Rebrov failure leads to £8.6m Spurs loss

A downturn in the transfer market and a markdown of the value of the striker Sergei Rebrov helped push Tottenham Hotspur into the red in the first half of the financial year.

Spurs, eighth in the Premier League and two points off a Uefa Cup place, reported a pre-tax loss of £8.6m for the six months to December 31, compared to a profit of £2.9m last time around. Turnover grew slightly to £32.8m.

"The main reason for the difference in results below the operating profit level is that this year's player trading takes account of a material accounting write down of £5.1m on the valuation of Sergei Rebrov's registration," chairman Daniel Levy said in Spurs' results statement on yesterday.

"Since the collapse of ITV Digital in the UK and the curtailment of various media operations across Europe early last year, and recently imposed transfer windows, player-trading opportunities have diminished as a result of the severe illiquidity of the transfer market," he added.

Rebrov joined Spurs for a club record £11m in June 2000 but the Ukrainian international failed to make an impact at White Hart Lane, scoring just 17 goals in two and a half years.

After a prolonged attempt to offload him, the 28-year-old finally signed for Turkish club Fenerbahçe on an 18 month loan deal last month.

"The decision to dispose of the player on a long-term loan agreement reinforces the company's commitment to reducing player wages in the future," Levy said. "We have learnt lessons from the expensive acquisition of Rebrov. We continue to monitor our players' contractual situations."

Spurs' wage bill rose after Robbie Keane and Jamie Redknapp were signed in the close season. This will have been offset in the second half of the year by the departures of Les Ferdinand, to West Ham, Stephen Clemence to Birmingham, Tim Sherwood to Portsmouth and Rebrov in the January transfer window. A spokesman said the club's total wage bill had decreased slightly to around 52 per cent of turnover.

Levy said: "We currently face some very significant challenges, but your board is confident that the changes which have taken place in the business to date mean that we are well positioned to benefit from the future success of the team."

Due to the poor results, the Spurs board decided not to recommend an interim dividend to shareholders.

Spurs' shares stood unchanged at 17p midway through trading yesterday. The stock market listed company's market value is just over £17m.

Levy's company ENIC, which took control of Spurs in 2001 after buying out former chairman Alan Sugar's stakeholding, announced this week it had received a takeover approach which could lead to an offer for the firm.

Levy's aim is to purchase more shares in ENIC which will give him greater flexibility with decision-making and action over in key areas like transfers.

Tottenham were dealt another blow yesterday after an Essex council refused to grant them permission to build a new academy and training ground for which Levy raised a £75m bond through city financiers.

The money was also earmarked for the potential redevelopment of White Hart Lane but mainly for building the new facility at Epping Lane, near Abridge, Essex, which would eventually have replaced Spurs' current training facilities at nearby Chigwell.

However, Epping Forest council were concerned about traffic problems in the area and Spurs director Paul Kemsley said: "I'm sorry they have taken this decision even though we have worked many months with the council over answering all the questions they raised.

"But we remain committed to developing a new football academy and still believe that the Epping Lane site is a very strong candidate."

Even so, the setback is doubtless a big disappointment for the North London club in a week during which Levy was given board approval to lead a management buy-out.