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Tottenham player sales fuel profits

STORY HIGHLIGHTS
  • Tottenham Hotspur announce record pre-tax profits of $55.6 million
  • Profits resulted from player sales including Dimitar Berbatov's $50 million transfer to Manchester United.
  • Premier League continues to buck the recession.
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(CNN) -- English Premier League club Tottenham Hotspur have announced record profits as a result of large gains from player transfers, despite difficult economic conditions.

Tottenham, who currently lie fourth in the Premier League table, reported on Tuesday that pre-tax profits for the year up to June 30 jumped up to $55.6 million, up from $5 million last year.

In summer 2008, striker Dimitar Berbatov moved to Manchester United for a club record fee of around $50 million.

This contributed to a record player trading profit of $94 million, a dramatic increase on the $27 million from 2008.

The announcement is more evidence of the continued financial resilience of English football despite the global economic downturn according to industry experts.

In February this year the Premier League sold television broadcasting rights in Britain for just under $2 billion, which despite coming in the midst of the recession was an increase on the previous deal.

Football is very much a short-term business whose nature is to get ahead of themselves and end up in difficulty
--Journalist Roger Blitz

The biggest transfers in the preseason transfer window mostly originated from Spain's La Liga -- with Real Madrid plundering the EPL for Cristiano Ronaldo and Xavi Alonso -- and Italy's Serie A, but England continued to spend big.

The Financial Times' Leisure Industries Correspondent Roger Blitz believes profits such as Tottenham's from the selling of assets in times of downturn is no surprise.

"The point is here that it's basically through player trading that they have got these results," he said.

"You could argue that Tottenham have spent very heavily in the past and they are making up for it slightly with the sale of players like [Dimitar] Berbatov."

With planned major investments in stadia for the likes of Tottenham and Liverpool, Blitz views the short-term planning tendencies of those within football as the biggest threat to the financial health of Premier League clubs.

"I think it goes with any business that you need to be well-managed and look to the long-term," he said.

"Football is very much a short-term business whose nature is to get ahead of themselves and end up in difficulty.

"That shouldn't really apply to Premier League clubs and is more likely to be lower down as clubs try to get promoted from the division below."