Football finance expert Kieran Maguire has said that even though Tottenham Hotspur have posted a significant loss during the previous financial year, the club remains a very attractive proposition to potential investors.
Spurs released their financial results for 2022-23 earlier this week and while the club had managed to generate a record revenue of over half a billion, they had also posted a loss of £86.8m due to an increase in operating costs.
In the report, Daniel Levy revealed that Tottenham have spoken to potential investors in order to continue to invest in the team and undertake future capital projects.
The Daily Mail revealed a couple of days ago that Qatar Sports Investments, who own Paris Saint-Germain, had previously held talks with Spurs while many American investors are also circling over the club.
Maguire noted that Tottenham’s revenue streams are quite strong but he pointed out that the club need to be back in the Champions League in order to make a profit.
He told i news: “If their ambition is to compete for trophies then it [matchday revenue] is absolutely critical. If we go back to when the club was at White Hart Lane, they were generating around £35m from ticket sales. So that’s an increase in matchday revenue of £82m from what was a pretty mediocre season last year.
“I think they do have a grand vision. It has not been converted as yet into success on the pitch but the fact that they have overtaken Arsenal in terms of their wage bill and there has been significant investment in the squad, eventually you’ve got a chance of that turning into something more successful on the pitch.
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“Even given where Spurs are today in terms of the success of the stadium and their ability to monetise it for more than just home matches, participation in the Champions League is probably what’s needed to convert a loss-making club into a profitable one.”
Tottenham are attractive to investors
However, Maguire pointed out that despite the loss Spurs have posted, investors will be ready to put their money into the club, given the infrastructure that is now in place.
He added: “I think they are spectacularly attractive [to investors]. The infrastructure cost has already been incurred so it’s not like buying a house and needing to fit a new kitchen and so on.
“The training facilities are the best in the country, the stadium is the best in the country in my opinion. It’s a London club with history and heritage. I think we are looking at the international ownership market here. It would be very attractive to anybody that wants to make a mark.”
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The rising operating costs are a matter of concern and that is partly down to the fact that Tottenham have made a few mistakes in the transfer market over the last few years. However, that seems to have changed with Postecoglou now at the helm.
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