- Low wage bill
- Newly expanded stadium
-played champions league four seasons and getting to the finals 2018/19 season.
Recent studies have ranked Tottenham Hotspurs as the most valuable club in the premier league ahead of Manchester city.
The club has not won a trophy since 2008 when they last won the FA cup. The North London team has played in the champions league finals last year where they lost to reigning champions Liverpool. However, it has featured in the champions league for four consecutive seasons.
WHY MOST VALUABLE
The £1 billion stadia which has drawn in significant commercial income.
Tottenham has a low wage budget besides improved infield fortunes have helped increase their value. This is according to the university of Liverpool management school.
Kieran Maguire, who is part of the University’s Centre for Sports Business Group, said: “Spurs are top of the valuation table because in 2018/19 they delivered a Champions League final and a top-four Premier League finish on a wage budget that was £100-150 million lower than the rest of the ‘Big Six’.
“As such, they made more profits, and this was reflected in the final valuation number.”
Over the course of the 2018/19 campaign, Tottenham’s income grew by 21 percent to £461million.
Daniel Levy runs a tight ship at Tottenham (Image: AFP/Getty Images)
Only 39 percent of that total income is taken up by player wages, compared with top-four rivals Leicester, who splash out 84 percent on wages in comparison.
Daniel Levy’s frugality in the transfer market has also paid off, with Tottenham recording the second-lowest net spend on transfers in the division at £22m, behind only Watford (£21m).
In the rankings, Man city comes second ahead of Manchester United, Liverpool, Arsenal, and Chelsea in the top six.
Wolves were highest-ranked clubs outside premier league elites in seventh.
In contrast, those competing with Spurs at the top end of the table forked out huge sums.
Spurs’ new stadium has brought an increase in commercial income (Image: USA TODAY Sports)
Chelsea’s net transfer spend amounted to £290m, in a season where they signed Jorginho (£50m), Kepa Arrizabalaga (£70m) and completed a deal for Christian Pulisic (£57m).
Liverpool was following close behind with a net outlay of £223m, ahead of Man Utd (£135m) and Man City (£87m).
Tottenham recently came under fire for applying to take up the Government’s furlough scheme amidst the coronavirus pandemic.
The club opted to put more than 550 non-playing members of staff on the scheme, thus cutting their wages to 80 percent, before reversing their decision after public backlash.
The enforced break caused by the crisis will still significantly harm Spurs’ finances, however, as well as all other Premier League clubs.
Maguire added: “Club values will take a considerable hit. There are fewer potential buyers in the market and greater uncertainty in terms of clubs’ ability to generate income.
“We have seen the share prices of clubs with shares quoted on the stock exchanges, such as Manchester United and Juventus, fall by 20-30% since the start of the year.
“This is likely to be greater for smaller clubs who don’t have the marketing and reputational might of the well-known brands.”