Spurs Stadium Pays For Itself


Spurs Stadium Pays For Itself


Spurs-Stadium


We have seen jealous Arsenal fans on Twitter complaining about Spurs signing Tanguy Ndombélé, arguably Europe's most complete young midfielder, while we have a stadium to pay for. Arsenal couldn't do it and they don't understand how Spurs can go out and break our record transfer fee with our first purchase of the summer.

Got news for these guys, there are more signings to come and Giovani Lo Celso isn't coming cheap either.

Tottenham have a £637 million (€711.86m $808.33m) stadium debt and it has been estimated by a leading firm of football accountants that it will cost the club £47.8 million (€53.42m - $60.66m) a year to pay in interest and loan payments.

The £637 million figure is our loan facility from Bank of America Merrill Lynch, Goldman Sachs and HSBC. This is payable by 2022 and it is thought the interest rate was 3.5% originally, Bank of England changes may have changed that.

Paying back £637 million at 3.5% interest will cost about £22.3 million (€24.92m - $28.3m).

Paying back £637 over 25 years will cost about £25.5 million (€28.5m- $32.36m) a year.

Add the two together and you have your £47.8 million figure.

Each year we pay a piece of the debt, the repayment and the interest on it become smaller as we reduce the amount we still owe and therefore the cost of the interest.

It has been reported that in food, drink, all the match day revenue that doesn't include ticket sales, Spurs generate around £800,000 (€894,012 - $1.02m) per game compared to less than £150,000 (€167,627 - $190,345) at Old Trafford on a good day.

In our final season at White Hart Lane our matchday income was £45.3 million (€50.62m - $57.48m).

At Wembley, this increased to £71 million (€79.34m - $90.10m) and it will increase again at the new stadium. We expect to make over £100 million (€111.75m - $126.9m) (similar to Arsenal) but with lower operating cost via being cashless, brewing our own beer and having our own bakery, we would make more profit from the same transaction figures.

That revenue increase from £45.3 million to over £100 million is £55.7 million (€62.25m - $70.68m) which more than covers the cost of paying for the stadium. The stadium is paying for itself.

We have yet to earn from NFL games, concerts and non-sporting events, additional revenue not generated at other stadiums in the country and when an American franchise is eventually brought to London it is pretty obvious where they will be housed, in a stadium built with them in mind and the most technically advanced stadium in Europe if not the world.

Manchester United converted some of their loan facility into bonds whereby the club had to pay back the investor in a bond a certain amount on a certain date together with periodic interest payments that are lower than the bank facility and in that way they raised £500 million (€558.76m - $634.48m).

That is a route Daniel Levy has said that Tottenham will be going down and that, assuming it is successful, will reduce the £47.8 million figure and improve our cashflow situation.


The plan was to open the new stadium and qualify for the Champions League to coincide, hopefully to then be able to maintain that status with the additional revenue the club would have.

We are thus well ahead of schedule and in a better financial position than we expected to be at this stage. That allows us to now invest in the team, but only invest in the calibre of player we want or youngsters we think have potential.

Pochettino is not interested in just signing someone for the sake of it, as we saw last summer. The winter window is always very quiet for most clubs as nobody wants to release a quality player then.

The club is in the best hands it could possibly be in, both on and off the field.

(This was originally written pre-the publishing of our accounts, so loan figures may be different, but the principle remains the same so I have left it as it was written).

The following article will explain how transfers are paid for and show you the recent article from Football London and others in the main media on our supposed transfer budget are not a true reflection.

Transfer Budgets And Transfer Payments

COYS