Skip to main content

Champions League win vital for the future of Spurs

Even though the amount of money at stake is only £3.5m, a victory for Tottenham Hotspur tomorrow in the Champions League final could be really transformative. Spurs have taken big steps forward, but their iconic new stadium has been financed by borrowing £650m that needs to be repaid. The stadium still needs a naming rights partner which would be an important source of additional income, but they are not so easy to find these days.

The fact that the club has managed to qualify for the Champions League for a fourth successive season despite having the Premier League's sixth highest wage bill is impressive, but for how long can this over performance be sustained if the club sticks to the £200,000 a week including bonuses wage paid to Harry Kane as its upper limit? Much of their over achievement is down to their manager Mauricio Pochettino who has made no secret of the fact that his future will be up for discussion again this summer.

Spurs have already made just under £60m from this year's Champions League run this year and revenues could grow as it morphs into a European Super League with exclusive membership keeping out clubs like Ajax.

Winning the Champions League would play very well in China, where Spurs have been quietly making inroads. They are also starting to experience growth in India, a largely untapped market.

Reclusive owner Joe Lewis, 82, will make a rare appearance in Madrid. The British billionaire has been rumoured to be looking sell for several years. KPMG have recently valued the club at £1.4 billion.

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....