Tottenham make £6.6m loss despite record revenues

[dww]

• Spurs made £22.7m profit before playing trading
• Total income up 6% at White Hart Lane

Associated Press
guardian.co.uk, Thursday 11 November 2010 10.05 GMT


Harry Redknapp's spending on the Tottenham squad means the club recorded a loss last year despite record revenues. Photograph: Mike Egerton/EMPICS Sport

Tottenham made a £6.6m loss after tax for the year ending 30 June 2010 following the investment in a squad that clinched fourth place in last season's Premier League and a place in the Champions League.

Increased prize money for the north London club's highest position since 1990 contributed to record revenue of £119.8m in the annual report released today, but the team could not match last year's £23.2m profit after buying players including Sébastien Bassong, Peter Crouch and Younes Kaboul. Profits before player trading were £22.7m.

Still, qualification for the lucrative Champions League was expected to boost income further this season. "We are benefiting now from our investment to date in the first-team squad," the chairman Daniel Levy said.

Tottenham said total income was up 6%, despite a lack of European competition, due to a season of sold-out home matches and increased broadcast revenue.

But that lack of European midweek matches contributed to a drop in sponsorship and corporate hospitality income to £25.8m from £27.4m, while revenue from ticket sales dropped by a similar amount for the same reason even though all 19 Premier League matches at the 36,310-seat White Hart Lane stadium were full.

Since 30 June, Tottenham have added William Gallas, Stipe Pletikosa, Sandro and Rafael van der Vaart to their squad for around £20m. That expense will feature in next year's results, although Tottenham should compensate for that in Champions League income.

"European and cup competitions remain an important part of our progression, particularly as we head off on a Champions League adventure which will test players and staff alike," the club's finance director Matthew Collett said. "Our successful approach to nurturing both homegrown talent and acquisitions through the transfer market will help the team to secure future success on the pitch."

[dww]

I wonder if 'arry can run another club into the ground or will CL revenue save him.

[Rich]

William Gallas, Stipe Pletikosa, Sandro and Rafael van der Vaart - I'd imagine at least two of those players are on £80k+ a week.

Good ole 'Arry will try his best to rack up some massive debts if he can...

[Alex]

When do out financials get released? Id be interested to see how were doing without this debt. I know its early days mind.

Ohh and Spurs making a loss this year means nothing. They will have the CL money to plug that hole soon enough. Next year is another matter though.

[tsb]

Do they declare how much was received / paid by Harry in brown envelopes?

[dww]

When do out financials get released? Id be interested to see how were doing without this debt. I know its early days mind.

Ohh and Spurs making a loss this year means nothing. They will have the CL money to plug that hole soon enough. Next year is another matter though.

I read somewhere that first year CL teams often actually only break even as they pay out most of the added revenue on bonuses paid to the squad and buying players to compete. Their next years accounts will be very interesting.

For the last decade or two Spurs have been financially very well run, it will be interesting to see if that has survived Redknapps arrival.

[CJ]

When do out financials get released? Id be interested to see how were doing without this debt. I know its early days mind.

Ohh and Spurs making a loss this year means nothing. They will have the CL money to plug that hole soon enough. Next year is another matter though.

i think the word OUR would be better placed there.

SMARTARSE

glass houses etc

[Alex]

i think the word OUR would be better placed there.

SMARTARSE

glass houses etc

Ohh **** off! One little typo and your all over it

[CJ]

its called revenge

i am a ****ing shark dont mess with me!!!!

[dom9]

I read somewhere that first year CL teams often actually only break even as they pay out most of the added revenue on bonuses paid to the squad and buying players to compete. Their next years accounts will be very interesting.

For the last decade or two Spurs have been financially very well run, it will be interesting to see if that has survived Redknapps arrival.

It just goes to show that prospective owners chasing ever increasing TV deals is just a fallacy.

It doesn't matter how much a club generates in revenue, they still spunk it all on transfers and wages.

15 years ago, some of the revenues clubs earn now could not have been comprehended. Despite that, how many clubs are profitable? This will never change.

[Craig_H]

Mods, please move this thread to a more appropriate forum, i.e. the bin.

TIA advance

[Nick77]

Slowly but surely he's bankrupting Spurs just like he did to Pompey - and once again he will NEVER get the blame because he's loved so much by Sky & the British press...

[Craig_H]

There's no way he will bankrupt Spurs. Joe Lewis is far too wealthy.

[Craig_H]

Albrighton just missed a sitter.

[Nick77]

There's no way he will bankrupt Spurs. Joe Lewis is far too wealthy.

Ok maybe not bankrupt them but put theminto a serious financial mess then