Explaining Spurs Transfer Funds
3 min read
Hello once again to some Tottenham Tittle Tattle from the blog that doesn't pander to the 90 minutes fan, but supports the club and looks for constructive ways to improve.
I fully appreciate fans help to create a vibe surrounding a club and that negative vibes do nothing to support or improve the club, indeed that vibe is another barrier to success the club then have to overcome.
People moan on Twitter all the time asking why if we are a big club do we not have any money to spend so I thought I'd have a stab at it.
Here is a very quick and simplistic look.
Swiss Ramble produces some excellent stuff and he has produced a two-page summary of Tottenham Hotspur,obviously using the last published accounts.
It also contains figures for 2018 to compare.
When the stadium is open we receive the 4th highest matchday income, but alas it isn't open yet.
We did receive the 3rd highest broadcasting figure but that is set to reduce this season and next season.
Our commercial income is the 5th highest in the league and an area we need to improve.
Summer events and NFL football will help, When we get an American Football Franchise then perhaps that will make a significant difference.
Total revenue wise we sat 4th in the Premier League.
In terms of expenditure, our wages bill went up 21% and was the 6th highest in the league.
Our wages to turnover is 39%.
Spurs have the highest interest payments to make in the Premier League because of the new stadium.
As previously posted, we owe £83m in transfer instalments more than we are due to receive, the 2nd highest in the Premier League (that's ahead of this window).
Spurs owe £88m in transfer fees.
Spurs are owed £4m in transfer fees.
Spurs transfer fee debt therefore is £83m (rounded figures).
That last fact alone gives other clubs more opportunities than us, given we spend £180m on new players and changing manager in the last financial year.
Matchday income makes up to 18% of our total income.
Broadcasting income makes up to 53% of our total income.
Commercial income makes up 29% of our total income.
The club have the highest gross debt in the Premier League £658m and the highest Net debt £534m.
Wages £179m
Depreciation £25m (highest in the PL)
Other Expenses £114m (2nd highest in the PL)
Interest Payments £25m (highest in the PL)
TOTAL £342m
Spurs income was boosted by reaching the Champions League final but, obviously, this money isn't guaranteed in future seasons, indeed next season will see something like an £60m drop with the Europa League earning a pittance compared with the Champions League.
TV Income from European run was £90m
Total Income £461m
Reduce that by lost income (solely from TV revenue) brings it to £401m and of, course, we are losing money in every other sphere while the stadium is not earning, while players wages, for instance, remain the same.
All this basic maths leaves the club with £59m
It should be clear to all why money is tight, even the 90 minute fan.
Now, I put myself on the line early June with transfer calls and then I put my head on the chopping block again quoting transfer fees and wages.
News breaking today that Spurs and Southampton have agreed fees for Kyle Walker-Peters at the £12m stated and Pierre-Emile Højbjerg at the £15m + add-ons stated.
Personal terms with the Saints man were agreed months ago.
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