Tottenham start discussions with potential investors
The chairman Daniel Levy's revealed the news after the club's accounts were published
Tottenham are "in discussions with prospective investors" in a bid to "capitalise on our long-term potential", chairman Daniel Levy has revealed.
The Premier League club's total revenue for the financial year to June 30, 2023 exceeded half a billion pounds for the first time, with the figure of ÂŁ549.6million a significant increase on ÂŁ444m for the previous year.
However, operating expenses including first-team costs have risen by 21 per cent to ÂŁ487.9m, with a loss of ÂŁ86.8m put down to "significant and continued investment in the playing squad" in the financial results published by the club on Wednesday morning.
Levy announced in his statement accompanying the results that Spurs were looking for an injection of equity.
He wrote: "To capitalise on our long-term potential, to continue to invest in the teams and undertake future capital projects, the club requires a significant increase in its equity base.
"The board and its advisors, Rothschild & Co, are in discussions with prospective investors. Any recommended investment proposal would require the support of the club's shareholders."
Revenue from match receipts, UEFA prize money, TV and media and commercial all increased on 2021-22, as did the profit from operations which rose from Ă‚ÂŁ112.3m to Ă‚ÂŁ138.7m.
The club report that their net debt as of June 2023 was ÂŁ677.4m. Over 90 per cent of their borrowings of Ă‚ÂŁ851.2m are at fixed rates, with an average interest rate of 2.79 per cent.
"We expect commercial revenues to rise from third-party events, although this will not compensate for the lack of European football this season," Levy wrote.
"Additionally, as reflected in these results, we expect the impact of rising costs, caused by geo-political events, to continue to impact all areas of our operations.
"Our ethos is clear - to be far-sighted and run the club sustainably. This involves strict control of our cost base, increased commercial and sponsorship revenues and consistent European participation, all of which are key to our ability to continue to invest in the squad and win top honours.
"Since opening the stadium in April 2019, we have invested over ÂŁ600million in our men's and women's first-team squads."