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£150m on new stars puts Spurs in with big spenders
Andrew Hodgson10.11.09
Figues out today have revealed an astonishing level of spending by Tottenham over the last 16 months, only surpassed by the billionaires at Manchester City in the Premier League.
Tottenham's latest financial results have shown an outlay of almost £150million on new players as the club revealed record profits in the year ending June 2009.
The pre-tax figure of £33.4m for the period was helped by the sale of Dimitar Berbatov to Manchester United and Robbie Keane to Liverpool.
Both of those heavyweights as well as Chelsea and Arsenal have spent less on players than their London rivals.
Only City - whose Abu Dhabi owners handed manager Mark Hughes £233m - have had a bigger outlay than Spurs, who have reshaped their squad following the departure of Juande Ramos and the appointment of Harry Redknapp as manager.
Tottenham splashed out £119.3m before the end of the financial year, with another £29.4m invested since on Peter Crouch, Sebastien Bassong, Niko Kranjcar, Kyle Naughton and Kyle Walker. Chairman Daniel Levy, who has also overseen projects on a new training ground and stadium on the site of White Hart Lane, said: "We have made significant progress in delivering on our long-term vision for the club.
"We have always had three key priorities and you will have heard them often repeated - investment in the first team, a new training centre and an increased capacity, state-of-the-art new stadium.
"We have assembled what we believe to be one of the most talented squads we have had during our time in the Premier League, the ground is being turned and pitches are being laid for the new training centre at Bulls Cross in Enfield.
"We have also submitted a planning application for a stunning new stadium on a site right next to our existing stadium."
The figures also estimate that the club have total assets of almost £300m.
Should Spurs maintain their current League position of fourth and qualify for the Champions League, the overall value of the club would also then be expected to rise significantly.
Reader views (19)
Why do people not take into account wage bills when discussing transfer fees. We may have spent £150 million in the last 18 months but how about the wage bills of the top four. In both 2006-2007 and 2007-2008 the wages paid out by the big four was atleast DOUBLE what spurs paid out. For example in 2007-2008 arsenal spent £49 MILLION more in wages than spurs. So for all the idiots saying how we are a rubbishly run club you need to get some perspective.
- Andy, oxford
And a whole TWO GOALS ahead of West Ham last year.
Wow.
You lot must be SO proud.
- Stu, Beckton
After seeing the Spurs playing recently (particularly against Arsenal) it is clear that their spending spree is a complete waste of money. Learn from Arsenal, you Spurs, otherwise it will be another 50 years until you win the Premiership again.
- Jaime, Madrid, Spain
Does anybody spot a pattern to the Harry Redknapp school of management? He arrives, buys a succession of hugely expensive players, wins plenty of games, and then disappears almost as quickly as he arrived, leaving the club in financial turmoil. That's exactly what happened at Pompey, and at West Ham before... It's call short-termism, folks. Great fun for every one while it lasts but disastrous in the long term. You've been warned, Tottenham. Remember your club is for life, not just for Christmas, even if Harry does think he's Santa.
- Neil Wise, Islington
Plain and simple, still not good enough to compete seriously with the top 3, let alone competing with Europes finest in the champions league!
- Paxton, N17
when are spurs going to join the big league and win something, sorry we did win the carling cup and the league fifty years ago
- Windsor, london england
So much money ... so little talent ......
- Rob, london
Jimbo and co
Great news to learn Tottenham have pulled a flanker on China and cornered the global market in steel. Clearly, Spurs fans know the price of everything...
- Harry Lime, London SW10
Mac, you are a biased Gooner. We need no lectures from you lot.
- Gazza'S Longshot At Wembley., London
Jimbo,
Clearly, another Spud who knows the price of everything...
- Harry Lime, London SW6
I've often wondered how Spurs can spend so much on players yet be consistently mediocre. Imagine also the huge severance payouts to their revolving door managers! An absolute joke. Want to know how to run a football club in a responsible and sustainable fashion? Jump on the bus to the Emirates.
- Mac, Highbury
I keep hearing about this huge waiting list for season tickets - if true why do all Spurs home games go on general sale?
A quick scan of the tottenham ticket page shows tickets available for Wolves and Man City at home to the general public
- Paul, Ealing
Jimbo - Thanks for the clarification re: the transfers, it still concerns me that we spent £119.3m & received only £77.5m, leaving a deficit of £41.8m according to the figures on our site. I presume this is offset by including our own valuations of our current playing squad. Which is somewhat unrealistic as we would have to replace players if they are sold. Indeed, it will be interesting to see where we will secure funding and at what cost, assuming the development receives the necessary planning consents. Bearing in mind the financial & planning difficulties encountered by Arsenal during the development of the Emirates stadium, I am very concerned. Indeed, they have paid off huge chunks of the finance with the property development aspect of their project, which doesnt appear to be the case with our project. They have also brought in substantial sums every season from involvement in the Champions League, reaching the later stages of the tournament most seasons. Although we are doing fairly well at present, I cant see us finishing top four this season, especially with Man City having a game in hand & possibly signing further stars in January to secure a top four place alongside, Arsenal, Man U, & Chelsea. This doesnt take into account either Villa or Liverpool who cannot be written off. Unfortunately, I smell a future financial disaster at our beloved club.
- Billy Bust, London
There's likely to be European football competition involving Spurs early next season. Even with fans squeezed by the financial crisis, a tens of thousands-long waiting list for season tickets suggests a new stadium would attract much larger crowds than the present ground can accommodate. The club seems well run and the first team is doing well.
- Peter, London, United Kingdom
Billy, the figures released will be for the tax year ending in April 2009. Crouch, Bassong and Kranlcar purchases will not be reflected in these, however, the article clearly states that that they allow for the purchases of Keane, Defoe and Palacios, as they were purchased during the January transfer window.
It would also be pointless 'massaging the figures', as finance is not secured on the basis of banks etc. reading the papers. Levy and the baord have done a remarkable job off keeping the club profitable despite the expenduture on players and the redevelopment at Bull's Cross. Levy has also saved the club millions by playing the futures markets and has aledgedly already procured large quantities of the steel required for the new stadium at today's prices as opposed to waiting 12/18 months when the price of steel is likely to sky-rocket.
My only concern would be that there is no mention of the company's gearing ratio, as heavy expenditure (although large chunks have been recovered through the sale of players) could leave us struggling for finance.
- Jimbo, Birmingham
Well if you dont have the fanbase then there is little point in expanding. We can clearly fill the stadium which at 56000 is a realistic figure and only 20000 more fans needed which we have a huge waiting list on season ticket holders anyway plus members let alone jo public that cannot ever get a ticket. I am fed up with everyone sniggering that all of this will backfire and showing false promise. Fact is Levy and the board who actually do care about the club unlike those Yanks in charge at Man Utd and Liverpool have done more to try and push the club to another level than anyone else. If we dont do this the club will never aspire to achieve anything and we may as wll not bother being in the game. Who cares what we spent, lost, broke even on, covered up. The club is in a healthy state, has good players, a decent manager and sitting 4th in the league. Ive not been this happy since the success of the early 80's.
- James, TOTTENHAM
Was it worth getting rid of Martin Jol for more swings and roundabout signing of another crop of average players and 2nd rate team performances. Tottenham should be looking at a new Stadium of 75,000 at least but hard to fill with a mid-table team.
- Clif, London
Whether these figures are massaged or not, there was an obvious profit made in the year ending June 2009. This resession won't last forever and if finance can be secured now at favourable rates for the new stadium, then it seems a very good investment.
I think the new stadium and training facility show that this board of directors are determined to move to a new level within the EPL and it has jealous onlookers riled and worried.
Well done Mr. Levy. It seems you know your arithmatic as well as, we all know, you love your club and are striving for greatness.
- Paddy M, London
Nice profits on face value.. Small problem, these figures didnt include the repurchase of Keane & Defoe, nor the aquisitions of Palacios, Crouch, Bassong, Corluka & Kranjcer, which the club stated has used up the 'profit'. On the books we sold players for £72.5m & purchased for £119.3m, a deficit of £46.8m. Another reason for the large profit is mainly due to the book value we have placed on our players, which hopefully may never be realised & in any event replacments would be needed if players are sold! As well as staggered payments for the new players & fans taking up the offer of purchasing season tickets for next season at a beneficial rate. These figures are presumably massaged to be used as a basis to raise the huge finance necessary to build the new stadium. The worry is that, as stated, demand is falling due to the crisis & once built we may not be able to consistently fill the stadium. Especially, as European football is missing this season & with Aston Villa, Man City & Liverpool, all within a win of catching us, is not by any means guaranteed next season either.
- Billy Bust, London
