What next for Tottenham Hotspur after Daniel Levy departs?
When it finally came, Daniel Levy’s departure as chair of Tottenham Hotspur took everyone by surprise – even those within the club.
On Thursday, just before 6pm, Spurs announced that the man tasked with running the club for the Lewis family for almost a quarter of a century was stepping down.
Before the evening was out widespread reports emerged that the Lewis family had forced the move, which followed a summer of boardroom upheaval in N17.
First, former Arsenal CEO Vinai Venkatesham was hired in the same role, then Levy’s right-hand woman, Donna-Maria Cullen, left after three decades at the club.
Soon after, chief football officer Scott Munn was shown the door, while Levy’s exit has seen former Citibank boss and long-time Lewis ally Peter Charrington appointed non-executive chairman.
It has led to a growing feeling across the game that Tottenham are being prepared for investment and perhaps even a full takeover.
Why Spurs are attractive to buyers
On paper, the club is already an attractive asset – in large part due to the money-making potential of their stadium, which also hosts NFL games and high-profile concerts.
That has helped to make Spurs the ninth richest club in the world, according to Deloitte’s most recent Football Money League, which ranks teams by revenue.
On top of that, naming rights to the Tottenham Hotspur Stadium remain unexploited, not least because Levy was unable to achieve the sponsorship value he had hoped for.
They are also basking in the glow of a first major trophy for 17 years, having won the Europa League last season, and have a highly-rated manager in Thomas Frank.
The club are valued in the region of £3bn to £3.5bn, although given the scarcity of Premier League teams and rising valuations across sport, could command more.
Why Levy exit makes sale easier
Levy’s departure makes a sale of some kind easier – and perhaps necessary, given that he effectively owns a significant chunk of Spurs.
He has just shy of 30 per cent of equity in Enic, the Lewis company which controls Tottenham through its 86 per cent shareholding.
Given that he has effectively been pushed out of the club he has shaped for 24 years, it is hard to see Levy hanging onto involvement – lifelong Spurs fan or not.
His absence may also increase the appeal of an investment in Tottenham; his famously iron will combined with his equity would have made him a potentially tricky partner.
Now Spurs have a more conventional corporate structure, with CEO Venkatesham running day-to-day matters and reporting to non-exec chair Charrington.
Who could buy Tottenham?
Several suitors have shown interest in buying into Tottenham in recent years, from existing football owners to big players in the sport investment space.
Qatar Sports Investments, owners of European champions Paris Saint-Germain, held talks with Levy about buying a minority stake in Spurs more than two years ago.
QSI baulked at the price tag, however, and dropped its interest. It is not expected to revive it, preferring to pursue a deal to buy Malaga in Spain’s second division.
Former Newcastle United minority owner Amanda Staveley has also been linked with assembling an offer for Tottenham since leaving St James’ Park last year.
The US, however, is seen as the most likely source of proposals, given the sheer volume of private capital that has flowed across the Atlantic in the last few years.
Jahm Najafi of MSP Sports Capital was reported to have offered a deal of £3.1bn earlier this year, in conjunction with investors from the Middle East.
MSP this week cashed out of a minority position in Formula 1 team McLaren, which saw it more than treble the value of its investment to more than £560m.