Profit before player trading exceeded ?9.7 million, but the signings of Bobby Zamora, Frederic Kanoute, Jermain Defoe, Michael Brown and Paul Robinson resulted in the overall loss.
The club's turnover was ?66.3 milliondown ?200,000 from the previous year, the club said in a statement to the London Stock Exchange.
A ?15-million share issue boosted the club's net assets by ?11 million to ?42.264 million and helped fund the club's transfer dealings.
Spurs chairman David Levy said the club spent ?37.5 million on transfer fees for new players since July 1, 2003.
Levy acknowledged the level of spending was "clearly unsustainable" but said the club had made significant improvements, with 17 players leaving and 21 new players arriving.
Gone are Gary Doherty, Helder Postiga, Milenko Acimovic, Darren Anderton, Stephen Carr, Gus Poyet, Christian Ziege and Lars Hirschfeld.
Those who have moved to White Hart Lane are Pedro Mendes, Sean Davis, Paul Robinson, Marton Fulop, Thimothee Atouba, Rodrigo Defendi, Erik Edman, Noureddine Naybet, Edson Silva Sousa, Michael Carrick, Noe Pamarot, Reto Ziegler, Calum Davenport, Leigh Mills and Spase Dilevski.
Redknapp charged
Tottenham midfielder Jamie Redknapp was charged Monday with "serious foul play" for a tackle on Everton's Tim Cahill.
Redknapp, who caught Cahill with a knee-high tackle, was shown a yellow card on the play. Redknapp has 14 days to appeal.
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