"It is clear to us that increasing the capacity of the Club's stadium is a key factor in the continued development and success of the Club and will involve the Company in considerable additional capital expenditure. Given this requirement, we believe that the AIM listing restricts our ability to secure funding for its future development. We are ambitious for the club and have always taken the steps that we believe to be in its best interests."
Under AIM rules, the club needs the support of 75% of shareholders to delist. With ENIC owning 82% of the shares, Tottenham being a private company in the new year is all but a foregone conclusion. But what does this mean?The clubs plans to de-list from AIM as part of its ambition to build stadium and team capable of challenging at the highest level. It pointed out increased capacity is necessary to keep up with domestic competition in generating additional revenue, which will also ensure investment made in the first team squad over the past few years can be sustained in future years. The move comes after consultation with potential lenders and investors who suggested the club would have more flexibility if privately owned. Which would suggest Levy has said investors lined up ready to invest in us.
We need to raise £300-£350m to build the new stadium at Northumberland Park, much of which will come from borrowing. Levy said this would be easier if we were privately owned and will give more freedom to raise cash by offering a big stake in the club. Naming rights, potentially worth around £150 million will be a crucial part of the funding package.
Profits & Loss in detail:
- Tottenham shares closed at 46p on November 15th, giving us a market capitalisation (in English, our value) of around £100 Million ($158 million).
- Revenues at record level of £163.5m (2010: £119.8m) largely as a result of the Club's participation in the Uefa Champions League, reaching the knock-out quarter-final stages
- FAPL gate receipts increased marginally to £20.4m (2010: £20.1m) on capacity home attendances
- Uefa Champions League gate receipts and prize money was £37.1m (2010: £nil)
- Media and broadcasting revenues increased 5 per cent to £54.0m (2010: £51.5m)
- Sponsorship and corporate hospitality income increased by 24 per cent to £31.8m (2010: £25.8m) with Autonomy as new FAPL shirt sponsor and Investec as new shirt sponsor for Cup competitions
- Merchandising income rose by 23% to £9.6m (2010: £7.8m) aided by the UEFA Champions League campaign and a strong product mix
- Operating expenses increased 35 per cent to £131.2m (2010: £97.1m), due in the main to the costs associated with a large squad size playing in both domestic and European competitions and a total of 53 games played (2010: 50)
- Operating profit before football trading and amortisation, which is one of the key performance indicators of how the Club is performing as a cash-generating business, increased by 42 per cent to £32.3m (2010: £22.7m).
- Significant investments over the past 12 months in the Northumberland Development Project and the new Training Centre have increased the carrying value of property, plant and equipment from £123.6m to £150.3m.
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