Whilst, not an accountant, prior to the shutdown, I have really seen no instance of the THFC financial model as being flawed. Revenues were higher and generation of revenue was set to increase from retail, gate receipts, TV, sponsorships (and of course naming rights) plus bonus income from NFL, boxing, concerts, etc. the structure of debt repayment took into account inflation of land/property prices (what might be a billion quid today could well be 2 billion in 10 years’ time). With revenues set to increase in the same way the relative costs would have proved out as less and less, as each year passed.
I’m sure the “Generational Debt” could be cleared in a much shorter period of time, but it serves to offset and reduce tax liability, whilst being a capital expenditure and as such not assessable on the regular P&L (Profit and Loss) spreadsheets. As an accountant, Levy does an outstanding job – indeed he would be the best CFO you could possibly ask for!
However, accountants don’t create businesses, they count the successes (or failures) of those who do. The death of a business, whether by dissolution or simply lacking any of the vitality it once had, is generally when the entrepreneur who had that enthusiasm and vitality for the product, is forced out by some form of gang **** by MBAs (the accountants – tho’ not sure the spelling should include the ‘o’)
The real issue with the THFC business is that the accountant has taken over the business and as part-owner runs the business on financials rather than what a real businessman would, opportunity, risk/reward, innovation, and the spice and verve that a true leader brings to nurture the core business: football.
The mutation of our motto into, “to do is too dear” pretty much sums this up. Levy will not risk beyond a line he has drawn, which represents his threshold for safety. He hires good people but stifles the leadership qualities listed above. THFC is not a vibrant and dynamic business; it is a corporate entity; we should really go all in and adopt a new kit which is a dull uniform grey.
But despite this, there seem to be so many obsessed by attacking Levy and ENIC based upon the financials – forget it, they are squeaky
clean: attacking them for destroying the life, which is the footballing part
of the football club by questioning their financial credentials, is pointless and somewhat absurd. They are guilty of not drawing the risk/reward line far enough from assured safety; this is deliberate and ensures them the best return on investment. But this is where their vulnerability lies.
They will not change, neither Levy nor Lewis have the capacity to understand that what they are doing is wrong. To them they are doing great, meeting and exceeding targets with little to no risk of loss. They are expanding the portfolio in the area and diversifying their business opportunity/risk exposure – they are not winning trophies, but they don’t care: they don’t count trophies as their core success metric.
As long as ENIC and Levy are there, they will continue in this vein ad nauseam – not so much a cockerel as a golden goose!
Given the wealth of the club and the track record of its owners, the total asset base and the projections of revenue and profitability going forward, the opportunity described for Manchester United, Cheatski and Citeh is also there for Levy & ENIC. However, whilst cheap players might appeal, there are other opportunities and I suspect struggling local businesses and for new “For Sale” signs in the Tottenham, area might be of interest.
As for PR, in a year or 18 months’ time, the scandal of what Levy has done with the 550 employees will have passed and it’ll get rolled into his hard man ethos – a myth other small, egotistical men have likewise sought to perpetuate.
The time to make real money they say is when blood runs in the streets, but you have to have the wherewithal and THFC does. Levy will broadly
maintain his targets of staying in the top 4; he’ll miss out every now and again and probably smile at the chance to be able to ‘not sign’ top players who want CL football… Aw shucks, but he tried ……right up to the last minute!!!!! Honestly, he did!!
The fact is the club is and will, continue to be infected by Levid-19: a pernicious, viral parasite that feeds on the club, never killing it, but never releasing the stranglehold on its full potential.