Financial Results Year End 30 June 2020

Financial highlights

Revenue for the year ended 30 June 2020 was £402.4m (2019: £460.7m). Reduced revenues were predominantly driven by lower Champions League receipts and the extension of the season beyond the year end.

Operating expenses before football trading have increased to £358.1m (2019: £312.8m), driven by a full year of depreciation of the Tottenham Hotspur Stadium (THS) of £71.0m (2019: £24.9m).

Profit from operations, excluding football trading and before depreciation and exceptional items, was £115.3m (2019: £172.7m).

The Club made a loss after all charges including amortisation of player contracts, the rebate to broadcasters centrally agreed by the Premier League, interest and tax of £63.9m (2019: profit of £68.6m).

Matchday revenue

Premier League matchday and catering receipts were £81.9m (2019: £64.2m) with 14 of the 19 home matches played prior to the COVID-19 outbreak at the THS with fans, the remaining five home matches being played behind closed doors. The 2018/19 season was played at Wembley with the last five games of the season at the new THS.

Gate receipts from the UEFA Champions League and domestic cup competitions were £12.6m (2019: £17.5m). This represents the 14th time in the last 15 seasons that the Club has played in Europe.

Broadcasting and media revenues

Premier League broadcasting and media revenues decreased to £95.2m (2019: £149.9m). This was the result of revenue being deferred to the 2020/21 season in respect of those games played post year end. Champions League prize money reduced to £51.2m (2019: £94.0m). The Club reached the last 16 of the UEFA Champions League (2019: Final).

Commercial revenues

Commercial revenues were £161.5m (2019: £135.2m) which started to show the potential from merchandise, third party events and sponsorship revenues derived from the THS.

Net interest

Net interest was £43.2m (2019: £25.2m) which included imputed IFRS notional interest on player purchases, commercial revenues and lease obligations in line with the adoption of IFRS 16. It includes net bank interest expenses of £21.0m (2019: £12.8m). Bank interest was capitalised during the stadium build and on opening is expensed at lower long-term fixed interest rates.

Net assets

At the year end the cost of the Club’s property assets were £1.54bn (2019: £1.49bn) and intangible assets (player registrations) £397.1m (2019: £332.1m) before amortisation. Total assets were £1.87bn (2019: £1.69bn) resulting in property and intangible assets after depreciation and amortisation of £1.58bn (2019: £1.54bn).

With this backdrop the Club refinanced its debt portfolio extending it to an average maturity of 23 years and bringing the weighted average interest rate down to 2.67%. At the year end the Club had net debt of £604.6m (2019: £534.3m).

Chairman, Daniel Levy:

“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.”

Five year review - please click on the link below (pdf) for a five year review table...