- Jan 27, 2008
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That last sentence is the key one -at some stage, and this is the interesting part, ENIC will have to take a decision as to the optimum time to realise the greatest value for their asset; but they will sell - that’s how they make their money and it’s not through the p&lHow long have you been following Spurs? Did you see the trundlers, mediocrities and token, superannuated ex-stars whom the club was putting onto the pitch in the 90s? Were you there when we were finishing in the bottom half of table and had a negative goal difference nearly every season? When we thought beating West Ham was the highlight of our season ... because we couldn't compete with any of the other London clubs, never mind the English "top 4" and the other major European clubs?
We're a serious, major footballing club now, regulars on the highest international stage. In 2001, we were a fucking joke. Taken over the relevant period of 16-17 years, the quality of the football has increased ten times as much as the profitability of the club.
The club has been mildly profitable since shortly after ENIC acquired it, because first they stopped running it into the ground and then they implemented a gradually-developed long-term plan. But it's a fallacy that the "English National Investment Company" is obsessed with profitability. They don't take dividends out of the club. They are a long-term investment vehicle with a business plan that is all about increasing asset value, not profitability. They acquire under-exploited assets, invest to increase their value and eventually sell them for a huge capital gain.