester United will be seeking a new equity partner in the not-too-distant future in order to fund upgrades to Old Trafford.
There are so many variables and, as Maguire highlights, Levy isn’t going to roll over unless the price is right, so Spurs fans shouldn’t expect white smoke and Qatari petrodollars any time soon.