SpursPapers

EXPLAINED: TOTTENHAM'S MASSIVE PSR CAPACITY 📊💰 As discussed on Talksport yesterday (youtu.be/uIjdvSE8DWA?si=ua9L…), Spurs undeniably have huge PSR capacity. Here's a breakdown: 1️⃣ Estimated Loss: Tottenham's reported operating loss over the three-year PSR monitoring period is around £195m. 2️⃣ Allowable PSR deductions: Spurs have very high allowable deductions of c£280 million, largely due to depreciation related to their stadium. These deductions significantly reduce their adjusted PSR loss/create adjusted profit. 3️⃣ Adjusted PSR profit: Thanks to these deductions, Spurs actually end up with a near £60m profit for 23/24 season and a three year c.£85m adjusted PSR profit. 4️⃣ Headroom: This means Tottenham had a significant c.£190m headroom against the maximum allowed loss of £105 million under PSR for the 23/24 cycle. 5️⃣ But wait, there's more: As approx. £60m loss from 2021/22 drops off in the 2024/25 monitoring period, Spurs have even more financial flexibility this season. 6️⃣ But wait, there's more 2: Conservatively, Spurs are headed for revenue of £580m+ for this season/financial year (24/25)(23/24 was c.£530m). Even if the wages remain at 43% this would move them up to £250m for the season. Add in, say, £20m player trading profit and that gives another year of PSR losses within the £35m limit and a forecast headroom of £140m for 24/25. 7️⃣ But wait, there's more 3: Huge spending would be required to come close to eroding a headroom of this size. Remember the 2 key PSR lines when you spend are amortisation (fee inc costs/5) and the incremental wages. Even if Spurs spent £100m on Monday on a player on £10m pa, the 24/25 PSR cost would "only" be (£100m/5)*(5/12) plus £10m*(5/12) ie £12.5m! Not even 10% of the forecast 24/25 PSR headroom. 8⃣Conclusions: 🔹 Spurs have significant financial flexibility under PSR - there are other factors (cash, owner desire) but PSR capacity is not a hinderance 🔹 High allowable deductions (mostly from stadium depreciation) mean they are comfortably compliant even if they spend big on players Spurs can spend hundreds of millions on signings and wages and still not risk a 24/25 PSR breach