Tottenham announce £150m cash injection into the club by owner – Ahead of transfer window | OneFootball

Tottenham have made a big announcement on Tuesday (24 May 2022) afternoon.

The North London club announcing that their owner (majority shareholder who owns over 85% of the existing shares) has injected £150m into the club.

This cash injection has been made to a back drop of rumours that Tottenham are intending to be more competitive in this summer 2022 transfer window, having finished ahead of Arsenal to grab the final Champions League spot.

As we await Newcastle United’s first move / statement of intent ahead of next season, other Premier League clubs have already announced summer signings. Only hours after the final round of matches were played on Sunday, both Liverpool and Aston Villa announced new players on Monday morning.

It looks like it is set to be a very busy Premier League transfer window. As well as Man City and Liverpool no doubt looking to try and ensure they stay out there ahead of the rest, you have Chelsea with new incoming owners who have already pledged investment, Man Utd with a new manager and the Glazers already stating they are going to back him in the transfer market, Arsenal needing to make key signings surely as well, plus now Tottenham seemingly making it clear that they are going to be splashing the cash.

Tottenham may not have spent the kind of money the likes of Man Utd and Man City have spent in recent years but the claims of Spurs spending next to nothing are a bit exaggerated. The last three seasons they have spent around £319m (figures via Transfermarkt), with around £220m of that being net spend.

As well as Newcastle United, other ambitious Premier League clubs looking to get closer to the self-appointed elite ‘big’ six will also be determined to spend what they can on improving their teams / squads.

Spending money isn’t everything BUT if you aren’t at least competitive to a certain degree in the transfer market, then you have zero chance of making any real sustained progress.

Tottenham official announcement – 24 May 2022:

‘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.