What made Tottenham Hotspur shares plummet and lose money?
Tottenham Hotspur boss Daniel Levy recently revealed that the club is in talks with a number of investors to buy its shares after the Premier League club made an after-tax loss of 86.8 million pounds (Rp1.7 trillion) during the one-year period ending 30 June 2023.
Although Spurs recorded a turnover of 549.6 million pounds (IDR 11 trillion) during the year period, operating expenses rose 21 per cent. The increase in operating expenses was due to investment in buying new players.
Tottenham’s allocated player salary budget rose 20 per cent to 251.1 million pounds (IDR 5.04 trillion). Tottenham is in the fifth largest position in the Premier League after Manchester City, Liverpool, Chelsea, and also Manchester United.
The pressure of the after-tax loss prompted the club’s owner, ENIC Group, to sell its shares to investors willing to honour the price they offered.
However, according to a source to ESPN, the Spurs owner will not sell all of his shares, but only some of them.
Tottenham Hotspur’s hopes
James Maddison and Guglielmo Vicario’s signings were part of that accounting period, as was the arrival of Beth England from Chelsea in January 2023 for a fee believed to be in the region of £250,000, a record between Women’s Super League clubs.
But the vast majority of Tottenham’s summer activity came after June 30 including Harry Kane’s move to Bayern Munich, worth up to €120m.
Tottenham’s £1 billion stadium is key to driving their future growth with Beyonce’s five-night run of shows last summer the “highest-grossing concert ever staged by a female artist at the time”, a feat since surpassed by Taylor Swift.
Spurs also have a 15-year partnership agreement with Formula One to host an electric karting experience at the stadium and recently extended a contract with the NFL through to the 2029-30 season to stage matches at the venue.
Levy’s personal income rose from £3.3m to £3.6m in addition to a £3m ($3.7m) bonus — an increase which may anger supporters who recently objected to the club’s decision to increase ticket prices by 6%.
It will be interesting for us to see what steps Daniel Levy will take in dealing with the Tottenham Hotspur share issue. Make sure you keep an eye on Football Wowkia to get more information and interesting content from us.