Is it better to invest in Spurs before or after a trophy win?

Is it better to invest in Spurs before or after a trophy win?

Good data Spurs folk.

After the piece about the bigger picture at Spurs, Daniel Levy's Masterplan: Why Spurs Are Set to Win Big in the Next 5 Years, a follow up piece was required to answer the question: Is it better to invest in Spurs before or after a trophy win?

So let's try and explain that.

Winning the Europa League would certainly enhance Tottenham Hotspur's profile and make the club a more attractive investment opportunity, but whether it’s better to invest before or after such a success depends on the goals of the investor.

How Winning the Europa League Enhances Spurs' Appeal:

1. Higher Revenues: Success in the Europa League leads to more prize money, a higher chance of qualifying for the Champions League, and increased matchday revenues from both ticket sales and merchandise. This financial boost makes the club more profitable, which is always appealing to potential investors.

2. Boosting Squad Value: Players’ values often increase after winning a major trophy, especially younger talents. This means Spurs could have a more valuable squad, further raising the club’s overall worth in the eyes of an investor.

3. A Stronger Foundation for Future Success: Winning a trophy helps to solidify the idea that Spurs are building towards sustained success. For investors, this creates confidence in the long-term vision of the club.

Is it Better to Invest Before or After a Trophy Win?

• Before a Trophy Win: Investing before a major success, like winning the Europa League, often means buying into the club at a lower valuation. For investors who believe in Tottenham’s long-term strategy, this could be an opportunity to get in early, before the club’s value increases following a trophy win. The potential for higher ROI (Return on Investment) is greater if the club wins trophies and increases its valuation after the investment.

• After a Trophy Win: If an investor waits until after Tottenham wins a trophy, they may need to pay a higher price for a stake in the club because the club’s valuation will likely have increased. However, the upside is that there is less risk involved—Spurs would have proven they are capable of winning major competitions and the club’s potential for sustained success is more evident.

The Wrap Up:

So there you have it, fairly simple really. While winning the Europa League would definitely make Spurs a more attractive investment, there’s a strong argument for investing before the club wins a major trophy. 

This allows investors to get in at a lower price and reap the rewards if Tottenham’s success leads to a higher valuation. However, waiting until after a trophy win offers more security, as the club would have demonstrated its ability to deliver on its long-term goals.

Ultimately, it depends on the risk appetite and strategic goals of the investor.

Links

For a more in-depth insight into how financial and valuation aspects are affected by success in competitions like the Europa League, check these links:

• Tottenham Hotspur Financial Overview (Forbes)
  An in-depth financial profile of Spurs, including revenue, profits, and overall valuation.
  https://www.forbes.com/teams/tottenham-hotspur

• The Benefits of Winning the Europa League (UEFA)
  A breakdown of how winning the Europa League impacts clubs financially and competitively.
  https://www.uefa.com/uefaeuropaleague/news/

• Football Finance: How Trophies Impact Valuation (Deloitte Football Money League)
  This report covers how clubs' valuations change after trophy wins, with historical data.
  https://www2.deloitte.com/footballmoneyleague

• Premier League Club Valuations and the Role of Success (Financial Times)
  A look at how winning trophies, especially in Europe, affects club valuations.
  https://www.ft.com/football-investment

• Transfermarkt: Tottenham Hotspur Squad Market Value
  Live data on the value of Spurs' squad, highlighting how success in competitions can increase player valuations. 
  https://www.transfermarkt.com/tottenham-hotspur/startseite/verein/148

What's coming up during this international break, where we have an England manager insulting the King, the Royal Family and our nation by not singing the National Anthem.

I'm sorry, but his job is to promote this country in the best light and he is refusing to do that so should be relieved of his duties immediately.

This is no different to the Yves Bissouma incident in principle. These people are role models, whether they like it or not, whether they want to be or not, they are and they are highly paid.

They should promote the right image and be an example to the youth at all times so refusing to sing the national anthem when representing your country makes you unfit to hold such a position.

Back to what's coming, a big post that looks at some stats to show Spurs under Ange Postecoglou are on the right track, an article on Daniel Levy and one about Ange Postecoglou.

If you are pining for the fjords, then here are a couple of previous articles to whet your appetite for more THBN ramblings:

1. Transfer Windows Club and Manager view v Fans view
2. Spurs' parallels with the England cricket team

See you soon folks.

COYS