Skip to main content

Spurs make large losses three years in a row

The authoritative Swiss Ramble reviews the latest accounts of Tottenham Hotspur: https://swissramble.substack.com/p/tottenham-hotspur-finances-202122

Tottenham’s £61m pre-tax loss is the second worst reported to date, only surpassed by Manchester United £150m. North London rivals Arsenal also posted a large loss £46m, but both Manchester City £42m and West Ham £12m were profitable.

All clubs were adversely impacted by the pandemic, but it hit Spurs particularly hard, as they had invested in a very expensive stadium, counting on a large increase in match day (and commercial) revenue.

Tottenham have now suffered large losses three years in a row, adding up to a £209m deficit in this period, though two of these seasons were severely affected by the pandemic.  Before that, Spurs had reported profits for seven consecutive seasons, which had generated an impressive £412m surplus. In 2018 and 2019 alone Spurs delivered a hefty £226m profit.

Commercial is now Tottenham’s most important revenue stream, accounting for 41% of total revenue, ahead of broadcasting 35% and match day 24%. This season should see Spurs comfortably set a new revenue high for the club, thanks to the return to the Champions League and the new Premier League TV deal. It would be no surprise if they break through the £500m barrier.

Tottenham’s £183m commercial revenue is now fourth highest in the Premier league, ahead of both Chelsea £177m and Arsenal £142m, though still a fair way below the top three: Manchester City £30

Tottenham’s £443m revenue is now fifth highest in England, though still a fair way behind the other leading clubs, e.g. the top three are between £140m and £170m higher than Spurs.

Tottenham’s wages to turnover ratio decreased (improved) from 57% to 46%, though this is still higher than their amazing 39% pre-pandemic. Tottenham have consistently had one of the lowest ratios in the top flight, which is great news financially, though their fans would doubtless want to see more of the club’s cash represented on the pitch.


Labels:

Comments

Post a Comment

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...
Post a Comment
Read more

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...
1 comment
Read more