April 2019 - Financials Released | Vital Football

April 2019 - Financials Released

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      #THFC profit before tax improved by £87m from £52m to £139m, as revenue rose by £71m (23%) to £381m and profit on player sales was up £33m to £73m. New club records for both revenue and profit. Profit after tax “only” increased by £77m from £36m to £113m.
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You would expect the wage turnover percentage to fall when revenue rises that aggressively, I would be looking to see what it looks like next season.
I would fully expect it to move back up to around the 45-50% mark.
 
This time next year if we have CL the turnover should be well over 500m. Which means we will catch the scouse, gooners and chavs pretty quickly.
 
Topspur1 said:
You would expect the wage turnover percentage to fall when revenue rises that aggressively, I would be looking to see what it looks like next season.
I would fully expect it to move back up to around the 45-50% mark.
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Yup. It was more about the ability to pay in the future.
 
Remembering this is up to June 2018 and before we increased the wage bill with the new deals for Kane, Dele, Son etc. So Wage to turnover of 39% could look way different to the year ending Jun 2019.
 
muttley said:
Remembering this is up to June 2018 and before we increased the wage bill with the new deals for Kane, Dele, Son etc. So Wage to turnover of 39% could look way different to the year ending Jun 2019.
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Good point it was likely the trigger that led to the new contracts.
 
Massive profit means lots of dosh for transfers.Over to you Danny.Spend like there's no tomorrow.It certainly cheered up Ebenezer Scrooge.Lol.
 
A stubborn manager and the man that does the negotiations was too busy with the stadium.

If we have another disastrous transfer window I'll be spitting blood. :gimp:
 
When you read the full financial report you'll see that the valuation of the club has gone up by £459m to £1.3b by Jun 18. The debt only went up by £380m. Fast forward a year and that stadium has probably valued the club at closer to £2b whilst the debt will probably double.

If we are in a position where that debt is eventually cleared and the club is worth £2b or more, then Levy / Lewis are very rich men if they sell as the 2 primary stakeholders. I'd take a personal fortune of £1b for 30 years hard work. I've done over 20 since I Ieft uni and my personal fortune is a rounding error :-)

I applaud Levy for his operational wizardry with the business, but would feel better if I could also win out of earnings per share and dividends as a true stakeholder. After all it is the fans that pay for the Sky / BT Sport subscriptions plus the gate receipts, merchandise etc. It still feels a little like that it is going towards Levy's mission to become the first self made billionaire from running a football club rather than new players and trophies. As I've said before it's up to him to prove that isn't the case though. That time is now.
 
Kinygerbils said:
Can we shut up about having nothing to spend now?
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I've been telling that to anyone who'd listen. Perhaps now they'll understand. I also got the t/o almost spot on, profit was harder to predict.

Key facts to note are (as said above) it doesn't reflect the effect of the new deals., or the additonal 1.5 mill per game event fees for wembley, so profits might even look slightly subdued next year.

Debt may leap from around 380 to 675 mill.

Next summer should now prove my final point of argument here that the new stadium project overuns will not affect the player budgets - but don't expect us to go spend mad either, my expectation is 2/3 new additions that will be fighting for first team starts and 2, possibly three investments for next season and beyond. Of course, much depends on player sales and how they're stuctured.

IF we do somehow manage to be in the champions league next season, my prediction of full year finances for 2019/20 (reporting in 2021) remains at £521 mill (463 mill if no champions league).

As I've constantly argued, we will be a different proposition as a club and be able to compete with all but Europe's top 4/5 elite within 3-4 years.

All it requires now, is the right structured finance; possibly a share placing and the ability to spend when we have to, plus of course a manager who can craft all this positivity into a winning mentality.

And if all that makes Levy a billionaire; good luck to him.
 
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muttley said:
When you read the full financial report you'll see that the valuation of the club has gone up by £459m to £1.3b by Jun 18. The debt only went up by £380m. Fast forward a year and that stadium has probably valued the club at closer to £2b whilst the debt will probably double.

If we are in a position where that debt is eventually cleared and the club is worth £2b or more, then Levy / Lewis are very rich men if they sell as the 2 primary stakeholders. I'd take a personal fortune of £1b for 30 years hard work. I've done over 20 since I Ieft uni and my personal fortune is a rounding error :-)

I applaud Levy for his operational wizardry with the business, but would feel better if I could also win out of earnings per share and dividends as a true stakeholder. After all it is the fans that pay for the Sky / BT Sport subscriptions plus the gate receipts, merchandise etc. It still feels a little like that it is going towards Levy's mission to become the first self made billionaire from running a football club rather than new players and trophies. As I've said before it's up to him to prove that isn't the case though. That time is now.
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Levy's ability to focus on the long term view has always been remarkable.

His son is now running a small business/asset focused financing business (after the stepping down of another Spurs mainboard director) and is also looking long term and doing remarkably well.

The family clearly have a eye for business.
 
The one thing that did make me chuckle after last years massive hoohaaaa from some quarters was the financials showing Levy had his salary halved...and is now not the highest paid exec in the PL..

I bet he feels hard done by after the year he's just had.
 
Here's a question though. Why did we leave ourselves in a position where we paid £26m tax on £139m profit when we took on more debt for the stadium? It sort of feels like we should have managed our profit to zero in the 17/18 financial year and deferred the debt building up in subsequent fiscal years. I'm no accountant but that seems a bit sub-optimal to me, especially as you can see the same thing occurring in the 18/19 finances albeit with much less profit from player sales.
 
muttley said:
Here's a question though. Why did we leave ourselves in a position where we paid £26m tax on £139m profit when we took on more debt for the stadium? It sort of feels like we should have managed our profit to zero in the 17/18 financial year and deferred the debt building up in subsequent fiscal years. I'm no accountant but that seems a bit sub-optimal to me, especially as you can see the same thing occurring in the 18/19 finances albeit with much less profit from player sales.
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Sometimes, you have to follow the accounting rules and be cleaner than clean. also never forget that Levy now has the job of having to keep impressing the funders/institutions that Spurs are a club worth investing in.

Paying tax under those circumstances is a small price to pay.
 
Spursex said:
Sometimes, you have to follow the accounting rules and be cleaner than clean. also never forget that Levy now has the job of having to keep impressing the funders/institutions that Spurs are a club worth investing in.

Paying tax under those circumstances is a small price to pay.
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Zactly. Paying taxes means you're making money. I hope the club ends up paying 250 million in taxes.
 
80deg16minW said:
Zactly. Paying taxes means you're making money. I hope the club ends up paying 250 million in taxes.
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Eventually, exactly. In the year we're talking about our debt rose by £380m.

Ex is probably nearer the mark with the accounting rules. Still feels like a zero profit and a debt of £240m would have been preferable though.
 
muttley said:
Eventually, exactly. In the year we're talking about our debt rose by £380m.

Ex is probably nearer the mark with the accounting rules. Still feels like a zero profit and a debt of £240m would have been preferable though.
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You have to show a legit profit for those people. Nothing replaces profit. And eventually, in order to take Lewis out the incoming investor will want to see the ability to pay a cash return (yield) on their investment.
 
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