Tottenham’s financial strategy, orchestrated by chairman and co-owner Daniel Levy, has been illustrated by new information emerging now.
Spurs are considered one of if not the best run clubs in the Premier League by most financial analysts.
And while this view has not always been shared universally among Spurs fans who have pined for more ambition, there can be no doubt that Levy runs a tight ship.
Tax data shows Spurs’ modest spending
The ENIC group’s strategy has always been to pursue sustainable growth as opposed to a scattergun approach in the transfer market that delivers short-term results but hampers the club in the long run.
This can be seen in the club’s investment in the stadium, which is now worth well over £100m per year for the North Londoners.
It is also reflected in the wage budget.
Spurs spent £209m on wages last term, which was the fifth-highest budget in the Premier League but was only 46 per cent of their turnover.
That’s the lowest ratio of any Premier League club.
And the latest figures from the International Sports Tax Association demonstrate that this has been a long-running theme, all the way back to the advent of the Premier League.
The study shows the total employment taxes contributed by Premier League clubs in the competition’s history.
Spurs are one of six clubs to have spent all 32 seasons in the top flight and are sixth on the list of all-time employment tax contributors.
But their total of £1.387bn is closer to the likes of Everton (£1.12bn) and Newcastle United (£991m) than it is to fifth-place Arsenal, whose contributions have amounted to £1.961bn.
Spurs total is only just over half of what biggest contributors Chelsea (£2.581bn) and Man United (£2.549bn) have accounted for over the same period.
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Why are Spurs so well run?
Tottenham have the second highest EBITDA (earnings before interest, tax, depreciation and amortisation) in the Premier League.
Only Arsenal have a better EBITDA than Spurs across the metric, which evaluates baseline business performance outside of one-off events, like player trading.
It is a key indicator of the enterprise value of a football club and how much an investor could hope to recoup from their original purchase price.
That too could be key as Levy seeks fresh investment in the club, either in the form of a full or partial takeover.
And with a squad cost control ratio that will limit clubs to spending 85 per cent of turnover on wages, transfer and agent fees set to be introduced on a trial basis from next season, Levy’s restrained, revenue-first approach looks set to pay dividends.