Football
Tottenham Hotspur in talks with investors over £86.8m losses
Tottenham are in talks with “prospective investors” after reporting losses of £86.8m in their 2022-23 accounts, says chairman Daniel Levy.
Total revenue increased by 24% from 2022 to a record-high £549.6m, with matchday income reaching a record £117.6m.
But they reported a loss for the fourth successive year following the 2022 deficit of £50.1m.
Levy stressed the need 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,” he said.
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“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.”
Under Premier League profit and sustainability (PSR) regulations, clubs can lose a maximum of £105m over a three-season period, or £35m per campaign, before facing sanctions.
Tottenham’s losses over the last three years are beyond that threshold at £220.7m, but the annual depreciation charge of £72m, which refers to their stadium and other facilities, means they are not at risk of breaching PSR regulations.
Everton and Nottingham Forest have already been punished with points deductions this campaign for breaking PSR rules, while Championship side Leicester were charged last month by the Premier League for allegedly breaking spending rules during their last three seasons in the top flight.
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“The club remains fully compliant with the rules and is supportive of the enhancement of PSR to ensure the Premier League remains competitive and sustainable,” Levy said.
“We have operated on a financially sustainable basis and can now optimise the true value of key assets, the unrivalled facilities at our multi-use stadium and our training campus.
After finishing fourth in 2021-22, Tottenham returned to the Champions League last season – reaching the last 16 – bringing in £56.2m in Uefa prize money, compared to £10.2m in the previous year’s accounts when they suffered a group-stage exit from the Europa Conference League.
Tottenham’s accounts for 2022-23 showed operating expenses had risen by 21% from £403.4m to £487.9m, due to increased first-team costs and the hosting of multiple non-football events, such as NFL fixtures, boxing and music concerts.
A “significant and continued investment in the playing squad” saw the wage bill rise by 20% to £251m. Levy also had a pay increase from £3.2m to £3.5m, while taking home a £3m bonus.
Tottenham said the increase in season ticket prices is because they have only raised prices once in the past five years – by 1.5% – and there had been a “significant increase in matchday costs”.