Tottenham make £6.6m loss despite record revenues
November 11, 2010
Tottenham made a £6.6m loss after tax for the year ending 30 June 2010 following the investment in a squad that clinched fourth place in last season’s Premier League and a place in the Champions League.
Increased prize money for the north London club’s highest position since 1990 contributed to record revenue of £119.8m in the annual report released today, but the team could not match last year’s £23.2m profit after buying players including Sébastien Bassong, Peter Crouch and Younes Kaboul. Profits before player trading were £22.7m.
Still, qualification for the lucrative Champions League was expected to boost income further this season. “We are benefiting now from our investment to date in the first-team squad,” the chairman Daniel Levy said.
Tottenham said total income was up 6%, despite a lack of European competition, due to a season of sold-out home matches and increased broadcast revenue.
But that lack of European midweek matches contributed to a drop in sponsorship and corporate hospitality income to £25.8m from £27.4m, while revenue from ticket sales dropped by a similar amount for the same reason even though all 38 Premier League matches at the 36,310-seat White Hart Lane stadium were full.
Since 30 June, Tottenham have added William Gallas, Stipe Pletikosa, Sandro and Rafael van der Vaart to their squad for around £20m. That expense will feature in next year’s results, although Tottenham should compensate for that in Champions League income.