Writer: Cleveland ARTSPURS
Date:Thursday December 19 2013
As another manager departs from WHL and drives off into the sunset for the last time, it is predictable that the spotlight will now fall on Daniel Levy and ENIC's, handling of the situation.
AVB was sacked as progress failed to match expectation. The purpose of this article therefore, is designed to explore how ENIC's expectation coupled with the fans' expectation relates to ENIC's financial and football operating model, and whether all are truly compatible. In 2001, ENIC effectively bought a controlling influence in THFC, and Daniel Levy took over as Chairman. It's safe to say that when the takeover happened Spurs were regarded as a 'sleeping giant' both off the pitch and on it.
ENIC's philosophy has always been to run the club as a regular profit and loss business, where operating costs are balanced with annual revenue, and to increase the value of the brand. ENIC through their various activities have been successful in increasing the value of THFC since 2001 to £332M (forbes April 2013). We are currently 11th on the Forbes list. Each year THFC makes either a small net profit or loss, no substantial debt has been leveraged against the club and runaway losses do not occur year in year out. A brand new stadium is also in the pipeline.
On the pitch THFC have gone from perennial, mid table under achievers to a well-established top 5 team. We have endured when some of our traditional rivals such as Villa, and Liverpool have faltered due to their own financial constraints or owner mismanagement. We have had stronger squads in the last 5 years compared to before. We have had one foray into the CL, however our trophy cabinet is dusty and bare, and this is a criticism often aimed at ENIC. Our last success was winning the CC in 2008.
ENIC's philosophy has been to develop young players, or buy young promising talent. This approach was reinforced last year with the opening of the new training facilities and shows Spurs' commitment to youth. This approach however has seen a high turnover of players and another major criticism often aimed at DL and ENIC is that players recruited do not always meet our needs. As an aside, we have developed a few star players, but have sold them all for profit. Many will say that we had no choice as all those players wanted to leave, but how can we succeed if we sell our best players?
Our recent net spends on the playing staff have also come into question. Even though, this summer we brought in 7 new faces, we actually made a £6M profit on player trading, and this is another bone of contention for many. Our financial prudence in this area however is largely responsible for our financial stability as a whole. This model has been great for us during our rise through mid-table towards the top, however in the PL, there exists a top tier of 4, and then the rest.
Making the transition from 4th to 5th regularly is akin to trying to cross the Grand Canyon using a tight rope. Above us are at least 4 clubs who can all outstrip us financially either via revenue, prestige, or the contribution of a billionaire It is possible to take a mid-table club to the top. The Man City owner proved that. In 4 years and ~£1B they went from further back then us to PL champions.
Our current model may therefore restrict us in our ambition, Are our expectations as fans and ENIC's as custodians, therefore unrealistic with respect to the model currently propagated at the club? Does it need to change? Does trying to compete, put the financial foundations of the club at risk and is this a risk too far? One final criticism often levelled at the current regime, is that on our board their sits ~£4.5B worth of investors, and that they like Mansour should personally bank roll the club. Since 2001 ENIC have undoubtedly improved us, but is their model limited? How do people see the future for us and other similar clubs in their quest to compete with the elite?
Written by Cleveland ARTSPURS
Date:Thursday December 19 2013
Top 4 Phobia/and over inflated egos. (Tuesday March 11 2014)
Time for ENIC to go! (Monday March 10 2014)
Put up or shut up! (Monday March 10 2014)
CESARE PRANDELLI AT THE LANE? (Monday March 10 2014)
Has Tim talked himself out of a job? (Sunday March 9 2014)
CHELSEA vs SPURS: The Report!. (Sunday March 9 2014)
Chelsea vs Tottenham Hotspur. (Friday March 7 2014)
Let Battle Commence! (Friday March 7 2014)
Ashley Cole? (Thursday March 6 2014)
Global Support.. the 13th Man! (Thursday March 6 2014)
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