A finance expert reveals that COVID-19 might not be all bad for Levy and the board's pockets
A finance expert
reveals that it might not be all bad for Levy's and the board's pockets.
By Don Scully
Finance expert Kieran Maguire has told Football Insider that he remains
optimistic about Tottenham's current financial situation regardless of the
COVID-19 pandemic hitting the club.
The club had disclosed that they've made losses of £63.9m in their last
accounts. This will hit the pockets of Levy and his board badly. However, the
Financial expert has also reported that the club currently paid £100m per year
less than some of our rivals (the big six) when it comes to wages. This isn't
really surprising as Levy has always been tight-fisted where players wages are
concerned (compared to the other top clubs). Of course, this might now have
worked in Levy's favour.
Our top earners at the club are Harry Kane and Tanguy Ndombele, both on
around £200,000 per week. This obviously doesn't include Levy and the board
payouts, who are taking more out of the club… because they believe they earned
it. And, why not? I hear you shout. What is the point of creating a cash cow if
you are not personally going to gain!
Anyway, slightly sidetracking there, Maguire revealed that the club's
current wage bill is £181m, lower than Arsenal (£225m), Chelsea (£283m) and Man
United (£284m). Between 2019 and 2020, our wage-to-turnover rate was said to
rise from 45% to 59%. Our lower wage bill also shows why these other clubs that
pay high wages will get the trophies (or have won more trophies in their
history, than us). Pay peanuts, and you get monkies.
The finance expert also said that, once fans are allowed back in, our
matchday sales will give us more flexibility in our financials. This means in
plain English, Levy, the board and shareholders will start getting their
dividends back to the high financial level as before. As for the players' wages
and splashing out for more top players, nothing will really change (the tight
fist will stay clenched). We will always be second rate compared to the other big
clubs when looking at challenging for the League title and European Champions
League.
The financial expert also said (Football Insider): "They've
[Spurs] got a lot of flexibility. They earn more from matchday sales than
anyone else. They've even leapfrogged Man United. Assuming that on the back of
the vaccination, we return to having crowds, they will end up with the highest
matchday revenue in the Premier League, which is a really amazing achievement.
So 2020 has hit them hard. But even with that taken into account, their
wages-to-turnover was still only 59 per cent. It was 45 per cent the previous
year, so it has gone up, but it still substantially lower than other clubs.
Spurs' bill is £181m, Arsenal's is £225m, Chelsea's £283m, Man United's £284m.
So their wage bill is £100m less than two of the clubs that they need to
leapfrog. So they do have the scope to spend more."
So, Levy, Lewis, the board and the shareholders will be ok in the long
run. The team will continue to be starved of the sort of funds that the other
top clubs give their managers' (Chelsea, United, City, Liverpool and Arsenal).
However, that won't stop Levy and co from demanding a top-four spot and
silverware from their managers. I don't think Levy and co expect us to win the
League any day soon, but so long as we get into the top four and make money to
enrich their pockets, that is all that counts.
The only thing that will change is the managers flowing through Levy's
fingers. Levy needs trophies to get the fans off his back, and any trophy will
do that is within his players' capabilities/ wage structure's earnings; in
other words, FA Cup or League Cup. The other big trophies are beyond his
players' earnings' competence.
As I said, the Tottenham stadium is a cash cow (once we get back to
normal). Levy can go back to arranging American Football, concerts, boxing
matches, Rugby, football, anything that will make him and his board/
shareholders richer. And you don't get rich by competing financially with the
top five's wage structure.
Don Scully
What errant rubbish. Your financial expert is anything but
ReplyDeleteHe isn't mine but a well respected football journalist. Besides, what I had written might be slightly tongue in cheek, but it is all accurate (about Levy's penny pinching). He is the highest paid director in the football world.
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