Club announcement - Tottenham Hotspur Limited agrees a £150m capital increase
Tue 24 May 2022, 15:06|Tottenham Hotspur
Tottenham, London: Tottenham Hotspur Limited (the “Club” or “Spurs”) has, today, Tuesday 24 May 2022, agreed a capital increase of up to £150m from majority shareholder, ENIC Sports Inc (“ENIC”), via the issue of convertible A Shares and accompanying warrants.
The equity injection provides the Premier League Club with greater financial flexibility and the ability to further invest on and off the pitch.
The investment represents permanent capital, with no ongoing interest cost to the Club, and which may be drawn in tranches until the end of the year. The Club’s independent directors have benefited from its majority shareholder’s ability to invest directly, swiftly and without the extensive due diligence and documentation involved in third party funding.
Under the agreed structure the A Shares can be converted into ordinary shares. The number of ordinary shares granted to ENIC as a result of the capital increase will vary depending on when the A Ordinary Shares are converted, when the warrants are exercised and valuations at the time. If drawn in full, and based on assumptions regarding the above, ENIC’s ownership of the Club could see an increase from its current level of 85.6% to circa 87.5% on conversion. Any dilutive impact is dependent on the number of shares granted and will be shared by all shareholders proportionately and principally by ENIC, the majority shareholder.
ENIC acquired a controlling stake in the Club in 2001. The Club’s strategy has been to deliver world-class facilities and increased, diversified revenues to support on pitch performance whilst at the same time maintaining long-term financial stability.
Daniel Levy, Chairman, Tottenham Hotspur said: “The delivery of a world-class home was always a key building block in driving diversified revenues to enable us to invest in the teams and support our ambitions to be consistently competing at the highest levels of European football. Additional capital from ENIC will now enable further investment in the Club at an important time.’’
Jonathan Turner, Independent Non-Executive Director, Tottenham Hotspur said: “We are pleased to welcome this investment which demonstrates the unequivocal support and commitment of our majority shareholder, ENIC. It is a timely injection of funds to ensure we can continue to grow the Club we all love and underlines the Board’s continued ambitions for success.”
Significant investments have been made in the Training Centre, Player Accommodation and multi-use stadium, creating state-of-the art facilities to support the Club’s sporting ambitions. The new Tottenham Hotspur Stadium, with a capacity of close to 63,000 spectators, was completed in 2019. It has set new standards for the world’s best sporting arenas whilst also having a positive impact on the local economy. It continues to act as a driving force in the continued regeneration of North Tottenham, London and the surrounding area.
The Club has increased revenues from both football and non-football related activities, all for reinvestment in its football teams. In recent months the stadium has hosted NFL, Boxing, English Premiership Rugby Union and this summer will see concerts including international music artists Lady Gaga and Guns N’ Roses. The Club also has a growing number of visitor attractions such as the SkyWalk, Tours and OOF Art Gallery, along with Conferences & Events.
Rothschild & Co advised the independent directors of the Club.