'I've heard': Finance expert issues verdict on Amanda Staveley ditching Tottenham for Real Madrid
No way. ????
For fans that have grown weary of what they perceive to be an overly commercial focus under Daniel Levy and ENIC, Amanda Staveley’s interest in Tottenham is a ray of hope.
The move to the Tottenham Hotspur Stadium in 2019 has been transformative for Spurs financially but has not yet yielded the silverware that supporters hoped it would.
Tottenham’s commercial and matchday income have trebled since they left White Hart Lane, but the club still have the lowest squad cost to turnover ratio in the Premier League.
From a business perspective, Daniel Levy is a genius. That is the perception among those in the world of football finance say, anyway.
But in terms of his expertise in giving Ange Postecoglou and Johan Lange the tools to make Spurs competitive at the top of the Premier League, a sense of stasis in N17 has crept in over recent years.
When it emerged earlier this year that Staveley was interested in investing in Spurs, fans looked longingly at what she achieved and the ambition she had displayed in her short time at Newcastle United.
Granted, that would not have been possible without the capital of the Saudi Public Investment Fund (PIF), but Staveley personally engineered and executed the sovereign wealth fund’s strategy at St James’ Park.
If she and her consortium of investors from the Middle East and US could navigate Levy’s infamous negotiation style, could they bring the convince the 62-year-old to lift the handbrake in North London?
Potentially, but there are many hoops to jump through before any part-takeover can be completed, especially given Levy’s valuation of Spurs of around £3.75bn.
However, updates on Staveley’s interest in Tottenham have been thin on the ground since July and the saturated Premier League M&A market will not have helped accelerate proceedings.
Now, news direct from Real Madrid of all places could throw a spanner in the works.
Real Madrid a better option than Spurs, says Kieran Maguire
Earlier this week, Real Madrid president Florentino Perez did something unprecedented in the club’s 122-year history.
Speaking at the club’s general assembly, the construction billionaire suggested that he was considering changing the club’s ownership structure, which would open the door for private investment.
The 15-time European champions are valued at around £8.5bn and, as Liverpool University football finance lecturer Kieran Maguire explains, would be a major draw for investors.
There is only a limited pool of groups and inviduals with the capital and inclination to invest in a high-end football club.
The presence of Real on the market shifts the dynamic in Levy’s search for a new minority partner.
“I’ve been hearing stories that private equity and football isn’t working as intended, mainly because they don’t understand how the business operates,” says Maguire.
“Real Madrid basically have guaranteed participation in the Champions League, whereas Spurs don’t. So they are much more de-risked than Spurs.
“I admire Spurs and I think they perhaps have a higher upside than Real Madrid.
“But if I was advising someone who wants a high-profile, low-risk investment opportunity, I would go for Real Madrid.
“I’m no fan of Florentino Perez, but I think there is more potential to leverage the international appeal of Real Madrid more.
Who else has been linked with investing in Tottenham?
It has been the industry’s worst kept secret for some time that Spurs are for sale at the right price, whether that be in the form of a full or partial takeover.
Over the years, a number of parties have been linked with a deal to invest.
Qatar Sports Investment, the owners of Paris Saint-Germain, have reportedly engaged Levy about the possibility of a minority deal.
QSI president Nasser Al-Khelaifi is a known ally of Levy’s, but a deal would be difficult to engineer in the context of UEFA’s conflict of interest rules.
The sports imperialists Liberty Media, whose portfolio is worth £15bn, have also been loosely linked with a full takeover. They are now occupied with Formula One and their interest appears to have waned.
Before they turned their attention to Everton, investment group MSP Sports Capital went as far as to conduct thorough due diligence on Spurs with a view to a bid.
With Everton set to be taken over by Dan Friedkin, could the New York-headquartered firm return to the table?
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