Spurs talking to new investors after £87m loss
DANIeL LeVY revealed yesterday he is having talks with potential investors in Tottenham — as it emerged that he netted a £3million bonus last season even as the club made an annual loss of £86.8million.
Spurs remained tight-lipped on whom those investors were, but it is thought that Qatar Sports Investments, who own Paris Saint- Germain and have expressed an interest before, are focusing on other projects including MotoGP. A number of American investment groups are circling.
Spurs chairman Levy has come under fire from sections of the club’s fanbase over his bonus after a 12-month period when Tottenham lost a considerable amount and endured a miserable season on the field, finishing eighth in the Premier League and failing to qualify for europe.
It is thought part of Levy’s bonus relates to performance away from football, such as commercial deals. Tottenham’s stadium hosts NFL matches and music concerts featuring the likes of Beyonce, who played five nights there last year.
The club’s large losses are in part due to the soaring wage bill, which overtook Arsenal’s for the first time since 1995-96.
Insiders have disclosed that the loss is not at a level which would impact the club’s compliance with the Premier League’s profit and sustainability rules (PSR), so there is no risk of a points deduction.
Significant amounts spent on infrastructure do not count towards PSR and the club does not need to sell players this summer to comply. The sale of harry Kane to Bayern Munich will feature in this season’s accounts.
Revenue rose above half a billion for the first time, with the £549.6m recorded being a 24 per cent increase year on year.
however, operating expenses rose 21 per cent to £487.9m with the loss put down to ‘significant and continued investment in the playing squad’.
Tottenham’s wage bill was £251m for the period, compared to the Gunners’ £235m. That puts them fifth in the top flight behind both Manchester clubs, Chelsea and Liverpool.
‘While UEFA monies contributed, this has also been driven by increased stadium revenues from football and non-football events and additional revenue streams,’ Levy said.
‘This is the impact of our multiuse stadium and what our board has been focused on delivering in order to invest in our football in a financially sustainable manner. The absolute priority for our club is to deliver on-pitch success.’
Levy added that ‘the board and its advisors, Rothschild & Co, are in discussions with prospective investors’ because Spurs know that ‘to continue to invest in the teams and undertake future capital projects, the club requires a significant increase in its equity base’.
Under boss Ange Postecoglou, who arrived from Celtic last summer, Spurs are fifth in the table behind Aston Villa and chasing Champions League qualification.