Spurs sets aside pounds 1.4m provisions: Sugar also makes unspecified provision to cover possible court expenses

TOTTENHAM Hotspur has provided pounds 500,000 to cover legal action with Terry Venables, who was ousted as chief executive of the football club by Alan Sugar, chairman, who also heads the Amstrad electronics company, writes John Shepherd.

The allowance forms part of pounds 1.4m of provisions announced yesterday by Tottenham, which said that previously expected profits of pounds 4.7m for the year to May would now amount to about pounds 3.3m.

Investors were wrongfooted by the announcement and Tottenham's shares dipped to 105p before closing at 109p, down 6p.

Mr Sugar, owner of 47 per cent of Tottenham, has also personally made an unspecified provision to cover court costs, some of which will be borne by Amshold, his investment vehicle.

Tottenham has instructed Philip Heslop QC and Anthony Sendell QC in its defence against two separate actions by Mr Venables.

Mr Venables, who sold his 20.56 per cent shareholding last month, yesterday vowed to continue to pursue his case for wrongful dismissal from his pounds 225,000-a- year post. He signed a five-year contract with Tottenham in July 1991.

Tottenham has also made an unknown out-of-court settlement with Brown Shipley & Co, the company's former merchant banking advisers. The settlement has been included in a pounds 250,000 general provision.

The remaining pounds 600,000 of provisions are for repairs to the rebuilt East Stand. Colin Sandy, finance director, said the problem was with a wooden staircase that had developed wet and dry rot and had since been replaced with a steel construction.

He said that fireproofing treatment to the wood did not dry out. 'We are looking at ways of getting our money back.'

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