Source: The Times

Tottenham Hotspur are being tipped as the next takeover target for private investors, sending shares soaring by 60 per cent in the past four months.

Paul Kemsley, the Tottenham vice-chairman, is believed to be among the prospective buyers and has privately expressed an interest in purchasing the 32.7 per cent share held by Enic, the sports investment company that is the largest stakeholder in the club.

Kemsley, a property developer, is thought to have approached Mike Ashley, the billionaire who owns Sports World, the UK’s largest sports retailer, for help with the funding. The share price closed at 81p yesterday, compared with 51p in late September, valuing the club at £75 million. The price briefly reached 82.42p in December and is generally at its highest level since November 1998, when it rose to 81.43p.

Investors have looked more favourably on football clubs in the past year, encouraged by the boom that is expected to follow the next television contract, which is worth an average of 65 per cent more for top-flight clubs, starting next season. In recent months, Aston Villa and West Ham United have gone into new ownership, Manchester City and Newcastle United were the subject of takeover talks and Liverpool hope to secure a £450 million investment from George Gillett Jr, an American tycoon.

It is possible to acquire a large stake easily in Tottenham because their shares are not diversely held. Sir Alan Sugar, the former chairman, has a 13 per cent stake through Amshold Limited, while Stelios Haji-Ioannou, the founder of easyJet, has a 9 per cent stake through Hodram Inc.

Tottenham have attracted a number of potential investors in recent years, but they have been put off by an excessive valuation of the club by Daniel Levy, the chairman. Levy and Kemsley are involved in a property development company, Rock Investment Holdings, which has a spread of commercial and residential sites around England. Kemsley is also a director of Selhurst Park Limited, which owns the Crystal Palace ground, but denies that he has taken over the mortgage of Loftus Road, Queens Park Rangers’ ground. Kemsley was unavailable for comment yesterday.

Kemsley’s possible backer, Ashley, is ranked No 54 in The Sunday Times Rich List with a fortune estimated at £1 billion. Ashley, 42, recently stepped out of the shadows with the appointment of investment banks to help to launch a £2 billion flotation of his company.

Aside from the sports chain, he owns a host of well-known brands, including Lillywhites, the Piccadilly Circus sports store, Dunlop Slazenger, Karrimor and Kangol. He also owns a 29.4 per cent stake in Blacks Leisure, the outdoor clothes and equipment retailer, and small stakes in rivals JJB Sports and John David Group, the owner of JD Sports.

Turnover of the group is unknown but said to be far above the £900 million indicated by the latest accounts filed at Companies House, while profits are likely to have more than doubled from the £75 million recorded then. Ashley would not comment yesterday.