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Spurs profits down

Discussion in 'Spurscommunity Front Page News' started by mawspurs, Dec 8, 2006.

  • by mawspurs, Dec 8, 2006 at 8:08 AM

  • mawspurs Moderator

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    SPURS NEWS

    Tottenham have suffered a drop in pre-tax profits in the year ending June 30 2006 compared to the previous year.

    Source: Ireland Online

    Spurs announced a profit of £600,000 (€886,000) before tax, down from £4.9m (€7.2m) in the year ending June 30, 2005.

    Turnover increased by £3.5m (€5.2m) to £74.1m (€109m) while operating profits before football trading and depreciation dropped by £10m (€14.8m) from £14.6m (€21.6m) to £4.6m (€6.8m).

    The club missed out on qualification for the Champions League preliminary rounds on the final day of last season, instead securing a place in the UEFA Cup, though any revenue generated from competing in Europe is not included in this financial period.

    Revenue from sponsorship and corporate hospitality was up 10% on the previous year, with Spurs signing deals with Puma and Mansion in February and May respectively.

    Chairman Daniel Levy said in a statement to the Stock Exchange: “We have continued to develop a strong squad of players with a mix of good young talent whilst ensuring that the financial resources at our disposal are managed prudently for the long-term benefit of the club.

    “We continue to generate cash and when appropriate will continue to invest in the team. In the FA Premier League we currently stand in 10th position which we all hope will improve as we progress through the season.

    "I am delighted that the team has already qualified from the league stage of the UEFA Cup competition and we have qualified for the quarter-final stages of the League Cup.”
    _____________________________________________________________

    From the Official Site 8 Dec 06:-

    Tottenham Hotspur PLC Preliminary Results for the year ended 30 June 2006 have been published this morning.
    Commenting, Daniel Levy, Chairman of Tottenham Hotspur plc, said: “The 2005/06 season resulted in the Club achieving the key milestone of preliminary qualification for the UEFA Cup competition and finishing fifth in the FA Premier League. We have invested significantly in the team, the Club’s infrastructure and into our community projects. We have continued to develop a strong squad of players with a mix of good young talent whilst ensuring that the financial resources at our disposal are managed prudently for the long-term benefit of the Club. We continue to generate cash from a strong commercial platform.”

    Click here for the CHAIRMAN'S STATEMENT AND PRELIMINARY RESULTS (MS Word document)
    mawspurs, Dec 8, 2006
    #1
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Comments

Discussion in 'Spurscommunity Front Page News' started by mawspurs, Dec 8, 2006.

  1. littlemandefoe
    But its for good reasons right?
    littlemandefoe, Dec 8, 2006
    #2
  2. davidmatzdorf
    It's not a problem. I've read the Financial Report on the official site.

    Turnover up, despite lack of cup runs; modest profit on player trading.

    Note that the period in question ended on 30 June. One major player transaction (worth up to £18m) post-dated the end of this accounting period.

    The main change that affected profit was a large increase in interest charges. The fact that there is also a large increase in cash balances suggests that, for whatever reason, the club had more borrowed money on hand, hence the increased interest charges.
    davidmatzdorf, Dec 8, 2006
    #3
  3. camaj
    Right david, it's basically good news, higher turnover despite only 40 games last season. I'm guessing the sponsorship deals are paid yearly rather than as one lump sum.

    Next years should be massive, potentially 23 more games than last season
    camaj, Dec 8, 2006
    #4
  4. db1
    If Puma were a better SUPPLIER, ie made the kits to demand and not had fans going to 8-9 shops before finding a home kit (don't even get me started on the 3rd kit which you can buy for £80-£100 on ebay), then perhaps we would be making good money on that also in the next report. I will never understand why only 3000 odd 3rd kits were made when it is a sought after kit..:roll:
    db1, Dec 8, 2006
    #5
  5. xzander
    As others have pointed out, if you go out in the first round of both cups and you aren't in Europe you end up with a 40 games season and only 19 homes games i.e. only 19 games in which to maximise revenue on your territory which is why there's been a slight downturn in profits. This year we'll have the extra Euro money, extra League Cup money, hopefully more from the FA Cup, plus the Carrick cash.
    xzander, Dec 8, 2006
    #6
  6. justfookinhitit
    cash is cheap at the moment so borrowings aren't a problem. Also don't forget there are some good accountants floating around at the club that can avoid tax at every opportunity, so just looking at pre-tax profits can be a bit misleading. Vodafone is a great example - they've avoided corporation tax for years through the downward revaluation of assets, while the business is turning in a seriously healthy cash profit.

    so there.
    justfookinhitit, Dec 8, 2006
    #7

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