Tottenham Hotspur is receiving a cash injection of $187 million from its majority shareholder to invest in the Premier League club — both on and off the pitch.
ENIC Sports, a British investment firm, purchased its 85.6% controlling stake in Tottenham in 2001 from politician and entrepreneur Alan Sugar for an undisclosed amount.
ENIC’s latest investment will be partly allocated toward the player transfer market.
It will be made via the issue of convertible A shares and accompanying warrants.
With the investment, ENIC’s stake could increase to about 87.5%.
The injection of fresh capital comes after Tottenham posted $106.9 million in pre-tax losses for the fiscal year ending June 30, 2021.
The club generated $456 million in revenue during the same period, down more than 10% compared to the fiscal year prior.
The heavy losses were the result of a lack of fans at matches due to the global pandemic.
Tottenham generated only $2.5 million in matchday revenue for the fiscal year ending June 30, 2021, as only two matches were played with live fans at a limited capacity.
Tottenham Hotspur is reportedly advancing discussions for a roughly $655.8 million naming rights deal for the $1.6 billion stadium it built in 2019. The club is reportedly holding out for a deal worth $32.8 million per year for at least 10 years.