Tottenham Hotspur Plc Annual Report 2008 C L P M O C
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T o t t e n h a m H o t s p u r p l c A n n u a l R e p o r t 2 0 0 8 Tottenham Hotspur plc Annual Report 2008 Tottenham Hotspur plc Bill Nicholson Way 748 High Road Tottenham London N17 0AP tottenhamhotspur.com Our club Our business Our results Directors, officers and advisers Our club Our business Our results 02 Our club 18 Chairman’s statement Financial statements 12 Our community 22 Financial review 34 Consolidated income statement 14 Our plans 24 Directors’ report 35 Consolidated balance sheet 27 Corporate governance 36 Consolidated statement of changes 29 Statement of Directors’ in equity Executive Chairman Auditors responsibilities 37 Consolidated statement of cash flows 30 Remuneration report 38 Notes to the consolidated accounts D P Levy Deloitte & Touche LLP 32 Independent auditors’ report 58 Five-year review Chartered Accountants 59 Independent auditors’ report Executive Director 60 Company balance sheet London 61 Notes to the Company accounts M J Collecott Additional information Bankers 66 Notice of Annual General Meeting Non-Executive Directors 71 Appendix HSBC Bank plc IBC Directors, officers and advisers E M Davies* 70 Pall Mall Sir K E Mills** London SW1Y 5EZ Company Secretary AIM nominated broker and adviser M J Collecott Seymour Pierce Limited 20 Old Bailey Registered office London EC4M 7EN Bill Nicholson Way Registrars 748 High Road Tottenham Capita Registrars London N17 0AP Northern House Woodsome Park “WE BELIEVE THAT THE CLUB HAS CONTINUED Registered number Fenay Bridge TO BUILD A STRONG PLATFORM FOR THE FUTURE 1706358 Huddersfield West Yorkshire HD8 0LA THROUGH CONTINUED INVESTMENT IN THE * Chairman of the Audit Committee and Member of the Remuneration Committee. TEAM , IN THE INFRASTRUCTURE OF THE CLUB ** Chairman of the Remuneration Committee and Member of the Audit Committee. AND THROUGH THE PROGRESS OF THE TRAINING CENTRE. I AM ALSO DELIGHTED THAT WE HAVE NOW FINALLY AGREED UPON A SOLUTION TO THE CLUB ’S FUTURE STADIUM REQUIREMENTS AND WE MUST NOW REMAIN FOCUSED ON TAKING THE STADIUM DEVELOPMENT PROJECT THROUGH THE VARIOUS STAGES OF CONSULTATION AND ON TO PLANNING. ” Daniel Levy Chairman Designed and produced by Radley Yeldar. www.ry.com 1 Tottenham Hotspur plc FINANCIAL SUMMARY HIGHLIGHTS AND OUTLOOK Turnover £m 2008 114.8 Record turnover 2007 103.1 up 11% on the prior year. +11% Strong performance from all parts of the business. Gate receipts – Premier League £m 2008 18.3 2007 18.1 £33m spent on player acquisitions in financial year. +1% Sponsorship and corporate 2008 27.8 Improved hospitality £m net cash inflow from operations. 2007 25.4 Net debt +9% remains low at £14.6m. Media and broadcasting £m 2008 40.3 New Training Centre 2007 33.7 has planning approval – new build expected +20% to commence in 2009. Merchandising £m 2008 9.7 Over £44m 2007 7.1 committed on property transactions in and around current stadium. +38% New stadium Operating profit before restructuring, 2008 35 depreciation, amortisation and entering consultation period for the football trading £m 2007 32 Northumberland Development Project that includes plans for a new stadium. +9% 2 Tottenham Hotspur plc Our club GROWING... ...THE STRONG GROWTH OF THE CLUB CONTINUES APACE 3 Tottenham Hotspur plc Our club Our club Our business Our results Record One Hotspur Merchandising Turnover has attracted more achieved a 38% up 11% on the than 70,000 members increase in turnover prior year and we now have over during our 125th 22,000 on the Season Anniversary year Ticket Waiting List 4 Tottenham Hotspur plc Our club ENTERTAINING... ...WE NEVER FORGET WE ARE IN THE ENTERTAINMENT BUSINESS 5 Tottenham Hotspur plc Our club Our club Our business Our results We entertain Full house Global reach www. a global audience of Our team played to New research has up to 1.17m fans 4.77bn as part of the near sell-out crowds concluded that our visit our website Premier League throughout the global fanbase now each month season stands at 20m 6 Tottenham Hotspur plc Our club CELEBRATING... CELEBRATING ...OUR 125 ANNIVERSARY AND LEAGUE CUP VICTORY 7 Tottenham Hotspur plc Our club Our club Our business Our results Silverware Wembley Final returned to the Lane Fans travelled from all over the world to witness our victory 8 Tottenham Hotspur plc Our club INVESTING... ...INVESTMENT IN ALL AREAS CONTRIBUTED TO THE PERFORMANCE OF THE BUSINESS 9 Tottenham Hotspur plc Our club Our club Our business Our results Infrastructure Technology Players We continue to spend Off the pitch – On the pitch – on key infrastructure New technologies In the last two years whilst investing now support retail, over £110m has been substantially in the new media, customer spent on players both Club’s future service and ticketing for the First Team and youth teams 10 Tottenham Hotspur plc Our club ATTRACTING... ...OUR REVITALISED ACADEMY HAS ATTRACTED AN ENVIABLE COMPLEMENT OF YOUNG BRITISH TALENT AND YOUTH INTERNATIONALS 11 Tottenham Hotspur plc Our club Our club Our business Our results International experience Our academy players participated in an unparalleled 11 international tournaments during this season, gaining important experience at a young age 12 Tottenham Hotspur plc Our community INSPIRING... ...MANY BUSINESSES TRY TO GIVE SOMETHING BACK TO THEIR COMMUNITIES. FEW HAVE THE POWER TO TRULY ENGAGE 13 Tottenham Hotspur plc Our community Our club Our business Our results Tackling Changing Backed with over £5m from the Quite simply it creates Club since its formation, our opportunities that change lives Foundation uses football and sport to tackle key social issues 14 Tottenham Hotspur plc Our plans BUILDING... ...PLANNING PERMISSION HAS BEEN GRANTED FOR A NEW WORLD CLASS TRAINING CENTRE 15 Tottenham Hotspur plc Our plans Our club Our business Our results 2011 Work is set to begin in 2009 on the 68 acre site. The project is expected to be completed by Autumn 2011. 16 Tottenham Hotspur plc Our plans ASPIRING... ...THE CLUB ANNOUNCES PLANS TO DELIVER A 60 ,000 SEATER STATE-OF-THE-ART STADIUM Key Colour shaded area is the proposed Northumberland Development Project 17 Tottenham Hotspur plc Our plans Our club Our business Our results “IT REPRESENTS A SIGNIFICANT STEP IN THE GROWTH OF THE CLUB WITH A PROPOSED STADIUM CAPACITY OF 60 ,000 AND WOULD PROVIDE STATE-OF-THE-ART FACILITIES , IMPORTANT PUBLIC SPACE , NEW JOBS AND HOMES AND A SIGNIFICANT BOOST FOR THE LOCAL ECONOMY. “ “The Northumberland Development Project would deliver a world Tottenham Hotspur is proud of its roots in Haringey. We have been class scheme and substantial new investment for Haringey and our in the borough for 126 years and the Club is inextricably linked with supporters. It represents a significant step in the growth of the Club, this part of London. We believe that this scheme has the potential with a proposed stadium capacity of 60,000 and would provide to create a truly inspirational environment for the Club and the state-of-the-art facilities, important public space, new jobs community as well as acting as the catalyst for the uplift of the and homes and a significant boost for the local economy. wider area. It would also enable us to provide a new base for the Tottenham We are at an early stage of what is part of our long-term plans for Hotspur Foundation so that its award winning programmes can the Club and now we want the views of local people and our fans. continue and have an even greater impact in the local community. I hope people will take the time to look at our plans and let us have their comments.” Daniel Levy Chairman, Tottenham Hotspur Football Club “SPURS HAS PLAYED AN INTEGRAL ROLE IN GIVING A SENSE OF IDENTITY TO THE AREA IT CALLS HOME. TOTTENHAM WOULD NOT BE TOTTENHAM WITHOUT ITS FOOTBALL CLUB. “ “I am delighted that Tottenham Hotspur has confirmed its We have been working extremely hard to regenerate the commitment to remain in our borough. Tottenham area, which suffered so much from industrial decline. Real progress is being made, and it is extremely pleasing that Spurs We have always regarded Spurs as one of Haringey’s prime assets. has demonstrated that they share our commitment to this continuing They bring major economic benefits to our borough and carry out regeneration. some excellent community work through the Tottenham Hotspur Foundation. But, as always, we will consider very carefully any plans that are submitted to us, as we strive to ensure that a new stadium delivers But more than anything, Spurs has played an integral role in giving real benefits for all who live and work in the area.” a sense of identity to the area it calls home. Tottenham would not be Tottenham without its football club. Councillor George Meehan Leader of Haringey Council £44m Kick start The Club has committed over The Club’s Northumberland £44m buying and taking Development Project has options on 40 residential the potential to kick start the and 160 commercial properties wider regeneration of the area. around the current site to pave the way for a significant mixed use development. 18 Tottenham Hotspur plc Chairman’s statement Chairman’s statement I am delighted to report that in our 125th anniversary year we were Capital projects able to produce another strong performance, a year in which the highlight was undoubtedly winning the Carling Cup in a thrilling The Training Centre project received approval from the planning game at Wembley against Chelsea, bringing the welcome return authorities in 2008. We are currently fulfilling pre-development of silverware to the Club. planning conditions and the project is due to break ground in 2009.