Tottenham lost 6.6 million pounds ($10.7 million) last season after building a squad that qualified for a first appearance in Europe's elite Champions League by finishing fourth in the Premier League.
Bolstered by extra prize money for its best league finish since 1990, the north London club announced full-year results Thursday showing record annual revenue of 119.8 million pounds ($193.4 million) for the year ending June 30.
Spurs could not match last year's 23.2 million pound ($37.5 million) net profit after buying players including Sebastien Bassong, Peter Crouch and Younes Kaboul, but qualification for the lucrative Champions League will boost income again this season.
The 32 teams from last year's group stage earned at least ?7.1 million ($9.8 million) in prize money even if they lost all six of their first-round matches, with extra cash awarded according to results and in broadcast fees.
Tottenham leads its group after four matches with two wins, a draw and a loss.
''We are benefiting now from our investment to date in the first-team squad,'' Tottenham chairman Daniel Levy said.
Tottenham said total income was up 6 percent, despite last season's lack of European competition, due to a season of sold-out home matches and increased broadcast revenue.
But that lack of European midweek matches contributed to a drop in sponsorship and corporate hospitality income to 25.8 million pounds ($41.6 million) from 27.4 million ($44.2 million), while revenue from ticket sales dropped by a similar amount for the same reason - even though all 38 Premier League matches at the 36,310-seat White Hart Lane stadium were full.
Since June 30, Tottenham has added William Gallas, Stipe Pletikosa, Sandro and Rafael van der Vaart to its squad for a total 19.9 million pounds ($32.1 million).
That expense will feature in next year's results, although Tottenham should compensate for that in income since it is in a strong position to advance to the next round of the Champions League following a victory over defending champion Inter Milan.
''European and cup competitions remain an important part of our progression, particularly as we head off on a Champions League adventure which will test players and staff alike,'' Tottenham finance director Matthew Collett said. ''Our successful approach to nurturing both homegrown talent and acquisitions through the transfer market will help the team to secure future success on the pitch.''
With 33,000 fans on a waiting list for season tickets, Tottenham is trying to replace White Hart Lane with a bigger stadium. It has planning permission to build a new ground adjacent to its current home but the projected cost has risen 50 million pounds ($80.7 million) because it is required to preserve four historic buildings on the site.
The club has also submitted a bid to move into the Olympic Stadium in east London after the 2012 Games.
