A Glimpse into the future... | Vital Football

A Glimpse into the future...

Spursex

Spursex

Alert Team
Our financial muscle once we are in the new stadium will be transformed..


Financial results, year end 30 June 2017

Posted on 3 April 2018 - 08:00
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Financial Highlights

Revenue for the year ended 30 June 2017 was at a record level of £306.3m (2016: £209.8m).

Premier League gate receipts were £19.0m (2016: £22.2m). Gate receipts decreased in comparison to the prior year as a result of the demolition of the North-East corner of White Hart Lane Stadium. The stadium continued to sell out for all Premier League home games, further underlining the need for an increased capacity stadium to meet demand and satisfy a waiting list for season tickets that has now risen to over 62,000.

The Club participated in the group stages of the UEFA Champions League and the round of 32 of the UEFA Europa League (2016: round of 16 of UEFA Europa League) resulting in gate receipts and prize money of £44.6m (2016: £18.7m).

Revenue from the domestic cup competitions earned the Club £5.0m (2016: £2.4m).

Television and media revenues rose to £149.8m (2016: £94.8m), due to the commencement of a new three-year Premier League broadcasting deal and a record second place league finish (2016: third).

Sponsorship and corporate hospitality revenue was £54.7m (2016: £48.8m) and merchandising revenue was £14.0m (2016: £12.0m).

Profit from operations, excluding football trading and before exceptional items and depreciation, was £117.6m (2016: £63.3m). Profit for the year after interest and tax was £41.2m (2016: £33.0m).

The Group has continued to invest significantly in construction work, professional fees and enabling works relating to the Northumberland Development Project (NDP) with the cumulative spend increasing from £115.3m to £315.1m during the period.

Group net assets are £227.2m (2016: £206.1m) whilst the Group has cash, net of all borrowing of £14.6m (2016: £47.6m).

Northumberland Development Project (NDP) Update

Following the demolition of White Hart Lane in May, 2017, the construction of the new stadium has significantly accelerated. The roof is in the process of being raised with many interior areas being fitted out; seats are currently being installed in the bowl along with the LED video screens. The Tottenham Experience, Museum and Retail store, which includes the restoration of the historic Warmington House, is well underway. Groundworks have been completed to Paxton House which will deliver a new Ticket Office and an additional retail store. Percy House has been painstakingly restored to its former glory and is now the new home of the Tottenham Hotspur Foundation.

We continue to push local and regional government regarding the timely delivery of the associated public sector infrastructure work and transport upgrades.

The stadium project continues to drive benefits to the local area. We have now delivered more than 1,200 jobs across many different sectors of employment.

The Lodge

The elite player accommodation facility for the First Team and Academy will open in May, 2018. This 46-bedroom facility will deliver an unparalleled environment for player rest and rehabilitation, further enhancing what is widely recognised as one of the best Training Centres in Europe. The Brazil national team will be using the facility for their pre-World Cup preparations.

Outlook

Chairman, Daniel Levy, said: “Extraordinary levels of financial and human resource have seen significant progress on capital projects, with schemes underway at both the new stadium site and our Training Centre.

“As custodians of the Club we are ever-conscious of the need to ensure the future stability of the Club whilst managing its growth.

“We are in an historic period for the Club and there is a growing sense of excitement. There will, however, be many challenges in the coming months as we near the latter stages of the construction of the new stadium and its opening.

“The drive and determination to deliver our best across all areas of the Club, together with the unity and support of all involved, will, I believe, see us meet those challenges.”
 
There was a 24% increase in commercial revenues. they went from 58 to 72 million. This, once the income from the stadium is realized, will be the game changer is they continue to grow at this rate.

To illustrate the potential, more than half of United's 2017 reported revenues was commercial income. 268 million.

This is where we need growth.
 
so...

say the average season ticket price hike is about £200 (probably a bit more but Spurs claim they haven't raised prices much for the majority so let's pretend they're telling the truth). 40,000 STs - £200 - I make that £8M... With the increased capacity that probably wouldn't even be 2% of the revenue we'll bring in next season.

Appreciate it's not nothing, but surely they'd be better off trying to cultivate a loyal fanbase who show up rain or shine and make a load of noise so that they can keep growing the global fanbase and commercial brand? Gate receipts seem to be such a small fraction, and if you look at Arsenal's recent attendances there's surely a lesson to be learned of going after the fans who can justify spending £1500/year on a ST.

Not saying there aren't a load of proper supporters who can afford that, I intend to renew mine if I can get decent seats by the time my phase opens, but I'm also aware of friends who have been going for years who are struggling to justify the increase - especially when we know people are buying tickets to less glamorous ties for way less than we're paying on average.
 
freundorfoe said:
so...

say the average season ticket price hike is about £200 (probably a bit more but Spurs claim they haven't raised prices much for the majority so let's pretend they're telling the truth). 40,000 STs - £200 - I make that £8M... With the increased capacity that probably wouldn't even be 2% of the revenue we'll bring in next season.

Appreciate it's not nothing, but surely they'd be better off trying to cultivate a loyal fanbase who show up rain or shine and make a load of noise so that they can keep growing the global fanbase and commercial brand? Gate receipts seem to be such a small fraction, and if you look at Arsenal's recent attendances there's surely a lesson to be learned of going after the fans who can justify spending £1500/year on a ST.

Not saying there aren't a load of proper supporters who can afford that, I intend to renew mine if I can get decent seats by the time my phase opens, but I'm also aware of friends who have been going for years who are struggling to justify the increase - especially when we know people are buying tickets to less glamorous ties for way less than we're paying on average.
Click to expand...

I have to say, I too think the club have got their approach wrong; the big uplift in revenues is going to come from the additional hospitality packages/upgraded special seat packages and of course the massive increase in food and drinks - we need the 'hardcore' fans to create the atmosphere and we can easily make up what we take from the them by our likely huge increase in commercial deals and our rev's from the Champions league...

So got to say, I think the club have got this one all wrong.
 
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