Tottenham avoid ‘horrendous’ financial situation as expert moots potential PSR profit
Tottenham look set to avoid a “horrendous” financial situation after a profit and sustainability (PSR) development has now emerged for the club.
Spurs released its accounts on Wednesday (3 April), showing that they have recorded losses worth up to £86.8million during the latest financial year.
Kieran Maguire revealed on The Price of Football podcast on Thursday (4 April) that it has taken their losses to about £260million over the past three seasons.
The football finance expert suggested people may, therefore, be wondering how Tottenham will be able to get that figure down to the £105million total that’s allowed to remain within the PSR rules.
But he added that the club’s infrastructure costs currently stand at about £70million a year and they can be added back to the overall figure, meaning almost £220million will be taken off the losses across the period.
That means their losses could fall to as little as £40million before the academy expenses are factored in, which are not included in the PSR figures, meaning they could even make a “small profit”.
“On the face of it, they look pretty horrendous because it’s £90million and, if you take a look at the losses that Spurs have made over the last three seasons, it’s £260million,” said Maguire when asked about Tottenham’s losses.
“You go ‘Jesus Christ, how on earth are they going to get down to £105million?’. But the big issue with Spurs is because they invested so much money in the stadium, their infrastructure costs are around about £70million a year, so you’ve got a loss of £260million.
“But you can add back your infrastructure costs, that’s going to be about £220million added back, so that just takes us down to a PSR loss of £40million and that’s before the academy.
“I think probably on the PSR basis, Spurs are probably breaking even or even making a small profit.”
Daniel Levy will be pleased by Tottenham PSR development
That will be music to the ears of Daniel Levy as he continues to try and make Spurs an attractive prospect off the pitch for potential investors.
The club are continuing to rake in a huge amount of cash after generating revenue of £549.2million last season, making them the eighth-richest club in the world [Evening Standard].
They earn more than £105million per year in match-day income and have also benefited from hosting music concerts, NFL and rugby matches at the Tottenham Hotspur Stadium.
Not having any issues regarding PSR hanging over their head, which can’t be said about a number of their fellow Premier League clubs, will also provide Spurs with some flexibility in the transfer market.
While they have had a decent first season under Ange Postecoglou, they will be looking to strengthen this summer and push up the table during the next campaign.
The hard work that’s going on behind the scenes to eke out every bit of extra cash available could provide an extra boost to the transfer kitty for the Australian.
If they can also secure a place in the Champions League this season, that will make their recruitment drive much easier financially and make them a much more attractive prospect for potential signings.
In other Tottenham news, Stan Collymore is spot on about an “outrageous” Spurs financial development.
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