Tottenham Hotspur's spending in the transfer market must be smart and sustainable, Chairman Daniel Levy said as the Premier League club on Monday announced a fall in revenue on top of mounting challenges on the pitch.
Spurs' revenue fell 4 per cent for the year ending June 2024 from 549.6 million pounds ($709.53 million) in the previous year to 528.2 million, while the club reduced losses after tax, with a deficit of 26.2 million pounds from 86.8 million in 2023.
Levy, who has been criticised by fans for not spending enough on the squad, defended his investment in players while reiterating Tottenham's need to be financially sustainable.
"Since opening our new stadium in April 2019, we have invested over 700 million pounds net in player acquisitions," Levy said in a club statement released on Monday.
"Recruitment remains a key focus, and we must ensure that we make smart purchases within our financial means.
"I often read calls for us to spend more, given that we are ranked as the ninth richest club in the world. However, a closer examination of today's financial figures reveals that such spending must be sustainable in the long term and within our operating revenues.
"Our capacity to generate recurring revenues determines our spending power. We cannot spend what we do not have, and we will not compromise the financial stability of this club."
Key to the fall in revenue was a drop in Uefa prize money, as the north London club earned 1.3 million pounds in 2024 compared to 56.2 million the previous year due to their absence from European competition.
While television revenues rose from 148.1 million pounds to 165.9 million, matchday revenue fell from 117.6 million pounds to 105.8 million due to the drop in the number of matches.
Levy labelled the 2024-25 season on the field as "highly challenging", with Spurs languishing 14th in the Premier League.
The team's hopes of ending a 17-year trophy drought rest on their Europa League campaign where they are set to face Eintracht Frankfurt in the quarterfinals this month.
However, Levy remained optimistic about the club's future as they "continue to build for success on the pitch."