Highest Profit ever from an English Football Club

0-Tibsy-0 · Apr 29, 2015

I know this won't please those who feel Levy is the devil in regards to our football Club, but Spurs last year recorded the highest ever profit from an English football Club. We are clearly being set up for a new stadium and to grow more organically and compete with the free spending ultra rich after saving for this huge investment for Stadium development and the new training facilities/academy.

http://www.theguardian.com/football/2015/apr/29/premier-league-finances-club-by-club

TOTTENHAM HOTSPUR
Accounts for the year to 30 June 2014

Ownership Enic International Limited, registered in the Bahamas (tax haven), owns 85% of Spurs. Joe Lewis, resident in the Bahamas, has the controlling 70.6% ownership of Enic; trusts of which chairman Daniel Levy and family are the beneficiaries own the other 29.4%.

Turnover 6th highest, £181m (up from £147m in 2013)

Match receipts£35m

TV and media£90m

All commercial activities£56m

Wage bill 6th highest, £100m (up from £96m in 2012)

Wages as proportion of turnover 55%

Profit before tax £80m (up from £4m in 2013)

Net debt Nil;£3m in bank

Interest payable £7m

Highest-paid director £2.17m paid to Daniel Levy

State they’re in

Spurs’ finances speak of a club making ready to build the long-planned new stadium and two figures leap out. The first is the £80m profit, the largest ever made by an English football club. Spurs’ TV income was up £32m, they held the wage increase to only £4m, and put £35m in the bank. Such riches rather undermine Spurs’ plea they could not afford £16m agreed for public infrastructure works, which Haringey council waived.

The second remarkable figure is chairman Daniel Levy’s salary£2.17m – presumably for all of the above.

-----------------------------------------------------------------------------------------------------------------------
Are we happy with the direction in which the Club is now being taken: investment in facilities, academy, stadium and back room staff rather than a large gross outlay on players? In the hope we will be able to compete financially through this approach and develop assets through our own Club?

Or do you think that 80 million should have been spent on a couple of worldies (if we could attract them in the 1st place...)?

talkshowhost86 · Apr 29, 2015

0-Tibsy-0 said:
I know this won't please those who feel Levy is the devil in regards to our football Club, but Spurs last year recorded the highest ever profit from an English football Club. We are clearly being set up for a new stadium and to grow more organically and compete with the free spending ultra rich after saving for this huge investment into Stadium and the new training facilities/academy.

http://www.theguardian.com/football/2015/apr/29/premier-league-finances-club-by-club

TOTTENHAM HOTSPUR
Accounts for the year to 30 June 2014

Ownership Enic International Limited, registered in the Bahamas (tax haven), owns 85% of Spurs. Joe Lewis, resident in the Bahamas, has the controlling 70.6% ownership of Enic; trusts of which chairman Daniel Levy and family are the beneficiaries own the other 29.4%.

Turnover 6th highest, £181m (up from £147m in 2013)

Match receipts£35m

TV and media£90m

All commercial activities£56m

Wage bill 6th highest, £100m (up from £96m in 2012)

Wages as proportion of turnover 55%

Profit before tax £80m (up from £4m in 2013)

Net debt Nil;£3m in bank

Interest payable £7m

Highest-paid director £2.17m paid to Daniel Levy

State they’re in

Spurs’ finances speak of a club making ready to build the long-planned new stadium and two figures leap out. The first is the £80m profit, the largest ever made by an English football club. Spurs’ TV income was up £32m, they held the wage increase to only £4m, and put £35m in the bank. Such riches rather undermine Spurs’ plea they could not afford £16m agreed for public infrastructure works, which Haringey council waived.

The second remarkable figure is chairman Daniel Levy’s salary£2.17m – presumably for all of the above.

Are we happy with the direction in which the Club is now being taken: investment in facilities, academy, stadium and back room staff rather than a large gross outlay on players? In the hope we will be able to compete financially through this approach and develop assets through our won Club?

Or do you think that 80 million should have been spent on a couple of worldies (if we could attract them in the 1st place...)?

For me the key stats are Turnover (6th) and Wage Bill (6th). This lends further credence to the theory that should be our benchmark in terms of league position, so if we finish 6th it is reasonable, if we finish 5th it is good and anything below 6th would be poor.

The Scarecrow · Apr 29, 2015

I like this. I'd rather we invest money in our future than spend them on players who, based on our dealings the last few windows, most likely will flop.

Mullers · Apr 29, 2015

I've never had any doubts about the way the club is run financially away from the football field, my criticisms of Levy are to do with changing strategy all the time, changing coaches to often, poor transfer strategy and unrealistic expectations of what he expects from his head coaches.

allatsea · Apr 29, 2015

Did we receive the Bale money in one financial year and then spend it in the next financial year ? If so these figures are very misleading as we need to net off the two financial years to see a true position.

danielneeds · Apr 29, 2015

The stadium is the key to the future of the club. If we have to suffer a few lean years to get it paid for, so be it.

As for Levy's salary, it's probably lower than Freidel's. Who does more important work for the club?

Blake Griffin · Apr 29, 2015

good, i hope we save it for when we're in a better position to spend.

yankspurs · Apr 29, 2015

It's great to have the profit, and yes our turnover and wage bill do look like we're about where we should be and were punching above our weight previously. The problem is that, in order to get better sponsorship deals to help fund the stadium, we need to have a better product on the field as well as marketable players. Again, it all boils down to the one very simple economic theory. You gotta spend money to make money.

Also, there's the fact that Daniel has a VERY itchy trigger finger and talks the talk but when push comes to shove, he doesnt walk the walk.

yankspurs · Apr 29, 2015

danielneeds said:
The stadium is the key to the future of the club. If we have to suffer a few lean years to get it paid for, so be it.

As for Levy's salary, it's probably lower than Freidel's. Who doesire important work for the club?

To be fair, I dont think Brad is making £3m a year right now from Spurs. Maybe making that combined between his work with Fox, UA and the club, though.

Mullers · Apr 29, 2015

danielneeds said:
The stadium is the key to the future of the club. If we have to suffer a few lean years to get it paid for, so be it.

As for Levy's salary, it's probably lower than Freidel's. Who doesire important work for the club?

We've been suffering lean years for most of our history, I don't think the stadium is that key at all, it is key to get things right on the football field and stop wasting money on mediocre and shit players.

sloth · Apr 29, 2015

Being the sixth best at something doesn't mean you always come sixth. This is because of random variation. It means over several years you'll on average be sixth. Therefore finishing a bit better or worse is to be expected and not worthy of condemnation or praise.

In our case we're not sixth best, but pay sixth highest wages. Because ranking teams by wages paid takes no account of relative wages (you could pay £1 less than the team in 5th, or £1bn less and you wouldn't distinguish between), it's better to link £s to points to benchmark performance. If you do you'll see in theory it's far harder to randomly do better than 6th, than it does worse.

However that assumes a fixed relationship between £s and points, but what if there is a law if diminishing returns so that as you spend more you get fewer points for your buck? In fact for obvious reasons this is what happens. That's why our goal should be to spend the optimum not the maximum, and why spending surplus £s on things other than wages makes sense once past a certain point, as that will secure you more points per £ in the long run!

This equation Btw is cause for optimism for a club like us because it gives hope that we can compete even with a much lower wage bill. It says we can aspire to be champions even without a sugar daddy.

chinaman · Apr 29, 2015

0-Tibsy-0 said:
I know this won't please those who feel Levy is the devil in regards to our football Club, but Spurs last year recorded the highest ever profit from an English football Club. We are clearly being set up for a new stadium and to grow more organically and compete with the free spending ultra rich after saving for this huge investment for Stadium development and the new training facilities/academy.

http://www.theguardian.com/football/2015/apr/29/premier-league-finances-club-by-club

TOTTENHAM HOTSPUR
Accounts for the year to 30 June 2014

Ownership Enic International Limited, registered in the Bahamas (tax haven), owns 85% of Spurs. Joe Lewis, resident in the Bahamas, has the controlling 70.6% ownership of Enic; trusts of which chairman Daniel Levy and family are the beneficiaries own the other 29.4%.

Turnover 6th highest, £181m (up from £147m in 2013)

Match receipts£35m

TV and media£90m

All commercial activities£56m

Wage bill 6th highest, £100m (up from £96m in 2012)

Wages as proportion of turnover 55%

Profit before tax £80m (up from £4m in 2013)

Net debt Nil;£3m in bank

Interest payable £7m

Highest-paid director £2.17m paid to Daniel Levy

State they’re in

Spurs’ finances speak of a club making ready to build the long-planned new stadium and two figures leap out. The first is the £80m profit, the largest ever made by an English football club. Spurs’ TV income was up £32m, they held the wage increase to only £4m, and put £35m in the bank. Such riches rather undermine Spurs’ plea they could not afford £16m agreed for public infrastructure works, which Haringey council waived.

The second remarkable figure is chairman Daniel Levy’s salary£2.17m – presumably for all of the above.

-----------------------------------------------------------------------------------------------------------------------
Are we happy with the direction in which the Club is now being taken: investment in facilities, academy, stadium and back room staff rather than a large gross outlay on players? In the hope we will be able to compete financially through this approach and develop assets through our own Club?

Or do you think that 80 million should have been spent on a couple of worldies (if we could attract them in the 1st place...)?

Can't blame Levy then; at least he's earning less than quite a few of his employees.

Francis Gibbs · Apr 29, 2015

talkshowhost86 said:
For me the key stats are Turnover (6th) and Wage Bill (6th). This lends further credence to the theory that should be our benchmark in terms of league position, so if we finish 6th it is reasonable, if we finish 5th it is good and anything below 6th would be poor.

thats not how you grow a business .....

SteveH · Apr 29, 2015

The Scarecrow said:
I like this. I'd rather we invest money in our future than spend them on players who, based on our dealings the last few windows, most likely will flop.

Could not agree more, picking players outside of the very top echelon is a lottery.

Mind some of the top ones are not all that, Ozil and Di María come to mind.

Francis Gibbs · Apr 29, 2015

0-Tibsy-0 said:
I know this won't please those who feel Levy is the devil in regards to our football Club, but Spurs last year recorded the highest ever profit from an English football Club. We are clearly being set up for a new stadium and to grow more organically and compete with the free spending ultra rich after saving for this huge investment for Stadium development and the new training facilities/academy.

http://www.theguardian.com/football/2015/apr/29/premier-league-finances-club-by-club

TOTTENHAM HOTSPUR
Accounts for the year to 30 June 2014

Ownership Enic International Limited, registered in the Bahamas (tax haven), owns 85% of Spurs. Joe Lewis, resident in the Bahamas, has the controlling 70.6% ownership of Enic; trusts of which chairman Daniel Levy and family are the beneficiaries own the other 29.4%.

Turnover 6th highest, £181m (up from £147m in 2013)

Match receipts£35m

TV and media£90m

All commercial activities£56m

Wage bill 6th highest, £100m (up from £96m in 2012)

Wages as proportion of turnover 55%

Profit before tax £80m (up from £4m in 2013)

Net debt Nil;£3m in bank

Interest payable £7m

Highest-paid director £2.17m paid to Daniel Levy

State they’re in

Spurs’ finances speak of a club making ready to build the long-planned new stadium and two figures leap out. The first is the £80m profit, the largest ever made by an English football club. Spurs’ TV income was up £32m, they held the wage increase to only £4m, and put £35m in the bank. Such riches rather undermine Spurs’ plea they could not afford £16m agreed for public infrastructure works, which Haringey council waived.

The second remarkable figure is chairman Daniel Levy’s salary£2.17m – presumably for all of the above.

-----------------------------------------------------------------------------------------------------------------------
Are we happy with the direction in which the Club is now being taken: investment in facilities, academy, stadium and back room staff rather than a large gross outlay on players? In the hope we will be able to compete financially through this approach and develop assets through our own Club?

Or do you think that 80 million should have been spent on a couple of worldies (if we could attract them in the 1st place...)?

how about we are slightly less profitable, pay slightly more and see if we can challenge for things rather than just have loads in the bank and standstill/go backwards

talkshowhost86 · Apr 29, 2015

Francis Gibbs said:
thats not how you grow a business .....

Where did I say that it was?

You grow a business by improving the infrastructure and spending sensibly. I'm almost certain that, whatever his limitations, Levy and Enic will have grown our business by the time they leave (considering they already have done significantly).

With the new training ground and hopefully the new stadium together with the commercial opportunities that brings that is clearly what we are trying to do.

My point is that whilst our turnover and spending on wages are 6th highest, it's unreasonable to expect us to continuously finish higher than 6th.

I'm not saying 6th is all we should be aiming for, but whilst we're in the position we're in, us fans....yes even you @Francis Gibbs must be realistic about what is achievable.

sweetness · Apr 29, 2015

The £80 mill profit is complete BS. If we exclude player trading, the profit would decrease sharply. Quite possibly all the way down to zero.

Bale's book value in the accounts was much smaller than the eventual selling price, which creates the perception of a "profit". This problem will be compounded by the club's utter failure to re-invest the money properly in 2013. The 14/15 accounts will paint a post-Bale picture with a large wage bill, increasing player amortisation, and nothing else to show for it

talkshowhost86 · Apr 29, 2015

Francis Gibbs said:
how about we are slightly less profitable, pay slightly more and see if we can challenge for things rather than just have loads in the bank and standstill/go backwards

This is definitely not how you grow a business!

spursdon1 · Apr 29, 2015

Francis Gibbs said:
how about we are slightly less profitable, pay slightly more and see if we can challenge for things rather than just have loads in the bank and standstill/go backwards

It's not like a new stadium will cost loads of money or anything.

Francis Gibbs · Apr 29, 2015

talkshowhost86 said:
Where did I say that it was?

You grow a business by improving the infrastructure and spending sensibly. I'm almost certain that, whatever his limitations, Levy and Enic will have grown our business by the time they leave (considering they already have done significantly).

With the new training ground and hopefully the new stadium together with the commercial opportunities that brings that is clearly what we are trying to do.

My point is that whilst our turnover and spending on wages are 6th highest, it's unreasonable to expect us to continuously finish higher than 6th.

I'm not saying 6th is all we should be aiming for, but whilst we're in the position we're in, us fans....yes even you @Francis Gibbs must be realistic about what is achievable.

well your post was saying 6th is our benchmark and it would be reasonable to finish 6th this for me maybe a benchmark but its not reasonable - you benchmark solely to improve.
Levy wants to/believes we should be completing for CL places and he is right maintaining the status quo will only lack eventually to regression. A football club is no different to every other business in that respect.
Where Levy is wrong is by not freeing up cash to invest to assist in achieving those aims from a playing perspective. Its a false economy he is working to because with the right level of investment (doesn't have to be mega bucks) the right manager and the right recruitment CL football is achievable and the return provided in getting it will vastly outweigh the investment if you get your decisions right. This is the only way the club will grow not by having a new training ground, or stadium or commercial ventures as each are a by product of success on the pitch. There is no point having a 60k stadium that you cant fill and commercial opportunities will only go to growing successful clubs.
You can have the best infrastructure money can buy but if your product is poor ............

Obviously it can be a bit of a chicken and egg situation but Levy is paid exceptionally well, as we can see, to get this right and imo he isnt.

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