The top four English clubs are more than £2 billion in debt, we are frequently reminded, not least by the concerned president of Uefa, Michel Platini, and plenty more in the Premier League owe fortunes too.Amid it all, though, there is an example of prudence and prosperity. Step forward Tottenham Hotspur.
The club have posted a record profit of £33.4 million, helped by player sales of £56.5 million. To offset that, income was down 1.6 per cent at £113 million and their operating profit did fall 31 per cent to £24.1 million. Still, these are impressive figures in a recession.
On top, the club are building a new training ground in Enfield and have also submitted plans for a new stadium next to the existing White Hart Lane ground.
Now, Chelsea and Manchester United may be able to carry the debts they do either because of a benefactor not yet calling in his loans or because income levels are big enough for banks not to worry.
In Arsenal's case, they have a new stadium for their borrowings, which they eat into because revenue streams are now so much higher, so all is coming together well enough. Liverpool, however, cannot do so because they have been struggling to repay their debts.
Success in football frequently goes hand in hand with fiscal management off it. Liverpool have messed up over the last 12 months and are starting to feel the heat from, most notably, the Middle Eastern money of Manchester City.
Spurs though, in their first 38 league games of Harry Redknapp's management tenure, accumulated 65 points - enough to finish fifth. As they continue to progress financially, that fourth place looks within their compass.
There is a lesson in here from Tottenham's current position.
Debt can be carried by the most massive, if they are run cleverly enough to do so and bring in enough revenue. Temporary success can also be achieved by cash injections.
Getting things sorted commercially, picking the right manager and buying and selling players cannily, is the more durable mix, however, for the solid foundations needed to build a club properly.
Comments (Page 1 of 1)
Big pat on the back Levy and his partners in success.
The future is bright, the future is lily white.
COYS!
Interesting reading but Spurs are small fry compared to the bigger wealthy clubs. According to Forbes, the definitive rich-list, the current top 3 in world revenue is 1. Real Madrid, 2. Man Utd, 3. Arsenal. No sign of Spurs and worringly for their fickle fans is the fact that Spurs are currently well in the red regarding current transfers i.e. big outlays on Palacios, Keane, Defoe, Crouch. NEXT years figures will be a more accurate judgement on Levys mismanagement of the mediocre London club, who even trail Chelsea as London's second club.
For a club who have never had Champions League football and whose stadium only holds 36,500, the fact that they are in the top 15 richest clubs in the world speaks volumes for the way they have been managed. The 'big outlays' in many respects involved the canceling of previous transfer debts owed by other clubs (Portsmouth, Liverpool). Spurs so called fickle fans still pack out their stadium for every game and have a 58,000 capacity stadium in the pipeline which will also be packed out.More European trophies than every London Club, more FA Cups than Chelsea, more league Cups than every other London Club. Not the hallmarks of mediocrity that.
No sign of Spurs? If i recall correctly Spurs were about 7th or 8th on that list the last time it was discussed on Sky Sports.
Also, you can't just state we'll be in the red next year because of purchases without also considering the sales we made or are likely to make (pav, Bentley, Hutton etc).
Spurs may not be at the level of the 'Sky4' yet but you can't deny it is a well run profitable club with a huge fanbase (...and we obviously don't have any glory hunters in our fan base either!)
Sean - indeed it is interesting reading. Spurs obviously turnover less money than the three you mentioned (and several others) but that is because they neither have the Champions League revenue stream of the clubs you mentioned, nor a high capacity stadium to increase revenue.
Despite these factors though Spurs have continued to be competetive in the transfer market without piling on a high level of debt.
A football finances report I read a year or so ago showed Spurs as having the highest turnover of any club outside of the Champions League.... impressive considering that they have never participated in this.
Spurs' chairman Daniel Levy always said that there were three main objectives and in priority order these were:
1. To invest in the playing squad
2. To build a new training ground
3. To significantly increase capacity at the new stadium.
They have certainly consistently invested in their playing squad. Are underway with (reportedly) the best training ground in Europe and have submitted extremely impressive plans for their new stadium.
It also seems that Spurs have learnt from Arsenal's failures with their new stadium - both from a financial and design perspective:
1. Seperating the alternative projects from the stadium build (intending to sell off the land with planning permission for the houses, supermarket and hotel instead of having to raise the additional finance to build these themselves).
2. Not underselling themselves on the stadium sponsorship deal as Arsenal did.
3. Concentrating equally as much on atmosphere of the new stadium as they are on the corporate side of things.
Also Sean you talk about Spurs being well in the red regarding current transfers. The recently announced results actually INCLUDE the purchases of Keane, Defoe and Palacios.
Crouch, Bassong, Krankjaer, Naughton and Walker are those that will appear in the next set of accounts (but equally the sales of Zokora, Bent, Boatang and Chimbonda will also be included. I believe the net outlay for Tottenham's summer trading was -£9 million. On pre tax profits of approximately £32 million before player trading and tax. That still leaves Spurs a budget of over £20 million to spend in January if they so wish without having to take on any extra debt.
I think the above shows that Levy has done anything but mismanage Tottenham and all but the most one-eyed Arsenal fans would agree.
What a load of tosh. Spurs are all about buying and selling quite quickly. These figures are all skewed and thoughts of a champions league place are Absolutely Nothing But a Dream...
Arry will try but he won't get anywhere. Why not give up and start supporting Barnet or something...you spuds!!!
Is this a joke?
Spurs figures would have been impressive had their profit been BEFORE player trading. But it wasnt. Spurs would have lost 25million had they not sold players. Is that the best way to run a club? Tottenham continue to buy and they do not have anyone else like Carrick or Berbatov that will get big money when sold.
Arsenal made an emormous profit BEFORE player trading. Arsene Wenger is sitting on a 25million profit of his own from the sale of Toure and Adebayor that was not included in Arsenal's last accounts.
Strange article.
Lets hope Sean isn`t a bank manager?
Er Sean were 12th richest in Europe & hardly fickle fans we sell out year after year even without a successful team!!!
And of course, Spurs don't have a rich benefactor who ploughs money in. Ok, so he isn't as public as Mr Abramovich, but Joe Lewis is the sole reason this club still exist.
They continually buy a lot more than they sell on the transfer market, yet rarely (never?) qualify for the big paying tournaments. As Sean eluded to, next years figures (with 12 months of the dodgiest manager in sport at the helm, plus JDR's mammoth payoff included) will be much more accurate reading.
NEWS FLASH: If Tottenham build their new playgrounds, they will have more debt than Arsenal. The Emirates is the only reason Arsenal have debt. Tiny tots do not have the same revenue stream to make the payments that Arsenal can. Does anybody think that Tottenham can make 56 million in transfers every year?
Pablo.
Take your bias glass` off for a minute and read the positive posts.
Spurs have not the revenue of CL football and still manage to balance the books after being the second biggest spender in the PL.
I`m sure if we managed to progress into the golden chalice of the CL we would be a major force in the PL, if we maintained our current astuteness in the business of football?. Can you imagine the financial consequence of Liverpoo, Manure or the goons missing out for a couple of seasons in the CL, sure the banks will be pulling their hair out at the thought of it.
Even if we don`t manage it, i hope Villa, Man Citeh, Everton, anyone just to put the banks on the backs of the PL cash abusers.
i'm an arsenal fan but i'm not going to be so biased to say that spurs are doing a terrible job or won't make any more progress (consistently up the league). that said whilst there is plenty going for them (genuinely i believe that) i don't *yet* see them touching the top 4 any time soon unless liverpool continue to implode financially as they are. spurs are a decent, solid team, doing well but i don't see much in the way of really high class players in their team. i think they're in really the exact same boat as everton and villa. all are good teams who if they have a good year and a top 4 team (most likely liverpool this year) implode have a shout at 4th, but i do think the gulf in quality right now between at least the top 3 and those below is really sizeable right now. that's not me trying to put a downer on spurs, it's just my honest opinion. that said, if spurs are lucky enough the liverpool continue to implode then 4th spot really looks there for the taking and if it takes liverpool to give the spot away for free for it to be taken then so be it. so then if they do steal 4th place and qualify for the cl then perhaps with the extra money earned they could consolidate their place with a couple of good signings and take it again next year. personally i think spurs won't be a title contender (at the end of the season) within the next 4 years because i think their squad is currently nowhere near big enough to compete at the highest level right now. champions league means games against the best teams in the world on a regular basis whilst trying to juggle the league, carling cup and fa cup, it's a very big ask and i think you have to question whether you can imagine spurs current squad really striking fear into any of the top seeded teams in europe. english teams have done so well in the cl lately that in order to be a league contender you have to be one of the top 5 or 6 club teams in world football and i don't think any spurs fan will pretend that that is the case for them. that said i respect their progress and think they have to sieze this chance to take liverpool's 4th, then invest in the team *very* cleverly with absolutely top quality players. they have a lot of good players but really only a couple of really high quality players and that has to be addressed if they want to push on. the solution for spurs is to come 4th for the next few years and use that money well and maybe after that they really will be a serious european force. until then i think it's reasonable to say that they aren't playing at the big boys' table yet! give them a few years and we'll see if they've progressed or not.
A good opinionated unbiased post Ryan.
Most Spurs supporters would agree with your opinion, we know we are nowhere near challenging for the PL title, far from it. It is going to take as you say, a CL spot for a few years to establish a foothold there, whether it`s us Citeh, Villa etc etc, it`s vital to regain that position the following season. Not an easy task and Liverpoo aren`t about to lay down and die, they can`t afford two seasons out of the CL.
Maybe a change of management at your new library or plastic Trafford in the near future will open another door. ;)