Financial Results - Year End June 30, 2021

[TonySoprano]

I always think these results show the ceaseless loyalty of our fanbase. We're the only one of the top 10 earning clubs that consistently wins absolutely fuck all. Yet we're up there in revenue with clubs that win trophies nearly every year.

Our returns on the pitch are actually abysmal compared to our results off the pitch which are broadly speaking pretty good.

 

[FightingIllini]

Swiss Ramble brilliant as always, worth clicking through to read the whole thread which gives a great 360 degree picture.

In broad strokes the takeaway is pretty simple. In order to grow our revenue back to, let alone exceeding, what it was during peak Poch, there is no other option besides better results on the pitch. This is true directly via Champions League income, which is a massive differentiator, but also more indirectly via matchday revenue and commercial deals all of which scale to a club's ambition in putting stars onto the pitch and playing in the highest profile games.

Thankfully, the other clear takeaway is that we're in very rude financial health so long as full capacity crowds remain allowed, and we have lots of excess fiscal capacity to push our way up the table. The note that our financing on the stadium averages a 22 year term at 2.7% interest is a key point, that's brilliant, we're in great shape there.

From a certain perspective the notion of hiring Conte and going wild in January is like an up-is-down bizarro world. From a different perspective it's just ENIC very rationally pursuing their raison d'etre from the moment they bought the club - revenue growth uber alles.

The ECL was a hare-brained effort to work around the iron law the ENIC project has now reached: you have to spend money to make money.

 

[Spursidol]

Per Alistair Gold on South Korea tour :

The north London club are the second most followed football team on TikTok, behind only Real Madrid. They recently passed 200 million impressions on the social media platform and 178 million of those were from South Korea, helped by Son's presence.

South Korea has become Tottenham's second biggest e-commerce market behind the UK, with the year to date sales only half of the UK and nearly twice as big as the USA.

Spurs have seized on the opportunity with initiative such as making the postage and packing costs similar to those offered in the UK and both matches in Seoul were watched by crowds mostly wearing one of the club's shirts, many of them the recently-released new season versions.

I knew South Korea was a big market for us, but its huge ........ and I don't see it going away quickly after Son retires - Liverpool still reaping the benefit of being a big team in asia in the 1980's .......

 

[ArtyB]

we have spent almost £400m on players. Player spending is no guarantee of success, and our focus must be on improved recruitment, coaching, fitness and a competitive mindset.

Now we're talking...

 

[enfield1985]

Funnily enough we won't be making the CL final every year... Good news is that we won't be weathering a pandemic every year either.


Well done for ignoring any semblance of context though. :contefacepalm2:

I do not like Levy and think he has made many mistakes in his tenure as chairman but no one can argue that he has not made us more financially stable and he is also ensuring that we generate more revenue in the future. Some people just want ot hate everything about him and make up bs on top of that.

 

[SpiderSpurs]

One of the tabloids reporting that out debt has "rocketed" from 100m to 700m and that it's being explained away by us as "due to covid".

Absolute made-up bollocks.

I think HampshireSpur might be a tabloid journo.

 

[Brian Fantana]

They've never put any money in. It shouldn't be news to anyone yet seems to be every year. It is why people want new owners, but it has been gone over a million times before in the ENIC threads (quite rightly). This is for a chat about the accounts, not for bashing the owners as we have enough threads on that.

Despite the majority of these owners pouring their cash into the club to be a lot less successful than us (in terms of regular league position/qualifying for champions league) so what does that mean? They are also the clubs with the highest wages to turnover ratio so the owners have to put the money in to keep the clubs afloat. Let's see if they have kept doing that over the last 12 months when their accounts come out. Should be revealing.

 

[Guido 🇺🇦]

 

[Guido 🇺🇦]

Chelsea’s last 3 years have seen a 7% drop in revenue, Spurs are 22% down. Fantastic business Daniel, yeah but Covid

Chavs haven't published their accounts for 20/21 yet! The ONLY 2 clubs to do so are us and Man U.

 

[Guido 🇺🇦]

Thanks for posting.

Even though Spurs are only the 2nd club to report, and other clubs will also have been badly hit by covid, good to see the comparisons of key data from Spurs v other clubs 'only partly affected by covid' previous years, Spurs ratios (eg wages/revenues) looked good.

This slide shows how we compared with our continental rivals

For me the main elements are:
1. Very big debt (increased by £100m, not so positive) - Many people will focus on this and position it as a horrendous negative. But fail to recognise it as very long term debt and in short will fail to compute that this debt is totally responsible for taking match day revenue at old White Hart Lane of £40m to what will be £122m, the cost to achieve this uplift of +£80m pa is £20m, so a net uplift of £60m (or an equivalent season spent in CL).

2. COVID - The lack of fans in the stadium has killed our numbers, totally expected and also the same for other Clubs around the World.

3. No CL Football - Another totally predictable outcome is the lost revenue felt by not being in CL.

4. As has been communicated a billion times by the Club we will spend once we moved into the stadium, both money spent in new transfers and wages have both seen massively increased sums (and maybe without COVID we could have spent more here(??))

I think we'll see these results as some of the best in the PL compared to other teams reporting over the same period. Only the teams who qualified for CL would probably post better overall numbers I think. Let's see.

 

[Brian Fantana]

We have a lot of fans that consider a healthy bank account more exciting than success on the pitch

I do wonder if other clubs have such a strange fan base as we do

Do we?

I see people interested to know that we do or don’t have money to spend on players. The only way to do that is read the accounts. I’m glad of the transparency personally. It is the only way we can hold Enic accountable if they do refuse to buy players for whatever reason.

I do agree there is a weird set of football fans generally who are more interested in the finances, transfers etc than what actually happens on the pitch. They are fans who probably don’t live in England or go to games and have grown up playing Football Manager or FIFA and so have a somewhat artificial love or affiliation with the game compared to those who actually go to matches and spend a lot of money getting there and buying stuff in the ground.

 

[Airfixx]

We have a lot of fans that consider a healthy bank account more exciting than success on the pitch

I do wonder if other clubs have such a strange fan base as we do

Do we?

I see people interested to know that we do or don’t have money to spend on players. The only way to do that is read the accounts. I’m glad of the transparency personally. It is the only way we can hold Enic accountable if they do refuse to buy players for whatever reason.

I do agree there is a weird set of football fans generally who are more interested in the finances, transfers etc than what actually happens on the pitch. They are fans who probably don’t live in England or go to games and have grown up playing Football Manager or FIFA and so have a somewhat artificial love or affiliation with the game compared to those who actually go to matches and spend a lot of money getting there and buying stuff in the ground.

Indeed... I couldn't give a shit about our finances beyond wanting to understand why certain things do or don't happen at the club. I used to work in accounts/finance and it (along with other people's money) bores the shit out of me.

Only to add, I find it extremely telling that many that rant about "thievery", "tight-bald-cunts", "anchor tenants" and so on run scared at the sight of ACTUAL concrete facts and figures that in theory ought to prove their ramblings true.
.........I just can't imagine why this might be.


(See our sneering chum(s) posting in this thread yesterday.... He (they) had absolutely no intention of reading any of the articles and just wanted to wave his little Levy out flag in an ignorant fashion.)

 

[TheSpurEst]

Basically the debt is nothing to worry about.

As credit analyst I have been saying that from the very start.

 

[Spursidol]

Is the long term Spurs stadium mortgage fixed fee, or variable? I guess variable could be an issue for Spurs

Spurs bonds have fixed (not variable) interest rates ..... so we are laughing

 

[Spursidol]

Very interesting, thanks mate.

Quick question, how do you hedge interest rate risk? I see this in my translations and I can't quite grasp the mechanics

I've now re-read thread and understand why you asked question.

short answer is no hedging required - its fixed low interest rates on vast majority of debt/bonds, minimal debt not hedged and completely manageable

 

[Spursidol]

Good stuff mate.

Two questions/points though ;

1) I believe (?????) that to satisfy the debt we have to keep £100m in the bank to satisfy the debt.
I could be totally wrong on this though.

2) What happens when the loans mature ?
It's all well and good paying the interest , it's the capital that could be a problem further down the road.

1. Quite possible - usual requirement is to keep one or two quarterly interest payments in bank. But if its £100m its still manageable

2 When bonds mature (first one in 15 years average maturity 23 years I think, the bonds are either repaid (and we have years to accumulate cash and repay) and/or we refinance bonds (ie issue more bonds) at whatever the prevailing terms are. Refinancing is very common


It would not surprise me if in 7/8/9 years time we didn't see the club buy some bonds back to start repayment early. Just depends on how we are doing at the time

 

[RomanzoCriminale]

Damn it, this finally proves the thieves Enic are taking out at least £200 million a year.

 

[Brian Fantana]

Interesting numbers, whilst broadly what was expected, the TV revenues were more 'up' than they were 'down' last year, with some fixtures moved from last year to this year ... that kept the losses easily within a manageable range.

Once again the accounts have confirmed that ENIC hasn't and don't take out one pound from the revenue - not that the haters will believe that - all in all very positive and no doubt a lot better than many of our EPL rivals.

Looking ahead the return to full stadium usage will no doubt see record revenue numbers next June let's not wait until then to spend it.

Well, they’ve no excuse now. It’s why I posted the accounts. It is all there in black and white!

 

[Spursidol]

I'm guessing that every club is going to be recording a loss, would I be right to think their figures are going to be similar to (or worse than) ours?

I see the Spursaphobic Guardian are running a story with the headline Tottenham announce £80.2m pre-tax loss as debt climbs to £706m.

They seem to be revelling in it, not that that should surprise me. Anyone would think that we were the only club, the only business in debt.

Fun facts: Apple's total debt stands at $112 billion. The total national debt of the United States is $27 trillion

Graudian obviously forgot to mention the 22 year payback period on the debt - so its not a big problem for us for many years.

 

[ArcspacE]

Deceasing profits

Decreasing fan attendance

Ballooning debt

Highest ticket prices in the PL for bottom half quality football on most says

Worst Spurs side player for player since the late 90s

Worst fan/owner relationship since late Sugar

Proven lies and deceit by the Chairman on ongoing basis and complete disregard for fans

Embarrassing lies around ESL ane furlough and still no apology

Millions wasted annually by inept and dysfunctional scouting system

Active rats and agents within the Changeroom undermining squad integrity



Yeah - numbers look great..