Interim Results

[bigturnip]

Shame that nobody informed DL that Inter Milan wasn't a two-legged tie, but at least the numbers are looking good, even if he doesn't know what we're up to on the pitch.

http://www.tottenhamhotspur.com/uploads/assets/docstore_new/interim_results310311.pdf


Chairman’s Statement

Financial Results

I am pleased to announce the financial results for the six months ended 31 December 2010. Revenue has seen an increase of 49% from the same period of last year at £79.8m (2009: £53.5m).

Increased revenue and sensible financial management has resulted in a profit from operations before football trading and amortisation for the period of £18.3m (2009: £4.9m).

Participation in this season’s UEFA Champions League contributed significant increases in revenue across the commercial areas of the Club. Notably, Cup competition income and gate receipts increased from £1.9m (for a period during which the Club was not competing in Europe) to £20.3m, despite an early exit from the Carling Cup. Merchandise benefitted from UEFA Champions League participation and saw a 22% increase.

Media and Broadcasting revenues stayed largely consistent with a small rise from £18.6m to £21.1m which reflects the incremental income from the current broadcasting deal.

Consistent with the prior period, Premier League gate receipts rose marginally to £10.8m (2009: £10.6m) as we continue to sell out stadium capacity at 36,240.

Sponsorship and Corporate Hospitality revenue has increased 27% from £12.7m to £16.0m as a result of the innovative split of the shirt sponsorship inventory and Champions League matchday income.

Operating expenses before amortisation of intangible assets have increased by 25% which reflects the size, strength and depth we retained in our squad and which served us well as we competed at the highest level in our first season in the Champions League.

Total non-current assets continued to increase, underlying the on-going long term investment in the Club’s future, in particular the new Training Centre construction.

The current debt profile continues to reflect the significant property holdings acquired as part of the Northumberland Development Project. These loans are underpinned by specific property assets and planning gains. The Board considers this level of debt to be manageable and in line with capital growth plans.

Net assets increased, in the main due to the conversion of the Convertible Redeemable Preference Shares into Ordinary Shares. This also led to the release of a credit of £4.2m to Finance Income which would have arisen over the three-year redemption period had the shares not been converted
early. The result was a 19% increase in net assets to £84.8m and a retained profit for the period of £4.2m from a loss of £6.1m in the same period in 2009.

On the pitch

We have hosted one of the largest squads in the Premier League during this period. It is important to create a healthy balance in any squad between competition for places and for players to play consistently. Whilst this large squad eased our progress in the Champions League, we shall continue to look to streamline our squad where appropriate. There has, however, been less movement in the transfer market than we have seen for many seasons and this has resulted in a number of our first team players going out on loan.

Extended contracts were agreed with First Team players Benoit Assou-Ekotto, Luka Modric and Kyle Walker; Development Squad players John Bostock, Nathan Byrne, Thomas Carroll, Steven Caulker, Jake Livermore, Jake Nicholson, Dean Parrett and Danny Rose and Academy players Ryan Fredericks and Harry Kane.

During the summer we signed Rafael van der Vaart, William Gallas, Stipe Pletikosa (on loan), Sandro (from our Partner Club Internacionale) and re-signed Simon Dawkins.

Dorian Dervite and Adel Taarabt were sold and Anton Blackwood was released. We wish them well for the future.

Pre-season the Club trained and played against our Partner Club, San Jose Earthquakes in California USA. The match, televised by ESPN, attracted their single largest viewing figure with a record one million viewers. The team then went on to participate in the Barclays Football Challenge in New York.

We made our debut in the UEFA Champions League against BSC Young Boys and were successful in our Group Stage matches which included a memorable hat-trick by Gareth Bale against Inter Milan and an equally thrilling second leg at the Lane. Our win against Werder Bremen secured our qualification for the last 16.

Outside of this period strong performances home and away against AC Milan saw us progress to the Quarter Finals - a remarkable achievement in our first UEFA Champions League appearance.

Off the pitch

The Club has made solid progress with its investment in the future growth of the Club’s facilities – the new Training Centre at Enfield is halfway through construction and on target to be opened in the summer of 2012. Construction work began on the main building of the new Training Centre in September 2010 and its progress can be tracked on the Future Plans section of the Club website.

Our position with regard to the viability of the Northumberland Development Project remains unchanged from the year end. The Club continued to consider all options for the development of a new stadium with increased capacity. Planning permission, subject to the completion of a S106, was granted during this period for the Northumberland Development Project. The Club participated in the bid process for tenancy of the Olympic Stadium site post the Olympics. The Club was not successful
in being selected as the preferred bidder for the Olympic Stadium and is now reviewing the process along with working constructively with Haringey Council and the Mayor of London to see if it is possible to enhance the feasibility of the current planning permission.

We welcome the recent announcement that a Mayoral Development Corporation is proposed for Haringey. This is a positive first step towards attracting investment into an area which is one of the most deprived in London.

An increased capacity stadium is a vital element of the growth of the Club. Our waiting list for season tickets is currently at 35,500, almost the capacity of our current stadium. Whilst a larger stadium will result in greater revenue generation, it is arguably more important that we seek to accommodate the next generation of supporters and thereby ensure the future long-term growth and success of our Club.

The Tottenham Hotspur Foundation continues to go from strength to strength and during this period we became the first ever football club community scheme to run a University degree when our Applied Sport and Community Development degree was validated in July 2010.

Our Football Club Board was joined by Darren Eales in June 2010 as our Director of Football Administration and in December by our new Director with responsibility for commercial operations, Charlie Wijeratna. Additionally we welcomed Kevan Watts as a Non-Executive Director alongside Sir Keith Mills to our plc Board.

Summary and Outlook

Once again I am delighted to be able to report on a start to a season which saw us competing well and at the highest level.

We have all seen the many benefits that competing in the UEFA Champions League brings us, in what has been a truly memorable and enjoyable season to date.

The statistics will show how fiercely competitive the Premier League now is. We shall look back and be disappointed with our form against clubs in the bottom quarter of the table if we fail to qualify for the UEFA Champions League at the end of this season. It has been in these fixtures where we have taken fewer points than any other team in the Premier League and this is the anomaly in what has otherwise been one of our greatest ever seasons.

In our first season in Europe’s elite competition, we now find ourselves in the Quarter Finals playing Real Madrid, with a squad which has produced entertaining football and won the Club new fans around the world.

Next season sees the beginning of monitoring for the introduction of the Financial Fair Play Regulations. If applied as they are intended, these will have a profound impact in respect of overall wage bills and spending on transfers. Increased income generation through club activities will be paramount to the future success of the Club. Historically and currently we comply with these regulations.

We also await the outcome of the EU Ruling on the future of media rights sold by the Premier League. The Premier League has indicated that it will seek to protect the value of UK rights which account for some 60% of the global value, but it is only prudent that we remain mindful of the potential impact any ruling could have on the ability of the Premier League to monetise these rights internationally.

Our first half figures reflect a strong performance, buoyed by the contribution from our participation in the UEFA Champions League. Our investment over the years in the First Team has produced our recent successes. Our challenge going forward will be to continue our success on the pitch, to create and produce greater revenue streams and to invest prudently in capital growth projects, alongside controlling our operating expenses.

I was delighted that the Club topped the Premier League’s Club Charter table in a recent review by the Football Supporters Federation. We constantly seek to deliver not only excellent standards of customer service, but also to be accessible and responsive to our fans and this was a welcome recognition of our efforts.

As always I am keen to acknowledge and thank all our stakeholders, Harry, the coaches, staff and fans, all of whom contribute to the overall success and strength of the Club.

D P Levy

31 March 2011

 

[kishman]

49% increase in revenue, is good to hear.

Our position with regard to the viability of the Northumberland Development Project remains unchanged from the year end. The Club continued to consider all options for the development of a new stadium with increased capacity. Planning permission, subject to the completion of a S106, was granted during this period for the Northumberland Development Project. The Club participated in the
bid process for tenancy of the Olympic Stadium site post the Olympics. The Club was not successful in being selected as the preferred bidder for the Olympic Stadium and is now reviewing the process along with working constructively with Haringey Council and the Mayor of London to see if it is possible to enhance the feasibility of the current planning permission.

Hmmm.

 

[dav3j]

49% increase in revenue, is good to hear.

Our position with regard to the viability of the Northumberland Development Project remains unchanged from the year end. The Club continued to consider all options for the development of a new stadium with increased capacity. Planning permission, subject to the completion of a S106, was granted during this period for the Northumberland Development Project. The Club participated in the
bid process for tenancy of the Olympic Stadium site post the Olympics. The Club was not successful in being selected as the preferred bidder for the Olympic Stadium and is now reviewing the process along with working constructively with Haringey Council and the Mayor of London to see if it is possible to enhance the feasibility of the current planning permission.

Hmmm.

That made me go hmmm too... Can't quite be as dead in the water as Levy reckoned if he's now "working constructively with Haringey Council and the Mayor of London" to sort out the NDP, I think.

 

[Adam456]

We'll obviously see less revenue in the second half - unless we make the final of the CL but it shows just where we could be with a new stadium

.....and I see DL making the point about the new regs - if applied correctly we'll be fine but should see some others in a bit of trouble

 

[MattyP]

Don't see the appropriateness of having a little dig at the results against bottom quarter teams in a set of financial statements.

 

[bigturnip]

We'll obviously see less revenue in the second half - unless we make the final of the CL but it shows just where we could be with a new stadium

.....and I see DL making the point about the new regs - if applied correctly we'll be fine but should see some others in a bit of trouble

We've got a minimum of 4 Champions' League matches in the second half, all worth more than any of the 7 we played in the first half, so I'm not sure we will see less revenue from their. Season ticket renewals also go through in May/June, so revenues have traditionally been much higher in second half results.

 

[Akqayid]

so, DL is basically saying give me money and support for NDP, and I'll stop my (rightful, both legally and personally) appeal?

We'll have a spanking new ground in N17 by 2015 IF AND ITS A FECKING BIG IF, IF we have a run of 1/2 more years creating that kind of revenue to pay for it, all the ground, all the players and the players coming in wages.

But we need 4th by the 20th may. We need it bad. So much depends on Wigan, Stoke, City, Chelsea, Arsenal, Birmingham, Blackpool. And most are at home. Its a great time to be a Spurs fan, and Tuesday cannot come quicker enough for some of us that are going, But Sunday is bigger, win, two weeks wends is even bigger. Go out gracefully to Madrid, finish 4th. Thats what is needed now.

 

[tRiKS]

Don't see the appropriateness of having a little dig at the results against bottom quarter teams in a set of financial statements.

agreed. Its a fact noone needs reminding of.

pre-justification for letting Harry walk out to England and giving the best job in football to Jose Mourhino

 

[Akqayid]

agreed. Its a fact noone needs reminding of.

pre-justification for letting Harry walk out to England and giving the best job in football to Jose Mourhino

Eek

 

[bigturnip]

Its a great time to be a Spurs fan, and Tuesday cannot come quicker enough for some of us that are going, But Sunday is bigger, win, two weeks wends is even bigger. Go out gracefully to Madrid, finish 4th. Thats what is needed now.

Oh dear. :roll:

 

[andyw362]

Things I noticed is this.

Obviously income has risen by almost half, but we only have 8m in cash and around 80m odd in current liabilities. Some of that will be operating expenses but alot will also be instalments from previous transfers. Current assets - receivables is only 30m.

Also, the operating costs for the squad is higher than Levy would like. Operating costs as in we have a large wage bill and need to trim it. Seasons past we would have made alot more net profit on 80m turnover. So ideally we need to trim the cost base somewhat in the summer before we bring some new faces in.

There is another 6 months left though of the year and I think the majority of CL TV money gets paid late on.

I reckon we will end the year on around 160m or so. Maybe make 30m or so EBITA and god knows how much after that.

Excellent results considering the facilities the club has but next to Arsenal it makes painful reading.

 

[MattyP]

We've got a minimum of 4 Champions' League matches in the second half, all worth more than any of the 7 we played in the first half, so I'm not sure we will see less revenue from their. Season ticket renewals also go through in May/June, so revenues have traditionally been much higher in second half results.

No, that is not correct.

The season ticket renewals, even if they take place in May/June, will not be recorded as revenue in the second half of this year, they will sit in the balance sheet as deferred revenue as they relate to future periods, not the current one.

We will see an increase in revenue in the second half of the year, but not for the reason you mention. It is because performance payments, i.e. how much we get for where we finish in the league, plus potentially any prize money from the Champions League, will only be confirmed once those competitions are completed.

In the case of the Champions League, the club probably would have already accrued the prize money associated with whatever stage we have "completed" by the interim period.

 

[andyw362]

No, that is not correct.

The season ticket renewals, even if they take place in May/June, will not be recorded as revenue in the second half of this year, they will sit in the balance sheet as deferred revenue as they relate to future periods, not the current one.

We will see an increase in revenue in the second half of the year, but not for the reason you mention. It is because performance payments, i.e. how much we get for where we finish in the league, plus potentially any prize money from the Champions League, will only be confirmed once those competitions are completed.

In the case of the Champions League, the club probably would have already accrued the prize money associated with whatever stage we have "completed" by the interim period.

Spot on. CL TV money is weighted to the back end of the season I believe. I reckon we will be around the 160million mark altogether.

The problem is trying to guess how much will be available for new players. I would say 15-25m net of player sales. not a great deal.

 

[Akqayid]

Oh dear. :roll:

Why oh dear?

Look, lets be pragmatic here - In you rhearts of hearts you want to go crashing out in the QF/SF/Lose the final in glorious defeat and finish 5th

Hand on heart we wont win will we so we need to taste it again, next year, surely that is sensible? NO?
Build for the next 15 years NOT go out in a blaze of sorrow and sadness one year

 

[sloth]

No, that is not correct.

The season ticket renewals, even if they take place in May/June, will not be recorded as revenue in the second half of this year, they will sit in the balance sheet as deferred revenue as they relate to future periods, not the current one.

We will see an increase in revenue in the second half of the year, but not for the reason you mention. It is because performance payments, i.e. how much we get for where we finish in the league, plus potentially any prize money from the Champions League, will only be confirmed once those competitions are completed.

In the case of the Champions League, the club probably would have already accrued the prize money associated with whatever stage we have "completed" by the interim period.

I'm not entirely sure, but I think it all gets paid out at the end of the campaign, but at each stage we'll know what we're going to receive as a basic for getting through each round.

I remember reading somewhere that the CL pot is divvied up according to which League you come from, how many and how far teams from that league progress (so Arsenal will get a smaller share because they went out before the quarters), the size of our domestic market and which position the club concerned finished in their league the previous season.

Which basically suggests that no money can be paid out until the season finishes. For this reason I'd hope that we'll see a significant increase in CL revenue in the second half results.

 

[bigturnip]

Why oh dear?

Look, lets be pragmatic here - In you rhearts of hearts you want to go crashing out in the QF/SF/Lose the final in glorious defeat and finish 5th

Hand on heart we wont win will we so we need to taste it again, next year, surely that is sensible? NO?
Build for the next 15 years NOT go out in a blaze of sorrow and sadness one year

We are 3 victories away from winning the biggest club competition in the world and you are really suggesting that we should just throw that all away so we can potentially have another crack at it next year?

I for one would be putting the strongest team out against Real Madrid and telling the players to put every last ounce of sweat into winning the tie.

If it's not about the glory then, pray tell, what is it about?

 

[bigturnip]

No, that is not correct.

The season ticket renewals, even if they take place in May/June, will not be recorded as revenue in the second half of this year, they will sit in the balance sheet as deferred revenue as they relate to future periods, not the current one.

We will see an increase in revenue in the second half of the year, but not for the reason you mention. It is because performance payments, i.e. how much we get for where we finish in the league, plus potentially any prize money from the Champions League, will only be confirmed once those competitions are completed.

In the case of the Champions League, the club probably would have already accrued the prize money associated with whatever stage we have "completed" by the interim period.

I stand corrected, I should read the figures more closely, I know we always have more revenue in the second half results, I just always assumed it was because season ticket sales were done in May/June.

 

[SlickMongoose]

I stand corrected, I should read the figures more closely, I know we always have more revenue in the second half results, I just always assumed it was because season ticket sales were done in May/June.

Premier league prize money will do that, I believe.

 

[MattyP]

I'm not entirely sure, but I think it all gets paid out at the end of the campaign, but at each stage we'll know what we're going to receive as a basic for getting through each round.

I remember reading somewhere that the CL pot is divvied up according to which League you come from, how many and how far teams from that league progress (so Arsenal will get a smaller share because they went out before the quarters), the size of our domestic market and which position the club concerned finished in their league the previous season.

Which basically suggests that no money can be paid out until the season finishes. For this reason I'd hope that we'll see a significant increase in CL revenue in the second half results.

You are correct that no cash will physically be paid, but the prize money at each stage of the competition is known and can and will be accrued.

It'll only be the complex multiplier that you mention, that for sure can only be taken in the second half of the season, but the basic prize pot will have been accrued - it's in someone's sig (I can't remember who's though).

The physical cash element has no bearing on the profit and loss account.

 

[SlickMongoose]

What's with £86m for trade payables? Anyone know?