Spurs Financial Results - Year Ended 30 June 2015

[Spursidol]

http://www.tottenhamhotspur.com/news/financial-results-year-end-30-june-2015-310316/

Financial Highlights
Revenue for the year ended 30 June 2015 was £196.4m, an increase of 9% on the prior year (2014: £180.5m).

Premier League gate receipts were £22.3m (2014: £22.4m). The Stadium continued to sell out for all Premier League home games further underlining the need for an increased capacity stadium to meet demand and satisfy a waiting list for season tickets that was c45,000 during this period and has now risen to over 50,000.

The Club reached the round of 32 of the UEFA Europa League (2014: round of 16) resulting in gate receipts and prize money of £7.1m (2014: £9.2m).

Revenue from the domestic cup competitions earned the Club £4.4m (2014: £3.2m) having reached the final of the Capital One Cup (2014: quarter final).

Television and media revenues rose to £90.5m (2014: £89.5m), as the Club finished a place higher in the Premier League in 5th (2014: 6th).

Sponsorship and corporate hospitality increased significantly to £48.9m (2014: £37.3m).

Merchandising revenue increased by 12% to £12.3m (2014: £11.0m).

Profit from operations excluding football trading and before restructuring and depreciation was £46.7m (2014: £36.0m). Profit for the year after interest and tax was £9.4m (2014: £65.3m).

The Club had net debt at the year end of £20.8m (2014: net funds of £3.2m) and net assets were £183.0m (2014: £183.7m).

Northumberland Development Project (NDP) Update
The progress of the Club’s new stadium scheme has been evident both to visitors to the Lane and those who have logged on to watch the webcam (www.tottenhamhotspur.com/newscheme/stadiumtv), as the Club builds out the basement.

We received planning permission from Haringey Council on 16 December 2015 for the revised updated stadium scheme. We are awaiting a number of further planning confirmations within the next month, including the White Hart Lane station delivery timetable and public realm improvements.

The Club has shown a huge commitment to the area having already delivered over 250 affordable homes on nearby developments and is conscious that the stadium scheme plays a key role as a catalyst for wider regeneration.

We shall continue to provide updates as matters progress.

Player Accommodation Lodge at the Training Centre
Construction has commenced on this facility which will provide high quality accommodation for the First Team and Academy, allowing the Club to provide a controlled, consistent and familiar environment for our players to optimise rest, rehabilitation, recovery and diet alongside our world-class Training Centre.

Outlook
Chairman, Daniel Levy, said: "This financial period saw a consolidation of the squad and substantial progress on capital projects.

“Mauricio and his coaching staff have created a great team spirit in a stable squad that encompasses both experience and youth. The results speak for themselves.

“We are continuing with an ambitious growth strategy. Our player development, on pitch performances, enhancements to our highly rated Training Centre and commencement of the new stadium scheme which will also host NFL, signify an exciting future for the Club.”

Comment :

No detailed accounts are online as yet, so its very difficult to provide any real comment on the clubs announcement.

One piece of good news was the increase in commercial revenue - this is down to Spurs rather than any change in TV income which is mainly the result of PL central negotiation.

The previous year's figures were highly skewed by the profit on Bale's transfer so this year's £9.4m profit after tax and interest (without Bale transfer) is perhaps better compared with the 2013 figure of £1.5m.

In turn this profit after tax and interest reflects the increase in Profit from operations excluding football trading and before restructuring and depreciation of £46.7m (2014: £36.0m), and in turn suggests that the majority of the £16m increase in revenues was not paid out in wages, and some £10m falling to the bottom line.

All these results exclude the sale of the players in summer 2015, a number of whom had high wages, so difficult to tell how current financial results are shaping up.

One interesting figure we might better understand when the full financial statements are online is the net debt of £20.8m, a turnround of £24m from the previous year's positive funds of £3.2m - but it may well simply largely reflect the investment in the new statement out of cash resources given that the increase in net assets broadly reflects the increase in net assets..

 

[Gaz_Gammon]

The Club reached the round of 32 of the UEFA Europa League (2014: round of 16) resulting in gate receipts and prize money of £7.1m (2014: £9.2m).

This is not chump change and is a good revenue driver considering the number of games played. Anyone who bemoans us making the EL needs to look at this return.

 

[yankspurs]

Merch rose 12%?!?!? Damn, the desperation to sling those horrendous homeshirts for months on end worked! Those motherfuckers were like £12 by the end of the season

 

[Always Offside]

This is not chump change and is a good revenue driver considering the number of games played. Anyone who bemoans us making the EL needs to look at this return.

True true. However it's a piss in the ocean in comparison to that other European competition. Title or no title (hopefully title of course) getting THFC's snout in the CL cash trough will see that figure rise significantly. Oink Oink

 

[Spursidol]

http://www.tottenhamhotspur.com/upl...cuments/Annual_Reports/annual-report-2015.pdf
Spurs financial statements to 30 June 2015 are now on OS.

Aside from now knowing we made a £21m profit on player sales (remember the accounts are to 30 June, so before the summer TW). surprisingly little major of interest comes out of the accounts, other than financially its a strong set of results which I guess we might have expected.

A few points to note though :

- The Directors of all companies are required to state why they think that their companies are 'going concerns' . Spurs declaration says that they are 'satisfied' that they can raise the necessary funding. Its a relatively strong statement.

- Note 15 shows that a bank loan taken out in 2003 repayable over 20 years was agreed to be repaid early (triggering an early repayment £m penalty). The loan was secured against White Hart Lane stadium and associated gate receipts - and its early repayment suggests that it was necessary to release the charge against WHL prior to parts of it being knocked down as part of the stadium project,

- Note 16 showed Spurs provided £ 8.6m against player employment contracts, probably a lot against Adebayor's contract, but likely other players as well.

- Note 19 shows that TH repaid £10m of the £40m preference shares issued to Maicon Inc (a Joe Lewis company).

- Note 25 shows Spurs sold Brook House Primary School for £11m, a property developed by Spurs in Tottenham. Spurs cost was £2.6m so we made a useful £8.6m which will be included in the 2015/16 accounts.

Lets wait and see what the Swiss Ramble will make of them - and how they compare to other clubs.

 

[TH1239]

According to the full report, our wage bill was only 100.8 million pounds. That's flat from the previous year. Considering we got Townsend, Lennon, Capoue, Paulinho, Adebayor, Soldado and Stambouli off the wage bill, it's very possible that even with some improved contract extensions, we are looking at a current wage bill that probably hovers closer to 90 million pounds. Given our revenue is likely to increase 55 million pounds additionally in television revenue next season, on top of CL revenue and already concluded player sales (Townsend), we could come close to breaking the 300 million pound turnover barrier with a wage-to-turnover ratio of 30-35%, which is frankly absurdly low (both for us historically and for every club in the league).

All that means we'd have a TON of flexibility this summer to sign a very good player or two and smash our existing wage structure for Kane and Eriksen (inevitable in my opinion).

 

[SlickMongoose]

http://www.tottenhamhotspur.com/upl...cuments/Annual_Reports/annual-report-2015.pdf
Spurs financial statements to 30 June 2015 are now on OS.

Shame we're too poor to buy a decent scanner, that thing's wonky.

 

[Sweech]

Really interested to see the merchandising results from 2016.

With the Son signing we could gain a lot from the Korean market and with a core of our players looking like the new English spine for the national team that could cause an increase in shirt sales, especially for Kane and Alli.

Also wonder if our fantastic season will play a part in revenue increases and if some of our deals had clauses to increase for CL games.

 

[Sweech]

According to the full report, our wage bill was only 100.8 million pounds. That's flat from the previous year. Considering we got Townsend, Lennon, Capoue, Paulinho, Adebayor, Soldado and Stambouli off the wage bill, it's very possible that even with some improved contract extensions, we are looking at a current wage bill that probably hovers closer to 90 million pounds. Given our revenue is likely to increase 55 million pounds additionally in television revenue next season, on top of CL revenue and already concluded player sales (Townsend), we could come close to breaking the 300 million pound turnover barrier with a wage-to-turnover ratio of 30-35%, which is frankly absurdly low (both for us historically and for every club in the league).

All that means we'd have a TON of flexibility this summer to sign a very good player or two and smash our existing wage structure for Kane and Eriksen (inevitable in my opinion).

Contracts can be finicky. I'm also interested to see if (likely we did) we had CL wage boosts in most player's contracts. These boosts can be as big as 50% for some players that trigger whether they're in the CL or not. I doubt our players have some that are that high, and if we do it's probably only for major key players like Lloris and Kane, but it's often a motivating factor for when a team misses CL and all the players take a big pay cut. It's been reported that Arsenal players have clauses like this and it has caused a bit of concern when they flirt with 4th/5th place because players may force a move because of the big wage cut players would take because of it.

 

[Spursidol]

According to the full report, our wage bill was only 100.8 million pounds. That's flat from the previous year. Considering we got Townsend, Lennon, Capoue, Paulinho, Adebayor, Soldado and Stambouli off the wage bill, it's very possible that even with some improved contract extensions, we are looking at a current wage bill that probably hovers closer to 90 million pounds. Given our revenue is likely to increase 55 million pounds additionally in television revenue next season, on top of CL revenue and already concluded player sales (Townsend), we could come close to breaking the 300 million pound turnover barrier with a wage-to-turnover ratio of 30-35%, which is frankly absurdly low (both for us historically and for every club in the league).

All that means we'd have a TON of flexibility this summer to sign a very good player or two and smash our existing wage structure for Kane and Eriksen (inevitable in my opinion).

Think that's waaay too optimistic for 2 reasons

1. The players will expect a big increase for playing CL -if you look back to our previous CL foray our wages shot up, and hardly decreased after our CL season. Think it was circa 25%/45%.

2. Whilst the likes of Kane will not be on Adebayor's £100,000 pw wage, DL will ensure his wages are really increased to ensure we pay a very good wage - its rumoured Kane has had 2 increases this season - to deter other clubs. Ditto Dier, Alli and even more established players like Eriksen.

Then on top of that every PL club will have a similar TV revenue increase - and that will feed a wage hike by itself......which we will need to follow.

So IMO our wage bill is not likely to fall and likely to rise, albeit with higher revenues

And what will happen if we bring in much higher paid players to squad cohiesiveness ? Won't that upset what we have achieved since sidelining overpaid but under achieving players ?

 

[Spursidol]

Shame we're too poor to buy a decent scanner, that thing's wonky.

Scanned sideways after too many beers !

 

[Spursidol]

Really interested to see the merchandising results from 2016.

With the Son signing we could gain a lot from the Korean market and with a core of our players looking like the new English spine for the national team that could cause an increase in shirt sales, especially for Kane and Alli.

Also wonder if our fantastic season will play a part in revenue increases and if some of our deals had clauses to increase for CL games.

I'd be astounded if most of our major sponsorship contacts didn't increase with CL - sponsor will get more tv exposure so happy to share ta benefit