Overall profit and loss result
Today the Club announced a loss of £86.8m for the year ended 30 June 2023 representing an increase of £36.7m on the £50.1m loss recorded in 2022.
Within the results the Club recorded an Operating Profit (excluding football trading) of £61.7m (up £21.6m on 2022) driven by an increase of 24% in revenue to £549.6m as a result of our participation in the Champions League in 2023 vs the Europa Conference League in 2022, as well as income from large non-footballing events such as NFL matches, concerts, high-profile boxing and rugby games.
In terms of football trading, costs increased from £79.9m to £127.1m year on year reflecting the increased investment in the first team from the Club – James Maddison and Guglielmo Vicario are included within this.
In the remainder of the profit and loss the Club recognised £44.7m of net finance costs (stable year on year) relating to the costs of servicing the debt on the stadium.
Financial fair play (FFP)
FFP compliance is assessed over a rolling three-year period (i.e. the last three financial years). The calculation takes into account total profit or loss for the year adjusted for depreciation on the stadium and other exceptional items. Across any three-year assessment period a club is allowed to make up to a £105m loss.
Across 2021-2023, the Club made losses of £220.7m. However, with an annual depreciation charge of c.£72m to be added back each year for the stadium, the Club are in a strong position to continue to comply with FFP regulations both in the current period and future years.
Valuation of properties
The Club recognised a substantial increase of £560m in the value of its Investment Properties (primarily the stadium and training complex). These assets are valued annually by external valuers. Such a large increase represents the strength of the assets the Club has built in recent years, and which have no doubt laid the financial foundations for the future – especially given the low cost and long-term nature of the debt taken out to fund the projects.
Executive bonuses
In the year Daniel Levy was awarded a £3.0m bonus on top of an increase in base salary of 9.7% from £3.265m to £3.581m.
Investment
We note the comment from Daniel Levy regarding external investment:
‘To capitalise on our long-term potential, to continue to invest in the teams and undertake future capital projects, the Club requires a significant increase in its equity base. The Board and its advisors, Rothschild & Co, are in discussions with prospective investors. Any recommended investment proposal would require the support of the Club’s shareholders.’
As a Trust our objective is to ensure the custodians of our Club continue to have the best interests of the Club at heart and any changes to the ownership structure are consulted on not only with shareholders but with the wider fan base through conversations with the Fan Advisory Board and the Tottenham Hotspur Supporters’ Trust.
The Club is in a strong financial position and is set up for future success. We recognise the benefit of the non-footballing events at the Tottenham Hotspur Stadium both from a financial and marketing perspective. We feel strongly this benefit should be passed on to our match day fans through the re-instatement of senior concessions and the reversal of the recent season ticket price increases.
Our full report will be issued over the coming weeks.