Arsenal America

Just seen the following story on Soccernet…….

Spurs hit by director’s resignation

Tottenham suffered another dent in their public image when non-executive director Howard Shore resigned from the plc board after a financing row over with chairman Daniel Levy.

It is the third high-profile parting of the ways at White Hart Lane in a matter of weeks, following last month’s sacking of manager Glenn Hoddle and the resignation last week of finance director Paul Viner.

Shore is considered a financial expert and is the chairman of a listed investment bank, yet he resigned because he felt Levy did not respect his views over the raising of cash to invest in the future of the club, and in particular the squad.

‘As a Tottenham supporter, I have in my capacity as an independent non-executive director always sought to act in the best interests of the club and its shareholders, most of whom are fans,’ Shore said.

‘This is of particular importance in a case such as this where there is a substantial shareholder with such strong representation on the board.

‘I have made clear my views as to how best these interests shall be served, particularly in relation to fund-raising which is after all my area of expertise.

‘Regretfully, these views are not shared by the chairman and parties associated with Enic. I therefore now consider that I have no option but to tender my resignation.

‘I have a lot of expertise in this area and I am all in favour of raising money to strengthen the squad, but I believe that raising funds should be an equity issue, not a debt issue - we do not want the club to follow in the footsteps of Leeds.

‘The current disunity on the board cannot be good for any company, let alone such a high profile football club.’

Spurs announced an annual loss of more than #7million this week but Shore insisted the club’s finances were not in an unhealthy state.

He added: ‘There is no short-term financial crisis or urgent need for additional working capital.

‘Tottenham’s current financial position, both operating profit and balance sheet, is healthy.

‘This is evidenced by the recent preliminary statement showing an operating profit of #11million - before amortisation, impairment and profit on sales of player registrations - and net debt of #10.6million - funded largely through a draw down under the securitisation.

‘However, I have consistently since joining the board encouraged the raising of further equity funds as the best means significantly to strengthen the playing squad.

‘In the light of what has happened at other clubs I believe that this would best be financed through equity not debt or some quasi debt instrument.

‘I also believe that in the right circumstances there could be considerable appetite from third parties for a new equity issue made available to all shareholders on a pro rata basis.’