Football Finance expert Doctor Dan Plumley has backed Tottenham Hotspur to bounce back from the impact of COVID-19 despite the pandemic hitting the club at the worst possible time.
As a result of the pandemic, Spurs have not yet had a full season of capacity crowds at the Tottenham Hotspur Stadium despite the venue being open for two and half years.
The club released its financial results for the 12 months ending June 2021 and their revenue was down by £40.5m from June 2020.
This was mainly due to matchday revenue falling from £94.5m in the previous year to £1.9m as a result of the pandemic.
This meant that the club’s debts increased from a figure of £605m the year prior to £706m at the end of this financial year.
With revenue streams now back to normal, Plumley believes Spurs will be able to recover from their losses thanks to how well they are run.
He told Football Insider: “There is no good time to have a pandemic but it really collided with them at the worst possible time because they had big plans for that stadium and still do.
MORE SPURS STORIES
“They have been put on hold for the past few years. They have the NFL contract and one-off events like the Anthony Joshua fight, of course.
“Those were all built into the financial model. The club has taken on a lot of debt with that stadium with a plan in mind to pay it off with the other stuff.
“It’s a long-term investment that has been paused. Their loss this year has been driven by the matchday revenue and all the wraparound stuff there.
“They historically run a sustainable business model and you would expect them to bounce back.”
Spurs Web Opinion
While Daniel Levy is not a popular figure among large swaths of the fan base, I was pleased that we had a financial prudent person like him in charge when the pandemic hit, given that we had just incurred substantial debt on the stadium.
Hopefully, the club will be able to bounce back quickly, now that revenue streams are back to normal. However, under the current climate, nothing seems to be guaranteed, especially given the fears surrounding the new omicron variant.
Keep up to date with all the latest Tottenham news and opinion by following SpursWeb’s Facebook, Twitter and Instagram accounts.
