Spurs’ financial health and long term prospect

  • There is only one thing weirder than posting on internet forums... lurking on internet forums!
    Registration only takes a minute and removes most of the adverts. You're here now, you might as well...

    Get involved!

Register to remove

A really good analysis of our financial health.

I do believe that we are on our way to be an elite Football club on similar platform to the likes of Bayern Munich or Juventus, assuming Pochettino stays and we have the financial resources to attract the best talents.
 
There isnt alot of difference between the big clubs. It depends on who has the best managers. Klopp and Poch have taken over from Wenger and Fergie. Ignoring Guardiola for a second.

Poch will be here for the next 15 years IMO. Theres no reason for him to leave.

If he can achieve top 4 4 years in a row and a CL final. What could he do with a bit more money at Spurs?
 
This is a factor which wasn't made much of in the video :

Top 4 Finishes in last 4 Years
ManCity 4
Spurs 4
Liverpool 3
Chelsea 2
Woolwich 1
Leicester 1
ManUtd 1

And a top 4 finish opens the door to CL revenues, which are substantially bigger than EL.

So the more top 4 finishes we get and our main rivals do not the better off financially we are and that translates into getting better players in TW's over time, which helps us retain top 4 finishes.
 
Most of those points were already well known - but the key bit of insight at the end was that capital payments don't have to start right away.
The way I understood it, for the next few years the interest payments will leave a good amount to spend in upcoming transfer windows and basically rebuild the squad.
After that, even if more income is redirected back to paying off the stadium, there should be some money left to maintain the squad with a smaller number of signings and offer better salaries.
 

Register to remove

Most of those points were already well known - but the key bit of insight at the end was that capital payments don't have to start right away.
The way I understood it, for the next few years the interest payments will leave a good amount to spend in upcoming transfer windows and basically rebuild the squad.
After that, even if more income is redirected back to paying off the stadium, there should be some money left to maintain the squad with a smaller number of signings and offer better salaries.
Its pretty standard for loans taken out to build an asset to only start to be repaid once the asset is in use - so repayments started in theory from the date of the first match v Crystal Palace.

What's not clear to me from reading the accounts is whether there are any loan repayments before the end date of these loans of £637m of April 2022 when Levy said in the results that these loans might well be refinanced as a series of bonds with different repayment dates - more detail in the accounts thread and Note 15 to the accounts (access through the accounts thread)Management - Tottenham Hotspur - Year Ended 30 June 2018 Accounts

I suspect we will certainly make some capital repayments as well as paying the interest, but we should have significant sums to spend if the right player(s) become available - quite how much is open to debate but my guess would be £50m - £100m plus sales proceeds of players. Plus of course new contracts (with bigger wages) for existing players we want to keep.
 

Stopspot

Now I'm a big fat dynamo!
Read somewhere that PSG owners are looking to sell and buy an English club. I really hope it's not Spurs.
West Ham the most likely ones (the horror) if they want a Premier League one.

They already own the Olympic village I believe. At least in part.
 
This is a factor which wasn't made much of in the video :

Top 4 Finishes in last 4 Years
ManCity 4
Spurs 4
Liverpool 3
Chelsea 2
Woolwich 1
Leicester 1
ManUtd 1

And a top 4 finish opens the door to CL revenues, which are substantially bigger than EL.

So the more top 4 finishes we get and our main rivals do not the better off financially we are and that translates into getting better players in TW's over time, which helps us retain top 4 finishes.
Agree completely. You have to use the advantage to build further advantage. It's always been this way that if you play your cards right you prosper further at the expense of your rivals. Woolwich largely failed to capitalize on their advantage and now start every season hoping they get in he CL rather than being confident of it.

The revenue (direct and indirect) just grows and grows, now more than ever due to the coefficient split favoring established clubs. Particularly winning clubs. Winning the CL this year would be massive for us in that respect.
 
West Ham the most likely ones (the horror) if they want a Premier League one.

They already own the Olympic village I believe. At least in part.
Putting aside rivalry a moment, I hope that doesn't happen because you don't support a team like West Ham for the glory, you do it out of loyalty. If there was such a takeover what remains of the soul of that club, already shat on by the move to the athletic bowl, would be gone, nothing left for the true fans there.

Looking as a Spurs fan though, it would be pretty funny to see the club effectively die in all real sense.
 
Agree completely. You have to use the advantage to build further advantage. It's always been this way that if you play your cards right you prosper further at the expense of your rivals. Woolwich largely failed to capitalize on their advantage and now start every season hoping they get in he CL rather than being confident of it.

The revenue (direct and indirect) just grows and grows, now more than ever due to the coefficient split favoring established clubs. Particularly winning clubs. Winning the CL this year would be massive for us in that respect.
winning would be gobsmacking - and financially very good with not only extra prize money but no doubt sponsorship deals have a 'success in CL' clause which yields even more more…..and maybe enables a naming rights sponsorship deal for stadium etc.

But even runners up would take us up a notch.

And a 5th CL run in 5 seasons next season (with player reinforcements this TW) would help cement clear water between ourselves and Woolwich.

And even start to make a gap between ourselves and ManU in terms of current footballing standing (although sadly their huge commercial income will allow them to ride the storm even though it might take them 2 or 3 seasons to revive their squad) - and amazingly we are already equal with ManU 5 year coefficient which determines CL seeding, and another good run next season could take us well clear of them which will help us when they are back in CL.
 
When you consider how much Woolwich and Utd have spent, 1 top 4 finish a piece in the last 4 years is a fucking embarrassment. Pochettino doing some job with the resources available. Levy must be wanking himself to sleep every night.

Even with the stadium it seems that we're in a brilliant financial position - the income from our CL run alone this season will be close to £100m won't it. Not to mention the increased exposure on our great club.

:lamelaaghh:
 
So in the richest league in the world, 7 clubs reported overall losses & further 7 reported profits of only £30m or less.

14 of the 20 Premier League clubs struggling to post genuinely positive figures despite the biggest TV deal in its history lining pockets like never before. We really should be thankful we are run as well as we are, it gives us a huge advantage over so many clubs that won't be able to keep their excessive spending up.
 
So in the richest league in the world, 7 clubs reported overall losses & further 7 reported profits of only £30m or less.

14 of the 20 Premier League clubs struggling to post genuinely positive figures despite the biggest TV deal in its history lining pockets like never before. We really should be thankful we are run as well as we are, it gives us a huge advantage over so many clubs that won't be able to keep their excessive spending up.
If you are a growing team why would you want profits, serious question there. Profits get taxed, if you are an owner of a team and you want to grow I would think zero profit is a good business model.
 
If you are a growing team why would you want profits, serious question there. Profits get taxed, if you are an owner of a team and you want to grow I would think zero profit is a good business model.
You actually think zero profit isn't a good business model? Read your last sentence back and tell me you'd think the same if you ran your own business.

The profit is still there, it hasn't vanished into thin air, it's there for us to use, to invest further, it keeps us from looking over our shoulders should something bad happen.

Ask owners or fans at clubs like Swansea & WBA in their current state how they'd feel being closer to zero profit with what they did last year compared to us. The two best financial figured teams, Spurs & Liverpool both competiting in the Champions League final to me really does say it all about how vital the running of a clubs figures are to its trickle down effect. If we need to spend we can spend, the same cannot be said for roughly 75% of the leagues clubs who are at large solely dependent on their owners money, not the clubs.

Zero profit is never a good business model, in any walk of life so why football is seen as any different is completely beyond me.
 

Register to remove

You actually think zero profit isn't a good business model? Read your last sentence back and tell me you'd think the same if you ran your own business.

The profit is still there, it hasn't vanished into thin air, it's there for us to use, to invest further, it keeps us from looking over our shoulders should something bad happen.

Ask owners or fans at clubs like Swansea & WBA in their current state how they'd feel being closer to zero profit with what they did last year compared to us. The two best financial figured teams, Spurs & Liverpool both competiting in the Champions League final to me really does say it all about how vital the running of a clubs figures are to its trickle down effect. If we need to spend we can spend, the same cannot be said for roughly 75% of the leagues clubs who are at large solely dependent on their owners money, not the clubs.

Zero profit is never a good business model, in any walk of life so why football is seen as any different is completely beyond me.
Zero profit is the standard life cycle so why would football be any different?

Assuming "being a premier league club" means your product is in development / introduction phase then it would be expected / good business practice to have zero profit.


In addition to this, profits are taxed so if you make profit you may be better off investing those in infrastructure etc. rather than recording it as profit.
 
Last edited:
Top Bottom