Hi all, Don Scully is back, and he looks at why this Pandemic might not be as bad for Levy and co as initially thought. Levy’s astute penny-pinching – where the players’ wages are concerned – might just have left him, and the board, quids in. What do you think? Wise Levy or not? Glenn
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
I have been following Spurs since the sixties and work in London. My current job is as a professional writer (working in the media), and I have work connections to the club and had previously worked for them. Including working at the old White Hart Lane stadium.
I also have my own blog and have written for the SpursWeb app & its website.