Don't Get Weird On Me Babe
Tottenham Hotspur are involved in a fight to stay up, currently just a single point above the relegation zone, which seems incredible for a club with their financial resources.
Managerial Changes
Their plight owes much to a great deal of upheaval this season, which has featured no fewer than three head coaches. First up was Thomas Frank, who replaced “Big” Ange Postecoglou after the Australian was sacked in June, but he was unable to replicate his success at Brentford, so the Dane was given his marching orders in February.
The club’s hierarchy then made the somewhat bizarre decision to appoint Igor Tudor, a man with a patchy managerial record, as well as zero experience of the Premier League.
After a run of very poor results, the Croatian was also relieved of his duties, leaving Roberto De Zerbi with the task of guiding Spurs to survival.
Executive Changes
There was another important change, as Executive Chairman Daniel Levy “stepped down” from his role as after nearly 25 years.
Levy had become the face of Spurs, overseeing every detail of the club’s operations, including the development of an impressive new stadium, though he was also accused of a lack of ambition by many fans, while his uncompromising transfer negotiations were infamous in the football world.
Following his departure, Vinai Venkatesham arrived as chief executive, a role he had already held at North London rivals, Arsenal, while ENIC director and private banker Peter Charrington was appointed non-executive chairman.
2024/25 Season
This is the second consecutive season that Tottenham have struggled in the Premier League, as they finished a lowly 17th in 2024/25, though they did win the Europa League, after defeating Manchester United in the final. Not only was this the club’s first major trophy since 2008, but it also gave them direct qualification to the Champions League.
However, this was the first time that Spurs had finished outside the top ten for 17 years, which was the main factor behind Postecoglou’s being given his P45.
Profit/(Loss) 2024/25
Matters were no better off the pitch, as Tottenham’s pre-tax loss significantly widened from £26m to £121m, the club’s worst ever result, despite revenue rising £37m (7%) from £528m to £565m.
This revenue growth was more than offset by a steep increase in operating expenses, which shot up £79m (13%) from £589m to £668m, while net interest payable increased by £23m (48%) from £47m to £70m. In addition, profit from player sales dropped £29m from £82m to £53m.
The loss after tax was also up, rising from £26m to £95m, though the year-on-year deterioration was smaller, thanks to a £26m tax credit.
The club said that the revenue increase was “driven by our Europa League success alongside strong commercial performance across sponsorship, merchandising and stadium events”.
That said, net broadcasting income fell £5m (3%) from £167m to £162m, due to the “under-performance” of the team, which reduced domestic TV money.
However, there was good growth in the other revenue streams, as match receipts rose £20m (19%) from £106m to £126m, while commercial increased £22m (9%) from £255m to £277m.
Investment in the squad led to the wage bill increasing by £34m (15%) from £222m to £256m, while player amortisation rose £6m (4%) from £136m to £142m.
In addition, exceptional charges for onerous employment contracts were up from £2m to £12m, though depreciation fell £12m (17%), but it still came in at a hefty £57m.
Perhaps most striking was the increase in other expenses, which shot up £43m (27%) from £159m to £202m.
There was also substantial £23m growth in net interest payable, very largely driven by a revaluation of some warrants, which give the holders the right to purchase shares at a fixed price.
Tottenham’s £121m loss was the second highest in the Premier League in 2024/25, only surpassed by Chelsea’s barely credible £262m. Only one other club posted a loss of more than £100m, namely West Ham with £104m.