Tottenham have released their financial results for the year ending June 2022; In a statement, Daniel Levy admitted some transfers "have not worked out as planned"; The club's total revenue increased 22.7 per cent to £440m; The loss for the year was £50.1m, down from £83.8m
Friday 10 February 2023 14:31, UK
Daniel Levy has admitted Tottenham have made transfer mistakes which are still impacting the club despite a growing financial position.
Spurs have announced their annual financial results for the year ending June 2022, the first full season since the Covid-19 pandemic restricted fans from attending matches, with total revenue increasing 22.7 per cent to £440m from £361.9m in 2021.
The club defended their position earlier this month when questioned by the Tottenham Hotspur Supporters' Trust over their transfer spending which has seen them invest more than £500m since April 2019 in the first team.
In a statement, Levy reinforced the club's commitment in the transfer market although admitted the money they've spent hasn't always paid off.
"Our spend levels show we have invested in the team - however, we walk a fine line between long-term investment and short-termism," said Levy.
"This is why our recruitment must be first class as mistakes at this level have a financial and sporting impact for future seasons.
"We have felt, and continue to feel, the financial impact of supporting player purchases which have not worked out as planned. We have taken steps to improve this area of operations and we believe the recent transfer windows reflect this.
"Our aim has always been to combine the financial stability of the club with remaining competitive on the pitch. We have to do what is right for us and sustainable in the long term."
Tottenham spent a further £47m in the January window on Arnaut Danjuma and Pedro Porro although Chelsea's spending spree sent alarm bells ringing across Europe and stressed a greater reliance on Financial Fair Play.
"The landscape of the Premier League has changed significantly in the last decade," added Levy. "It is understandable that some fans call for more spending, much of which is unsustainable for many clubs.
"We are competing in a league in which we have seen increased sovereign wealth ownership and consortia finance; and in a league where the spending power is now vested in the hands of a few who dominate and have the ability to distort the market.
"We welcome the changes to the governance of the game which will compel greater financial sustainability and financial fair play (FFP).
"Major changes have been introduced in Europe around FFP regulations, including the newly-launched UEFA financial sustainability rules, the full impact of which will be felt from season 2025/26. They are based on three pillars: solvency, stability and cost control and clubs will have three seasons to adjust to them.
"Many expect that these new rules will be a game changer for the sport. Even tighter regulations may follow."
Spurs' improving financial position from June 2021 to June 2022 was largely impacted by their match receipts which rose from £1.9m to £106.1m thanks to their first full season in the new stadium at capacity.
But their time in the Europa Conference League saw their UEFA prize money fall from £23.6m to £10.2m.
TV and media revenues were £144.2m down from £184.4m due to a number of games and related TV and media revenues from 2020 being played and accounted for in 2021.
Commercial revenues from sponsorship and merchandising grew by 20.7 per cent to £31.5m as a result of new sponsors, stores being open and the start of new major events being hosted at the stadium throughout the year.
The club's operating expenses (before football trading) increased 18.7 per cent to £403.4m from £339.8m due to increased first-team costs and the return to full matchday operations.
The profit from operations, before depreciation, amortisation, player trading, interest and taxation increased 15.7 per cent to £112.3m from £97.1m.
The loss for the year after depreciation, amortisation, player trading, interest and taxation was £50.1m, down from £83.8m the previous year.
