Spurs revives £15m bond plan

TOTTENHAM Hotspur has secretly revived plans to ask shareholders for more funds, the Daily Mail has exclusively revealed.

City sources confirm that the Premiership club is looking again at a convertible bond issue, months after shelving the idea amid a boardroom row. Convertible bonds are interest-paying IOUs that can be swapped into shares, on pre-agreed terms, at a later date.

The north London club wants to raise up to £15m to spend on new players to revive its fortunes on the pitch. It will have to get the money before the transfer market reopens in January.

Spurs is languishing sixth from bottom in the Premiership, two points above the relegation zone, with just four wins in 14 matches. It is still looking for a permanent manager after sacking Glen Hoddle in September.

The board wants to offer the bonds to all investors, including the 20,000 fans who own shares. The offer would

be underwritten by a group of big shareholders, led by chairman Daniel Levy's vehicle Enic, which owns 29.9%. Spurs declined to comment.

Spurs lost £7m in the June year and net debt jumped 50% to £10.6m. There is speculation that the club is considering selling its White Hart Lane stadium to share a ground with hated local rivals Arsenal.

The shares, unchanged at 24 1/2p, value the equity at £25m. By comparison, Russian billionaire Roman Abramovich bought Chelsea last summer for £150m.

If the club decides the convertible issue is feasible it is likely to tell investors at next Thursday's annual general meeting.

A fundraising plan was abandoned in October amid disagreements about rising debts and Levy's growing control.

Finance director Paul Viner and non-executive Howard Shore soon left the board.