Despite achieving a record turnover of £549.6 million ($691 million) for the year, operating expenses increased by 21%. The club attributed this rise to “cost escalations outside our control, such as utilities, rates, and consumables,” as well as “significant” investments in new players.
Tottenham saw a 20% increase in their wage bill, totaling £251.1 million ($316 million), positioning them as the fifth-highest in the league behind Manchester City, Liverpool, Chelsea, and Manchester United.
The revealed loss marks a significant jump from the previous year’s £50.1 million ($63 million). Speculation has been circulating for some time regarding the potential sale of the club by its owners, ENIC, if a suitable offer is presented. However, sources from the club clarified that the ongoing discussions are more focused on selling a stake rather than a complete takeover.
“Our guiding principle is crystal clear – to maintain a forward-thinking approach and manage the club in a sustainable manner,” stated Levy in the chairman’s accompanying statement with the financial results.
Levy emphasized the importance of controlling expenses, increasing commercial and sponsorship revenues, and ensuring consistent European participation to sustain investments in the team and secure top accolades. Since the launch of the stadium in April 2019, over £600 million ($755 million) has been invested in both the men’s and women’s first-team squads.
To fully leverage their long-term potential, continue team investments, and undertake future projects, Tottenham requires a substantial increase in its equity base. The board, in collaboration with Rothschild & Co, is engaging with potential investors. Any proposed investment would need approval from the club’s current shareholders.
Key signings during the stated period included James Maddison, Guglielmo Vicario, and Beth England, with England’s transfer from Chelsea to Tottenham in January 2023 breaking the Women’s Super League club record with a reported fee of around £250,000.
Although most of Tottenham’s significant summer transactions occurred after June 30, notably Harry Kane’s move to Bayern Munich for up to €120 million, the club’s £1 billion stadium stands as a pivotal asset for their future growth. The stadium hosted Beyonce’s highly successful five-night concert series last summer, dubbed the “highest-grossing concert ever by a female artist at that time.” Additionally, Tottenham has a 15-year collaboration with Formula One for an electric karting experience at the stadium and extended their contract with the NFL to host matches at the venue until the 2029-30 season.
Levy’s personal earnings rose from £3.3 million to £3.6 million, accompanied by a £3 million ($3.7 million) bonus. This increment may draw criticism from fans, particularly after a recent 6% increase in ticket prices by the club.
FAQs
What prompted Tottenham to consider new investors?
Tottenham reported a substantial post-tax loss of £86.8 million, leading the club to explore potential investments to bolster their financial position.
What are the key factors contributing to Tottenham’s financial challenges?
Operating expenses rose by 21%, primarily due to uncontrollable cost escalations like utilities, rates, and consumables, along with significant investments in new players.
Is Tottenham open to a complete sale of the club?
While there has been speculation about a potential sale of the club, sources indicate that current discussions are more focused on selling a stake in the club rather than a complete takeover.
