Premier League news: Club beats Liverpool to world-record profit
What’s the story?
It’s been reported by the Independent that Tottenham Hotspur have recorded a world-record setting annual profit of £113m for the 2017/18 season, beating the £106m mark announced by Liverpool earlier this year.
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Spurs have spent just over £1bn on their new 62,062 capacity stadium on the site of their old White Hart Lane ground, but despite nearly half of that amount being spent in 2017/18, the majority of it has been financed by loans.
Tottenham’s big profit was caused by 3 major factors; a full season of playing at Wembley, which boosted matchday turnover from £45m to £71m, reaching the knockout stages of the Champions League, a feat worth £53m, and improved commercial income of £109m.
Spurs famously also didn’t sign any players during the summer 2018 transfer window, meaning the club’s purse strings were kept tight in all areas.
Despite this, they remain 6th in terms of Premier League revenue, behind their title rivals Manchester United, Manchester City, Liverpool, Chelsea and Arsenal. Spurs fans hope the opening of their new stadium will help them close that gap.
The heart of the matter
Despite this profit, most Tottenham fans would agree that to push the club to the next level, the purse strings must be loosened somewhat. It’s also been reported that the club’s wage bill of £148m is around half of that which Manchester United payout, and is more in line with Everton – who are miles off the pace of the top 6.
The total cost of Tottenham’s squad is also less than Everton’s – meaning that Mauricio Pochettino has essentially been working miracles in North London since his arrival in 2014.
What’s next?
The fact that Spurs remain profitable despite the building of their new stadium should be a good sign for the club. With any luck, the new stadium will eventually allow chief Daniel Levy to allow Pochettino to strengthen the squad, meaning Tottenham should compete for the Premier League title for the foreseeable future.