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News from US could impact Tottenham takeover as £2.6bn deal now possible
The latest financial developments in the United States could have a material impact on future investment in Tottenham.
Chairman and co-owner Daniel Le🌳vy revealed that he is looking for fresh investment in the club in the preamble to Spurs’ accounts for the 2022-23 campaigꩲn.
Four different grou♛ps have been linked with either a full or partial takeover, with Spurs not having clarified exactly what scale of investment they are seeking.
Among those investors are US private equity companies, such as MSP Sports Capi🎐tal.
Their interest inꦜ a fuꦜll takeover is believed to have waned,꧂ but the private equity sector’s broader interest in Premie🍬r League clubs remains high.
However, market forces stateside might mean that a takeover from a US p☂rivate equity source is now less likely.
Rising interest rates could shrink Spurs investment pool
Private equity companies often use loans from commercial lenders to finance acquisitions – tak𓂃e 777 Partner’s failed takeover of Ev⛎erton, for example.
In the US, with interest rates set by the Feder♍al Reserve, private equity activity slows down when the cost of borrowing rises.
And as reported by the , Federal Reserve official Michelle Bowman has forecasted that the institut🌌ion may be forced to raise interest rates in the near future.
This would lead to greater problems with debt financiꦬng for private equity firms, which could in turn reduce the pool of investors capable of engineering a Tottenham takeoveꦚr.
And while there are firms for whom a Spurs takeover would 🧜be within reach even with higher interest rates, the overall effect of a smaller pool would reduce the enterprise value of the club.
That might make Levy and company less inclinಞed to sell.
ENIC are in no hurry to sell any equit🧔y and will wait for the opportune moment t☂o ensure a maximum return.
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Spurs valued at £2.6bn
According to a range of analytical approaches, Spurs are worth somewhere around the £2.6bn mark.
Huge investment in the stadium and other facili♓ties such as a huge new on-site hotel have contributed to this value.
Their operating ꧒income is strong, as is their E꧟BITDA (earnings before inte🔴rest, tax, depreciation and amortisation), 😼which is a key way of appraising clubs.