Football Finance expert Stefan Borson believes that Tottenham Hotspur will find it difficult to sell a minority stake in the club as Daniel Levy has priced the club too high.
A little over a week ago, The Times reported that Spurs chairman Daniel Levy is in talks to sell a minority stake in a deal that could value the club at up to £3.75 billion, including the current debt.
The report explained that the Lilywhites were looking to sell around a 10 per cent stake in the club and were being advised on the matter by bankers from Rothschild.
Over the past week or so, some experts, including Former Everton and Aston Villa CEO Keith Wyness, have claimed that a minority sale of Spurs might not be far away (Football Insider).
Wyness suggested that Levy could look to push through a sale soon so that Tottenham can use the cash injection to strengthen their first team significantly.
However, Borson believes that a deal is unlikely unless Levy lowers his valuation of the club.
When asked about the rumours, he told Football Insider: “I think it would be very difficult to sell a minority stake. You are talking about a club that’s not really won anything for quite some time.
“It has done really well in the way that they’ve managed their cost base. Clearly, they now have a fantastic stadium, it’s London-based and has some potential upsides in terms of naming rights and things like that.
“But the idea that Daniel Levy and his commercial team have not tried very extensively to get naming rights for that stadium, you can imagine that they have tried very hard. Therefore, you can also envisage that there aren’t lots of people wishing to pay significant amounts for that naming rights.
“It’s difficult to justify a valuation anywhere near £3.75billion for Spurs, particularly for a minority stake of that nature. That’s based on as much as anything that Chelsea went for. I think the Chelsea price was probably too high. I think at £3.75billion, Tottenham definitely is.”
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Only time will tell if Levy’s valuation is too high or whether investors are willing to meet the price.
Either way, this sort of deal almost always drags on for many months, given the huge fees involved.
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