A report has claimed that even though Tottenham Hotspur’s accounts show that the club have posted consecutive losses over recent years, they have a huge amount of cash in the bank.
When the accounts for the financial year of the 2023-24 season were released last month, it showed that Tottenham Hotspur had posted an operating loss for the fourth year in a row.
While releasing those numbers, Daniel Levy also issued a warning to Tottenham fans about the club’s unsustainable transfer spending over the last few years.
However, it turns out that a closer look at the numbers reveals that the North London club are in an extremely strong financial position.
Tottenham have £375m in the bank across 13 companies
This update comes from TBR Football, who say that although Tottenham have made a loss on paper over recent years, that is down to the depreciation on the stadium.
That is a tool accounts use to measure the value of an asset over time, but rather than being a cash expense, it is a figure merely used to ascertain the health of a business.
The report explains that with regard to metrics like cash flow or EBITDA (earnings before interest, tax, depreciation and amortisation), the picture is very different for Tottenham.
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Spurs remain the most profitable club in the Premier League, consisting of 13 companies registered at Lilywhite House in total, which have £2.7bn worth of assets on the books and £375m cash in the bank.
Research from Jason Stephens titled ‘Premier League Clubs – The Hidden Millions’ reveals the following figures:
Why Daniel Levy may be concerned about Spurs financial health
While the deprecation on the stadium might not directly affect Tottenham’s ability to spend on transfers or wages significantly, this article from TRB Football misses a crucial point.
It has been widely reported that Daniel Levy is looking to attract investment into Spurs and has held talks with several parties regarding the same.
However, in order for their valuation to be met, the health of the business needs to be in top shape.
That is also the likely reason the Lilywhites have significantly reduced their wage bill over the last 12 months, with the move being made to make the club more attractive to potential investors.