Financial Results y/e June 2017

[Colonel Dax]

Don't we have a new stadium to pay for?

Just asking like.

Stadium financing comes mostly from loans. We can't over-spend on day to day expenditure obviously, but the recent increase in revenue means we should have some room for manoeuvre with the wage bill.

 

[thebenjamin]

Don't we have a new stadium to pay for?

Just asking like.

Debt shouldn't come into that equation as long as you're turning over enough. United are far more in debt than we will ever be, for example.

 

[tottenmal]

So an extra 55m from the TV deal. 14m from commercial. And an extra 28m from match receipts and prize money. Next years results with the new AIA deal, nike, Wembley and improved UEFA money is going to be interesting.

And our wage bill as of last year was 126m. So a lot of headroom to play with even if we keep it at 50%.

 

[coy-spurs1882]

this part interests me although it may mean nothing:

The Directors consider the individual intangible assets relating to four (2016: two) members of the playing squad to be material to the financial statements and note the combined carrying amount of these totalling £51,301,000 (2016: £31,648,000). The cost will continue to be amortised over the remaining contract length which is an average of three and three quarter years

so does it mean that the number of key players in the management's view increased to four compared to last year?

 

[thebenjamin]

Nice work if you can get it

@SwissRamble: #THFC highest paid director, almost certainly Daniel Levy, received total remuneration of £6.0m in 2016/17 (up from £2.8m the previous season). Wow.

 

[DogsOfWar]

Nice work if you can get it

@SwissRamble: #THFC highest paid director, almost certainly Daniel Levy, received total remuneration of £6.0m in 2016/17 (up from £2.8m the previous season). Wow.

Yeah, but still less than our highest paid players and I bet his hours/workload are significantly longer/harder.
He will have doubled our income in the space of 2 seasons which is the business equivalent of winning the league and the CL so is welcome to it.

 

[thebenjamin]

Yeah, but still less than our highest paid players and I bet his hours/workload are significantly longer/harder.
He will have doubled our income in the space of 2 seasons which is the business equivalent of winning the league and the CL so is welcome to it.

Not disputing that but quite the pay rise to more than double your money in 12 months

 

[ComfortablyNumb]

Not quite, no. All costs associated with the stadium will be spread across the useful life of the stadium (in accounting terms that may be set as 99 years or something similar). So the £800m cost (let's go with that figure as an example) will be spread over 99 accounting periods, meaning only £8.1m or so hits the accounts each year as a cost.

That's a very simplistic way of looking at it, but hopefully explains your confusion.

Not sure about that. I don’t think we expense depreciation on buildings. So my accountant brother says, anyway.

 

[SpartanSpur]

So a bit of digging showed Liverpool's turnover to be £364m for 16/17, so the gap is closing. They only had Europa for that season but did benefit from the new stand.

This season they have CL, but we have new sponsorship deals and the increased attendance, could be tight.

Gooners for the same period was £424m

 

[Dinghy]

this part interests me although it may mean nothing:


so does it mean that the number of key players in the management's view increased to four compared to last year?

I think that this relates to players bought and their on the books values... So now including Sissoko & Janssen... (Added to Son & Toby.)

 

[Lilbaz]

None of this is a surprise. The figure that stands out is the 126 million pound wage bill. It's an increase from the previous year, but not commensurate with the growth in revenue. We currently stand at 41% wage-to-turnover, which is much lower than what we were operating at in the earlier part of the decade. With the new stadium revenue, coupled with increased sponsorship deals, there's going to be significant pressure to increase the wage bill to keep players content.

Our turnover increased by about a 33% and wage bill by 26%.
We signed aurier, moura and foyth after. If toby had signed it would be even more.

Either way we hopefully should be getting better contracts to keep our best players.

 

[Krule]

BBC Report...

Tottenham financial figures: Spurs report record £306m revenue
http://www.bbc.com/sport/football/43628485

 

[DogsOfWar]

Not disputing that but quite the pay rise to more than double your money in 12 months

I'm not sure it will be an actual pay rise, I suspect it will be bonus payments based on financial performance.
In the past our growth has been steady and he's paid himself around the £2 million mark.
But last year to increase turnover by 50% and deliver a profit of around 15%, whilst staying competitive, is remarkable.

 

[Hoops]

Wow 300m before Wembley. So easily past 400 in new stadium, and meaning our wage bill can go up to 200m and still run at 50-55% of turnover. Making us genuinely competitive.

We have stadium and tv rights. Just need more commercial deals. United are pulling in 250m of sponsorship alone

 

[Spurs 1961]

We have stadium and tv rights. Just need more commercial deals. United are pulling in 250m of sponsorship alone

This is certainly were the big money is. So the focus, enhanced with the new stadium, NHL etc., is to build the global brand. Liverpool do well on the back of the 70's and 80's when they were known all over Europe; ManU have been successful since the 1960's; Arsenal for much of the Premier League era. It will take us a few more years to get to those sort of levels but will require wining some trophies, staying high profile in the CL and having players who are exciting top level stars ... Kane and Dele in dfiferent ways tick that last box.

 

[rocklink]

The report states that "the highest paid director received total renumeration of £6.013m". Levy would be that highest paid director and that figure has more than doubled from the £2.843m he received in 2016.

 

[Mattspur]

If anyone at the club deserved a pay rise it’s Levy. I don’t see how anyone can begrudge him getting it. How the club has transformed under his leadership is astonishing. Puts him in line with our players.

 

[markiespurs]

I saw £22m ? . Whatever gate receipts will be huge in next accounts. 68 k average gate plus 4 bumper CL games.

It will be offset a bit though by the loss of Catering revenue and possibly merchandise sales.

Going to be an interesting set of financials next year because of playing at Wembley

 

[yankspurs]

Looks like we're sitting in great position. However, we will have to repay a pretty hefty loan within 5 years...

 

[DogsOfWar]

This is certainly were the big money is. So the focus, enhanced with the new stadium, NHL etc., is to build the global brand. Liverpool do well on the back of the 70's and 80's when they were known all over Europe; ManU have been successful since the 1960's; Arsenal for much of the Premier League era. It will take us a few more years to get to those sort of levels but will require wining some trophies, staying high profile in the CL and having players who are exciting top level stars ... Kane and Dele in dfiferent ways tick that last box.

Part of the genius of the multi-purpose stadium is that it will not only provide a load more income all year round from NFL and concerts but also provide fantastic marketing for the football club.

The global American football fan base will become aware of us, anyone who listens to stadium filling artists will become aware of us. The stadium will become a brand like Wembley and our club will be part of that.

As a result I think we can grow our commercial revenue independently of success on the pitch, however the two usually go hand in hand, so as we make more commercial revenue off the pitch we become more successful on it which, in turn, creates even more commercial success. A bit like City but without the questionable deals.

If this perfect storm works out Levy may have found a way to catch the likes United Etc within the next 5 years. And, if he does, he can pay himself whatever he likes as I never believed that could happen in my lifetime.