On the latest episode of the Last Word on Spurs podcast, Ricky Sacks and Lee McQueen were joined by football finance expert Kieran Maguire to discuss the finances at Tottenham Hotspur.
One topic of discussion on the recent episode, which was titled: ‘Tottenham Hotspur – Behind the Finances’ – was a comparison of Tottenham Hotspur’s and Newcastle United’s finances.
Maguire makes the point that both Spurs’ and Newcastle’s owners have faced their critics, and it seems as if the Toon will be stuck with Mike Ashley for a while longer after the Saudi Arabian-backed consortium pulled out of a deal to take over the club (per BBC).
Here’s what the finance expert had to say about the two clubs on the podcast:
“Spurs are not a toy to ENIC or Daniel Levy, in my opinion. It is seen as a business.
“If I contrast Spurs with another club where the ownership is not particularly popular: when Mike Ashley acquired Newcastle, Spurs and Newcastle were roughly the same financially, and now Spurs are streets ahead. Now, that’s on the back of regular appearances in the Champions League.
“Clearly, they would have had a very successful financial year, this year, had the pandemic not arisen, and they would have had the benefits of a full year of activity in the new stadium.”
TIF Thoughts…
Mike Ashley became the majority shareholder at Newcastle United in 2007, acquiring the club for around £133 million (per The Guardian).
Although Maguire suggests that in terms of finances, the two clubs were at a similar level back then, the 2006/07 season saw Spurs finish fifth in the Premier League, whilst the Magpies secured a 14th placed finish, so results on the pitch were obviously very different, and the North London club clearly will have benefitted financially from securing European football.
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Since then, the Lilywhites have established themselves as regulars in Europe, whereas Newcastle last featured in Europe in 2013, when a 4-2 aggregate loss against Benfica ended their run in the competition.
Therefore, you can perhaps understand why Spurs are now “streets ahead” of the Toon, however, it certainly seems as if Daniel Levy’s smart business model, especially with regards to the new stadium, has a lot to do with the North London club’s recent financial success.