Top football finance expert, Kieran Maguire, has given his take on why Tottenham lost so much money in their last financial reporting (The Athletic).
The coronavirus pandemic has seen several top teams incur unimaginable losses in the last year.
Spurs haven’t been left out and this has affected their revenue.
The Lilywhites want to remain a top English team and they invested heavily in their squad in the summer.
This comes after they had struggled to make as much revenue as they had made the previous year.
Maguire was giving his opinion on financial news around the footballing world on the latest edition of The Price of Football podcast and said one reason why Spurs lost so much money was because of their new stadium.
He claims that Tottenham had to depreciate their stadia in the financial reports because they had started using it and that was reflected in the losses.
He said: “In 2020, Spurs had a full season in the new stadium, and that new stadium cost well over £1bn. So, therefore, you depreciate the new stadium for the whole of the year.
“Whereas if we take a look at 2019, for the first two-thirds to three-quarters of that season, Spurs were, of course, still playing at Wembley. You only start to depreciate an asset when you start to generate money from it, as far as the accounts are concerned.
“So in 2019, Spurs depreciated the new Tottenham Hotspur Stadium for three months of the year, and when it came to 2020, they did that for 12 months of the year, therefore increasing the depreciation cost.”
Spot on.
the club will reap the rewards of its revenue potential in due course.
Albeit did I once read that ENIC saw the stadium debt/profits as a separate entity to that of the football club and would have no direct impact positive or negative .
may have been a dream along with Bale leading us to the next level (instead of it being just a convenient stop off on the way to Cardiff!)
H – have I made this up ?
A quarter of the money used for the stadium could have gone to the manager and we’d have had at least 1 title at WHL by now.
They
Don’t
Care
Can we ‘do a Leeds’?… It would be even more embarrassing if we went bankrupt. And ended up in league 2 and 1 for a decade or 2… With our giant empty superbowl.. I wager that Leeds didn’t owe as much as us.