Question 13

Spurs eye success as profits soar

Chairman Daniel Levy wants Tottenham to deliver on the pitch - after announcing a record annual profit of £4.1m for the year ending 30 June 2005.

They recorded an increased turnover, plus a profit on player sales of £5.6m.

"We now need to deliver success on the pitch if we are to continue to invest at this level," said Levy.

The results come a year after Tottenham revealed annual losses of £2.7m, with a ninth-placed Premiership finish cited as a prime reason for the turnaround.

Tottenham's spending on players over the past two years has risen to £61.8m and Levy now wants success on the pitch to follow that large investment.

Their improved league finish, from 14th in 2003-04, helped Tottenham's turnover to exceed £70m for the first time.

That £70.6m income was a step up from £66.3m in 2004.

Source: BBC News 5^th October 2005 (adapted)

Questions What was the percentage increase in turnover? By how much did the profits on sale of players increase? Calculate the profit/sales ratio for both years and comment? If the profit on the sale of players was £5.6m and turnover had increased, why was the annual profit only £4.1m?