Daniel Levy fears Tottenham Hotspur could face a £150million loss next year
According to Football.london, Tottenham Hotspur have announced that they made a loss of £63.9million. This is in stark contrast to the £68.6m in profits that the club raked in last year.
While the current revelation does not paint a bright picture, things could get much worse next year. That is according to chairman Daniel Levy, who remains concerned about crowds not being allowed back into stadiums.
Levy has predicted a £150m loss next year if empty stadiums continue to be the norm going forward. Despite blitzing teams on the pitch, Spurs too have fallen prey to the effect of the coronavirus pandemic.
“Our estimate for the current financial year of the potential loss of revenue, should the stadium remain closed to fans, is in excess of £150m.”
Spurs have released their revenue for the year as of 30 June 2020. The amount came to a respectable £402.4m. However, this was down from £460.7m we earned the previous year.
The profit from operations, excluding football trading before depreciation and exceptional items experienced a steep fall from £172.7m in 2019 £115.3m today. Meanwhile, operating expenses before football trading increased to £358.1m from 2019’s £312.8m.
Premier League broadcasting and media revenues decreased to £95.2m from £149.9m. A major reason for this was revenue being deferred to the 2020/21 season in respect of those games played post-year-end. Champions League prize money also reduced to £51.2m from £94.0m after the club failed to reach the final like in 2018/19.
A testing time!
Levy went on to confirm that the current challenges are the biggest he has faced at the club.
“We are currently in the midst of one of the most challenging times ever experienced.”
Having just completed a £1.2bn stadium build, the financial crisis could not have come at a worse time. Our marvellous new arena is financed by club resources and long-term debt.
Apart from losing matchday income, Spurs have also had to contend with missing out on third-party events such as NFL, concerts, the closure of stores, and visitor attractions.
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What this means to the long-term health of the club remains unclear for now. It is fair to assume that it will not be smooth sailing until fans are once again allowed into the stadium.
At the very least, the team on the pitch looks to be doing well. It is a shame that our fans are not present to cheer them on as they go from strength to strength.