Tottenham Hotspur’s revenue is expected to grow substantially next year due to their participation in the Champions League, but the club are still expected to be in a negative cash balance, owing to their transfer spending.
Tottenham have posted cumulative operating losses of £232m over the last three financial years, despite generating one of the highest turnovers across the Premier League.
This is primarily due to the club’s transfer spending, with Spurs having accumulated a transfer debt of £280m over the past few years.
That is why Daniel Levy warned a few months ago that Tottenham cannot continue spending beyond their means, but the club’s situation has improved as a result of their qualification for the Champions League.
Spurs turnover is expected to rise by over £120m next season
TBR Football have now pointed out that for the financial year ending £528m, Tottenham Hotspur had a total turnover of £528m.
Given the continued rise of their commercial and matchday revenue, along with the Champions League income, turnover is expected to hit around £650m next year.
However, given their enormous transfer debt, the outlet says that the North London club will likely have a negative cash balance.
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It is pointed out that if Tottenham do secure a deal for Mohammed Kudus, that will already take their summer net spend beyond £100m.
That means that despite Tottenham having one of the lowest wages-to-turnover ratios in the Premier League, they will continue to post revenue losses.
Will ENIC invest funds into Tottenham Hotspur?
ENIC have invested just £122.1m into Tottenham since buying the club in 2001, which amounts to just £5.3m per season, with the club following a self-sustaining model.
However, it was reported last month by BBC Sport that ENIC may be prepared to pump funds into Tottenham, with the shakeup at board level this summer expected to be a prelude to them investing some money into the club.