Spurs announce major financial blow as Levy warns of potential further loss of over £150m

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Daniel Levy
Chris Brunskill/Fantasista / Contributor

Tottenham Hotspur have announced a financial loss of £63.9m for the year ending June 30, 2020, with Daniel Levy warning that figure of more than double that amount next year could be lost if spectators are not allowed back into stadia.

Tottenham made a substantial profit of £68.6m last season but the North Londoners were one of the clubs who were hit the worst by the pandemic due to the substantial debt incurred in the construction of the Tottenham Hotspur Stadium (Forbes).

The club announced a few months ago that they had secured a loan of £175m from the Bank of England to help them navigate the financial crisis.

The scale of the crisis has now been made clear, with the club revealing that they have made a £63.9m loss due to the loss of matchday revenue, decrease in broadcast revenue and the interest on loan taken out for the stadium.

Levy warned that Tottenham could face ‘an irrecoverable loss of income’ of over £150m next season unless fans are allowed to attend matches soon.

He insisted that Premier League clubs can accommodate fans on a reduced capacity while maintaining appropriate social distancing and hygiene standards.

The Tottenham chairman’s message read: “We are currently in the midst of one of the most challenging times ever experienced. The impact of the pandemic on our revenue is material and could not have come at a worse time, having just completed a £1.2bn stadium build which is financed by Club resources and long-term debt. The 2020/21 season has so far seen no fans at games and this is compounded by a loss of third party events such as NFL, concerts, the closure of stores and visitor attractions. Our estimate for the current financial year of the potential loss of revenue, should the stadium remain closed to fans, is in excess of £150m. Clearly this would be an irrecoverable loss of income.

“However, whilst we have been unable to open our stadium to fans, we have opened it to the NHS. Over 41,000 antenatal appointments have been held in our stadium by the North Middlesex Hospital Outpatients Department as we sought to assist with creating more space to treat patients in the hospital itself and provide a safer environment for outpatients. We opened our basement for COVID-19 testing and this still continues.

“We are also working to support over 4,000 direct and indirect jobs together with the wider community who depend on us in an area of significant deprivation.

“Each and every Premier League club makes a significant financial and social contribution to the UK economy and to their local communities as well as being a great British export often showcased by Government departments for trade and culture visits. We have spent the past months preparing our stadium, testing our digital ticketing process and registering ID validation for fans. Premier League clubs are entirely capable, similar to the experience in several other countries, of responsibly delivering outdoor events with social distancing, exemplary hygiene standards, qualified stewards, testing capabilities and diverse travel plans, operating in some of the most technologically advanced venues in the world. We recognise that health and safety are paramount and we have been encouraged by the latest news on vaccine developments and potential Clinical Passports.

“We are immensely grateful to our fans and sponsors for their on-going support at this difficult time. We wish you all well over the festive period and hope we can see supporters return safely as soon as possible.”

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