Tottenham’s pre-tax loss increased by more than 50% from £61m to £95m, which chairman Daniel Levy said was a reflection of “significant and continued investment in the playing squad.”
Tottenham have now suffered large losses four years in a
row, adding up to a deficit of more than £300m over this period, though to be
fair 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.
Revenue rose £107m (24%) from £443m to £550m, which was a
new club record, breaking through the half a billion pounds barrier for the
first time. This was predominately due to participation in the Champions League
and hosting major events at the Tottenham Hotspur Stadium. Tottenham have enjoyed the second highest
revenue growth of the Big Six since 2019, only behind the behemoth that is
Manchester City.
Commercial is now
Tottenham’s most important revenue stream, accounting for 41% of total revenue,
ahead of broadcasting 37% and match day 21%.
However, the revenue growth was wiped out by a substantial
increase in operating expenses, which were up £132m (27%) from £483m to £615m,
while profit from player sales dropped from £19m to £16m.
In addition, net interest payable increased by £4m (10%)
from £41m to £45m. It’s worth noting that this substantial charge contributed
almost half of the club’s £95m pre-tax loss.
Tottenham’s £95m pre-tax loss is the second worst in the
2022/23 Premier League, only surpassed by Aston Villa’s £120m. That said, they
are not alone in posting a large deficit, as half of the top flight lost more
than £50m last season, including Chelsea £90m, Leicester City £90m and Everton
£89m.
One reason why Tottenham have struggled to make money in
recent years is their low profits from player trading (for a big club),
generating less than £20m in each of the last five years. As a result, Tottenham’s £80m profit from
player sales in the last five years is towards the lower end of the Premier
League and the smallest of the Big Six. This was miles below the likes of
Chelsea £496m, Manchester City £337m and even Leicester City £249m.
However, that will change this season following the big
money sale of Harry Kane to Bayern Munich for a reported £82m (€95m). Although
he might no longer be “one of their own”, his sale will make a difference
financially, especially as the proceeds represent pure profit, given that he
was an Academy product.
Tottenham earned €66m for reaching the last 16 in the
2022/23 Champions League, which compromised €15.6m participation fee, €20.6m
prize money, €19.3m UEFA coefficient, €9.5m TV pool and €0.6m final balance. UEFA prize money is a major differentiator
for the leading clubs, so qualification is a key part of Tottenham’s strategy.
Tottenham have earned more north of €300m from Europe in the
last six years, which is pretty good, though it should be noted that this is
the second lowest of the Big Six, only ahead of Arsenal’s €150m.
In the last seven years Tottenham have seen the highest
growth in match day revenue of any club in the Big Six with their £72m being considerably
more than the others, e.g. the next best increase was only £25m at Manchester
United. As a result of the steep growth,
Tottenham’s £118m match day revenue is now the second highest in the Premier
League, only surpassed by Manchester United’s £136m.
Following investment in the squad, Tottenham’s wage bill
rose £42m (20%) from £209m to £251m, which is easily a club record. Wages have
increased by more than £100m in just five years. Tottenham’s 46% wages to turnover ratio is by
some distance the lowest in the Premier League, even better than Arsenal and
Manchester United, both 51%. For even more perspective, this is significantly
lower than the other three members of the Big Six: Manchester City 59%, Liverpool
63% and Chelsea 79%.
Spurs’ squad (£579m) remains the sixth highest in the
Premier League, a fair way below the top five. Manchester City have broken
through the billion pound barrier and Chelsea will almost certainly join them
(and probably overtake them) when they publish their 2022/23 accounts.
Tottenham’s gross financial debt was basically unchanged at
£851m, mainly the loans used to finance the new stadium. Over 90% is at fixed
rates at a very attractive average interest rate of 2.79%. The average maturity
of the borrowings is 19.4 years, some of which stretch until 2051.
They now pay the second highest interest in the Premier
League with their £25m only surpassed by Manchester United’s £31m, though Spurs
do at least have a shiny new stadium to show for this, in contrast to merely
paying for the privilege of having the Glazers as owners.
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