Tottenham Hotspur Football Club is currently engaged in discussions with “prospective investors” after announcing a substantial £86.8m loss in their 2022-23 financial accounts. The club’s total revenue surged by an impressive 24% compared to the previous year, reaching a record-high of £549.6m. Notably, matchday income also achieved a new pinnacle at £117.6m.
Despite the remarkable increase in revenue, Tottenham reported a loss for the fourth consecutive year, following a deficit of £50.1m in 2022. Chairman Daniel Levy emphasized the necessity to “capitalise on our long-term potential” and highlighted the club’s requirements for a significant increase in its equity base to continue investing in the teams and undertake future capital projects.
Under Premier League profit and sustainability (PSR) regulations, clubs can incur a maximum aggregate loss of £105m over a three-season period, or £35m per campaign, before facing sanctions. Tottenham’s losses over the last three years surpassed this threshold at £220.7m. However, the annual depreciation charge of £72m, primarily associated with their stadium and other facilities, safeguards them from breaching PSR regulations.
The club is currently fully compliant with the rules and remains supportive of enhancing PSR to ensure the Premier League’s competitiveness and sustainability. Although Tottenham does expect commercial revenues to rise from third-party events, it is acknowledged that this may not offset the absence of European football in the current season.
Operating expenses for Tottenham in 2022-23 elevated by 21%, amounting to £487.9m, attributable to increased first-team costs and the hosting of numerous non-football events, such as NFL fixtures, boxing, and music concerts. The wage bill witnessed a substantial 20% increase, reaching £251m, as a result of significant and continued investment in the playing squad.
Chairman Daniel Levy also received a pay increase from £3.2m to £3.5m, in addition to a £3m bonus. Notably, Tottenham’s decision to raise season ticket prices by 6% for the 2024-25 season has been met with criticism from the Tottenham Hotspur Supporters’ Trust, deeming it “unacceptable” and “unjustifiable.”
Furthermore, the financial accounts do not specify the cost incurred to dismiss manager Antonio Conte in March 2023, as well as the subsequent appointment of his permanent successor, Ange Postecoglou. The accounts also reflect the sale of Harry Kane to Bayern Munich for 100m euros (£86.4m) in August, a deal falling outside the financial window and thus being included in the 2023-24 accounts.
In summary, Tottenham’s financial results for 2022-23 portray a complex landscape marked by significant revenue growth, intertwined with substantial operating expenses, impending discussions with potential investors, and noteworthy changes in the club’s leadership and squad composition.
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