Football Finance expert says that despite the significant losses that Tottenham have announced, the club are still not anywhere close to breaching the Premier League’s profit and sustainability rules.
A week ago, Spurs released their financial results for the 2022/23 year running to the end of June and the report made for interesting reading.
One thing that might have caught the eye of fans was the hefty loss of £86.8m that Tottenham posted during the year, bringing the total losses over the past three years to £232m.
That might be a matter of concern for some, given that the Premier League have sanctioned multiple clubs this year for failing to comply with PSR.
However, Football.London’s Alasdair Gold explained last week that Spurs do not have anything to worry about for the time being as the annual depreciation charge of their stadium is not included in the PSR calculations.
Tottenham are not in trouble with Financial Fair Play
Maguire has now confirmed this sentiment, giving a more detailed explanation of the situation. He revealed that the depreciation costs of the stadium amount to £72m per year, which brings Tottenham’s total losses to a three-year period to almost zero when it comes to PSR.
MORE SPURS STORIES
Maguire told Football Insider: “Some people are suggesting that Tottenham are in trouble because if you take a look at the losses over the past three years it is now in the region of £220 million.
“However, there is nothing to worry about from a PSR point of view. The reason for that is that infrastructure costs are excluded from PSR and Tottenham’s depreciation of infrastructure assets is around about £70 to £72 million a year.
“So of that £220 million loss, you can immediately add back £210 million over the three years. So for anybody thinking that Spurs are under pressure to comply with the rules, it is not the case.”
Spurs Web Opinion
While Tottenham might not be close to breaching PSR, the losses the club have posted over the last few years clearly show that the current rate of increase in operational costs is not sustainable unless we return to the Champions League.
However, the market has already adjusted a bit after the Premier League decided to enforce the financial rules and I suspect we will see transfer fees and wages continuing to drop across the game over the next two years.
Keep up to date with all the latest Tottenham news and opinion by following SpursWeb’s Facebook, Twitter and Instagram accounts.
