Football Finance expert Kieran Maguire has said that despite Chelsea’s bigger global commercial appeal, Tottenham might be valued higher than the West London club due to their stadium’s revenue-generating potential.
The Evening Standard reported this week that while Daniel Levy has had conversations with multiple prospective investors, he and Joe Lewis are undecided over whether they want to listen to offers for the whole club, sell a minority stake or remain in complete control.
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It emerged a couple of weeks ago that Iranian-American businessman, Jahm Najafi, is working with a consortium to prepare a £3.1 billion offer to buy Tottenham (The Financial Times).
Meanwhile, it was reported last month that Qatar Sports Investments, who own Paris Saint-Germain, held conversations with the North London club regarding buying a minority stake (The Athletic).
Journalist Ben Jacobs told GiveMeSport a couple of days ago that Lewis and Levy would want around £1.5bn more than the £2.3bn that Todd Boehly paid to acquire Chelsea last year.
When asked about the relative value of the two London clubs, Maguire has now told Football Insider: “While Spurs are not a bigger club than Chelsea in terms of sporting success, most of Chelsea’s success came through Roman Abramovich preparing to write off losses of £900,000-a-week for 19 years.
“In contrast, Spurs have future-proofed their revenue streams through the move to the new stadium and this will give them a competitive advantage over Chelsea moving forwards.
“They should be able to generate £40-50m matchday revenues in excess of what their rivals produce. If that leads to greater participation in the Champions League then those monies can be increased even further.
“While Spurs are probably behind Chelsea in terms of commercial appeal globally, it does give the club an opportunity to grow and I think this is reflected in the value.
“Anyone taking over Chelsea knew there were significant infrastructure costs attached to Stamford Bridge but any investors looking at purchasing Tottenham are gifted with a new multi-functional stadium.”
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The revenue-generating potential of the Tottenham Hotspur Stadium is bound to increase over the coming years as it becomes more popular as one of the best venues in London for concerts and sporting events. That will certainly be factored into the valuation of the club.
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