Tottenham’s Daniel Levy Confident in Investor Talks After £868m Loss

Tottenham Hotspur Football Club is currently in talks with potential investors to increase its equity base and capitalize on its long-term potential. The club’s chairman, Daniel Levy, revealed that the Premier League team posted an overall loss of £86.8m in the financial year to 30 June 2023, despite an increase in revenue. The club’s total revenue for the year exceeded half a billion pounds for the first time, with the figure of £549.6m representing a significant increase on the previous year’s £444m.

However, operating expenses, including first-team costs, have risen by 21% to £487.9m, which has led to the loss. Levy attributed the loss to “significant and continued investment in the playing squad,” as the club continues to strive for success on the pitch.

To continue investing in the teams and undertake future capital projects, Tottenham requires a significant increase in its equity base. The board and its advisors, Rothschild & Co, are in discussions with prospective investors to achieve this goal. However, any recommended investment proposal would require the support of the club’s shareholders.

Revenue from match receipts, Uefa prize money, TV and media, and commercial all increased compared to the previous year. Profit from operations also rose from £112.3m to £138.7m. The club had £851.2m borrowings with over 90% at fixed rates and an average interest rate of 2.79% as of June 2023. The net debt was £677.4m.

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Tottenham’s ethos is to run the club sustainably, with strict control of its cost base, increased commercial and sponsorship revenues, and consistent European participation. All of these factors are key to the club’s ability to continue investing in the squad and winning top honours.

Since opening the stadium in April 2019, Tottenham has invested over £600m in its men’s and women’s first-team squads. Levy anticipates an increase in commercial revenue from third-party events, but this will not compensate for the lack of European football this season. Additionally, the impact of rising costs, caused by geopolitical events, is expected to continue to affect all areas of the club’s operations.

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