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Financial Results

What were Levy's three objectives set 15 years ago? Team playing better, new training ground and then new stadium? He's on track for delivering all three, although probably a bit behind schedule due to stadium delays, oligarchs & sheikhs, and teething problems as he learnt the job.
 
FINANCIAL RESULTS, YEAR END 30 JUNE 2017


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.”
 
Glenda's Legs said:
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).
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Is this saying then that we've spent £200m on the stadium this year, while also reducing our debt by £33m?
 
It does seem to say that. However, we've spent an extra £200m and the assets have only gone up £20m so perhaps there is some accountancy jiggery-pokery going on.
 
I have no idea how the assets are accounted. It just seems common sense that a partially built stadium would count towards the assets. The money has been spent, the work has been done, and value must have been added in some way.
 
If the loan is offset by the lender holding the asset, does that explain why cash ("net of all borrowing") is still positive?
 
Does that mean a £250 loan over 10 years would only count as £25m borrowing against the cash balance?
 
jts1882 said:
If the loan is offset by the lender holding the asset, does that explain why cash ("net of all borrowing") is still positive?
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I believe so
We have no security on the build as it would be owned by the company loaning the money and insured by the builder so to speak.
 
jts1882 said:
I have no idea how the assets are accounted. It just seems common sense that a partially built stadium would count towards the assets. The money has been spent, the work has been done, and value must have been added in some way.
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Is a partially built stadium worth more than the land it's built on (which we had in the previous financial audit)? If someone were to acquire this 'asset', they would have to build it out for it to be worth something?
 
LemonadeMoney said:
Is a partially built stadium worth more than the land it's built on (which we had in the previous financial audit)? If someone were to acquire this 'asset', they would have to build it out for it to be worth something?
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That’s how I see it. I also wouldn’t be surprised if we have a development loans where no money is paid by us until completion

That’s common for bespoke developments
 
Assets have to be balanced with Cash/debt, so both have to feature in the finacial results. It's impossible to say how it's done in this particular case, without seeing the complete Finacial Statement.
I don't know how it is in Britain, but here in Norway, finacial statements are publicly available.
 
Levy's pay increase is going to cause a stir, assuming that he is the highest paid director (£6,013,000, up from £2,843,000; see p19). This is double United's Ed Woodward gets, although perhaps its his pay that is disproportionate.

For perspective, £6m is £120k per week, which puts him on par with the top paid players and possible Poch with his new deal.
 
jts1882 said:
Levy's pay increase is going to cause a stir, assuming that he is the highest paid director (£6,013,000, up from £2,843,000; see p19). This is double United's Ed Woodward gets, although perhaps its his pay that is disproportionate.

For perspective, £6m is £120k per week, which puts him on par with the top paid players and possible Poch with his new deal.
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I might be totally off but as United are a limited company they may have limits set by shareholders on payments to club incumbents? but as Tottenham Hotspur are not privately held they can basically pay themselves what they want?

Now Im not upset that Levy is getting paid well. He has transformed this club. But I hope he thinks that along with himself some of the players need to be paid the going rate.
 
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