Former Manchester City financial adviser Stefan Borson has revealed that there is now a big responsibility on Tottenham’s owners after the club released their latest financial results.
On Monday, Spurs released their financial statement for the year ending June 2025, and it made for some very interesting reading.
Thanks mainly to the club’s Europa League triumph last season, their revenue increased to a record £565.3m, which is a 7 per cent increase from the previous year.
However, Tottenham’s Profit from Operations (EBITDA) decreased to £112.3m, a 22 per cent drop, while the club’s Loss after Tax increased to £94.7m.
Expert claims Tottenham’s owners need to inject more cash into the club
Tottenham’s financials also showed that their net debt as of June 30 of last year was £831.2m, up from £772.5m in 2024.
Stefan Borsen has now explained that the club’s debt is not a pressing issue, given the low interest rate and long-term nature of their borrowings.
However, he pointed out that the club’s accounts do show a clear cash flow problem, explaining that the Lewis family may have to inject more money into Tottenham Hotspur as a result.
Reacting to Spurs’ financial statement, Borsen told Football Insider: “I don’t think the debt itself is going to be the end of the world. It’s a very well packaged facility in that large chunks of it are long-term, low interest rates. If they have covenants, the covenants are manageable.
“Even if they breach those covenants, it’s still manageable. Nobody’s going to ask them to repay the money anyway, so the debt side of things is under control.
“Now, that’s not to say they don’t have some issues with cash. They will have. There will be less cash in the business and they will have to raise money from the shareholders.
“The shareholders will have to put their hand in their pocket to fund the club over this period. I don’t think there’s any question there. But I assume they’re in a position to be able to do that, so it shouldn’t be too much of a problem.”
Spurs could lose hundreds of millions in the event of relegation
The former Man City advisor made it clear that relegation from the Premier League will have devastating consequences on the North London club’s balance sheet.
Borson suggested that the Lilywhites would be losing hundreds of millions in revenue if they spent a season in the Championship.
When asked how relegation could affect the club’s bottom line, the finance expert responded: “The bigger issue is just a huge loss of revenue. It’s £200-300m, depending on really two main things. We can model out broadcast revenue fairly precisely. Parachute payment plus EFL money is about £55m, going from what it is this season of about £200m if they were to be relegated. They’d lose £145-150m there.
“Commercial is a bit more difficult to model out, but you would think they’re going to lose £50-100m. It depends whether the relegation release clauses from some of the contracts, and it depends how much of say the £290m that they’ve probably got this season was related to Champions League. When we get their accounts, we’ll have a bit more information, but not a lot. But you’ve got £50-100m there.”
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