Tottenham are “in discussions with prospective investors” in an effort to “capitalise on our long-term potential”, the chairman, Daniel Levy, has revealed after the north London club posted an overall loss despite an increase in revenue.
The Premier League club’s total revenue for the financial year to 30 June 2023 exceeded half a billion pounds for the first time, with the figure of £549.6m a significant increase on £444m for the previous year.
However, operating expenses including first-team costs have risen by 21 % to £487.9m, with a loss of £86.8m put down to “significant and continued investment in the playing squad” in the financial results published by the club.
Levy announced in his statement accompanying the results that Spurs were looking for an injection of equity. He wrote: “To capitalise on our long-term potential, to continue to invest in the teams and undertake future capital projects, the club requires a significant increase in its equity base.
“The board and its advisors, Rothschild & Co, are in discussions with prospective investors. Any recommended investment proposal would require the support of the club’s shareholders.”
Revenue from match receipts, Uefa prize money, TV and media and commercial all increased on 2021-22, as did the profit from operations which rose from £112.3m to £138.7m. The club report that its net debt as of June 2023 was £677.4m. More then 90% of £851.2m borrowings are at fixed rates, with an average interest rate of 2.79%.
“We expect commercial revenues to rise from third-party events, although this will not compensate for the lack of European football this season,” Levy wrote. “Additionally, as reflected in these results, we expect the impact of rising costs, caused by geopolitical events, to continue to impact all areas of our operations.
“Our ethos is clear: to be far-sighted and run the club sustainably. This involves strict control of our cost base, increased commercial and sponsorship revenues and consistent European participation, all of which are key to our ability to continue to invest in the squad and win top honours.
“Since opening the stadium in April 2019, we have invested over £600m in our men’s and women’s first-team squads.”
Source: theguardian.com
