Results for Finances

Spurs Stadium Pays For Itself

8:00 pm

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


Spurs Stadium Pays For Itself Spurs Stadium Pays For Itself Reviewed by THBlogNews on 8:00 pm Rating: 5

Spurs Now 9th Richest Club In Europe

8:30 am

Spurs Now 9th Richest Club In Europe

Spurs-Madrid


Tottenham have moved up from 12th to 9th in the table of the most valuable football clubs in Europe. Spurs are now valued at £1.48 billion (€1.697bn) by KPMG.

KPMG is a network of professional service firms and one of the Big Four auditors. They are based in Amstelveen in the Netherlands and employ 207,050 people.


They first produced this list in 2016 and it is now an annual document where, this year, Celtic have moved into the Top 30 for the first time as the biggest Scottish club.


  1. Real Madrid
  2. Manchester United
  3. Bayern Munich
  4. Barcelona
  5. Manchester City
  6. Chelsea
  7. Liverpool
  8. Arsenal
  9. Tottenham Hotspur
  10. Juventus
  11. PSG
  12. Borussia Dortmund
  13. Atletico Madrid
  14. Schalke 04
  15. Inter Milan
  16. Leicester City
  17. West Ham United
  18. Napoli
  19. AC Milan
  20. Everton
  21. AS Roma
  22. Lyon
  23. Besiktas
  24. Sevilla
  25. Athletic Bilbao
  26. Benfica
  27. Ajax
  28. Lazio
  29. Monaco
  30. Celtic
  31. Villarreal
  32. Galatasaray


If you look at our 3-year growth it is over 5 times that of Arsenal and surpasses all of the Top 10.

Tottenham's pre-tax profit of €157m was a key factor in our jump, which surely will only increase next year thanks to the opening of the new stadium and reaching the UEFA Champions League final with the additional broadcasting revenue that brings.

You can read the full report here.

COYS


Spurs Now 9th Richest Club In Europe Spurs Now 9th Richest Club In Europe Reviewed by THBlogNews on 8:30 am Rating: 5

Tottenham Are Not at a Crossroads

8:00 pm

Spurs Trying For Newcastle Striker Pérez Again

Ayoze-Perez


Tottenham are said to be 'one step away' from the signing of 25-year-old (26 in July) Newcastle United striker Ayoze Pérez reports

Vincenzo Credenendino writes an exclusive for Calcio Napoli that neither Italian sides Napoli or Inter Milan will be able to sign Aoze Pérez as he is likely to be joining Tottenham in a deal he reports would be worth around £24.71 million (€28m).

Credenendino suggests Arsenal tried to sign the Spanish striker, as did Valencia and Atlético Madrid. He also suggests there is a release clause in his Newcastle United contract of £26.49 million (€30m) and that he would rather join an Italian club where he believes he would score 20 goals a season and take the leap to the next level.

The Italian press speculates every summer that Erik Lamela is leaving and it is always for Italy and he never does. They are suggestion this time is that he hasn't played much, well, he has yet again been injured for long periods again.
Simply because he hasn't played doesn't mean he is leaving and we need an additional player who can attack from wide that can replace Georges-Kevin N'Koudou rather than Lamela.

N'Koudou has been on loan at AS Monaco this season but has a contract at Tottenham until 2021. He would be the first wide man one we would want to offload.

Pérez can play as a striker, secondary striker and wide left attacker so have the versatility that POchettino likes that enables players to cover various positions but more importantly can play in different systems. Poch wants players who can change system during a game with the same players, therefore reacting to what the opposition is doing or does.

The journalist confirms that we tried to sign him 3 years ago, which demonstrates we continue to watch players we are interested in and when circumstances align make further moves. Being a UEFA Champions League finalist will certainly make us an attractive opposition for some players looking to progress their careers.

The fact that we have shown there are plenty of games for everyone to play and that we change system is a bonus and helps a player see they won't be stuck on a bench.

We again have the four major trophies to play next season and if we win the Champions League we will also have the UEFA Super Cup and the Club World Cup to play. This again is great for worldwide brand exposure which in turn could help our marketing guys to bring in more commercial sponsorship revenue.

Increased income allows increased expenditure in the squad.

Tottenham Are Not at a Crossroads Tottenham Are Not at a Crossroads Reviewed by THBlogNews on 8:00 pm Rating: 5

VIDEO: Why Spurs Have A Healthy Transfer Budget

8:30 am

Why Tottenham Have A Healthy transfer Budget This Summer

Below is an excellent explainer video from Tifo Football that discusses the Tottenham finances for 2017/18 and what it means for the club.

It explains how the stadium is accounted to be paid for, £25m-a-year for 50 years and that the club is in a far healthier position than when other clubs built their stadium.

Daniel Levy has masterminded the rise of Tottenham from a broken mid-table club to one now in the UEFA Champions League Final with one of the best stadiums in the world, that earns huge amounts from matchdays hospitality, catering and merchandising and a world-class training facility.

These are exciting times for Spurs supporters.




COYS




VIDEO: Why Spurs Have A Healthy Transfer Budget VIDEO: Why Spurs Have A Healthy Transfer Budget Reviewed by THBlogNews on 8:30 am Rating: 5

The Top 20

6:30 pm
There are six Premier League clubs in the top ten list of the world's most valuable clubs according to a list from Forbes.

The Top 20


That means Tottenham, being the sixth richest in the Premier League, Spurs are now the tenth most valuable club in the world.

Before fans get carried away and assume we can buy anyone simply by offering more money, let me remind you that players have a choice where they play football and many choose to go to one team leagues where qualifying for the Champions League is easier.

The Top 20 Richest Clubs

  1. Real Madrid
  2. Barcelona
  3. Manchester United
  4. Bayern Munich
  5. Arsenal
  6. Manchester City
  7. Chelsea
  8. Liverpool
  9. Juventus
  10. Tottenham Hotspur
  11. Borussia Dortmund
  12. AC Milan
  13. PSG
  14. Schalke 04
  15. Atletico Madrid
  16. Inter Milan
  17. West Ham United
  18. AS Roma
  19. Napoli
  20. Newcastle United
That is a testament to the work of Daniel Levy and demonstrates why the anti-Levy cluster are out of touch with modern day football. Sir Alex Ferguson maintained to have a successful club you have to have a successful business to underpin it.

With a new stadium on the horizon, an NFL tie-up and the probable future base for a London NFL franchise, plus the increase in sponsorship revenue soon to arrive, Champions League football, a squad who are in a position to compete for trophies regularly and a manager here for the long-term, everything is looking rosy for Tottenham fans.

We are on the cusp of moving to the next level, it will still take a few years yet, but the long-term planning is now starting to come to fruition. The beauty is that it is a sustainable model, it is not based on one individual pumping money in who could withdraw his interest at any time.



The Top 20 The Top 20 Reviewed by THBlogNews on 6:30 pm Rating: 5

Finances say Spurs should finish 6th

8:30 pm
The Guardian have published their usual piece on club finances. The Tottenham Hotspur break down is below.

The wage bill reflects where you are likely to finish in the Premier League. Spurs have the sixth highest wage bill so finishing fifth is an over achievement.

Accounts for the year to 30 June 2013

Ownership: Enic International Limited, registered in the Bahamas (tax haven), owns 85% of Spurs. Joe Lewis, resident in the Bahamas, has the controlling, 70.6% ownership of Enic, with chairman Daniel Levy and family owning the other 29.4%

Turnover: 6th in league, £147m (up from £144m in 2012)
1st Man U £363m, 2nd Arsenal £283m, 3rd Man City £271m, 4th Chelsea £260m, 5th Liverpool £206m

Match receipts: £33m (6th)
1st Man U £109m, 2nd Arsenal £93m, 3rd Chelsea £71m, 4th Liverpool £45m, 5th Man City £40m

TV and media: £57m (6th)
1st Chelsea £105m, 2nd Man U £102m, 3rdMan City £88m, 4th Arsenal £86m, 5th Liverpool £64m, 7th Everton £56m

All commercial activities: £57m (5th)
1st Man U £153m, 2nd Man City £143m, 3rd Liverpool £98m, 4th Chelsea £84m, 6th Arsenal £44m

Wage bill: 6th highest, £96m (up from £90m in 2012)
1st Man City £233m, 2nd Man U £181m, 3rd Chelsea 3rd £179m, 4th Arsenal £154m, 5th Liverpool £132m

Wages as proportion of turnover: 65% (5th lowest)
1st Man U 50%, 2nd Arsenal 54%, 3rd West Ham 62%, 4th Liverpool 64% (Chelsea 9th 69%, Man City 17th 86%)

Profit before tax: £4m (up from £7m loss in 2012)
Net debt: £55m (10th)
1st Chelsea £958m, 2nd Man U £295m, 6th Liverpool £114m, 7th Arsenal £93m, 11th Man City £54m)

Interest payable: £8m
Highest paid director: £1.658m paid to Daniel Levy

Spurs finished fourth in 2012 under Harry Redknapp, fifth last season under Andre Villas-Boas, and currently sit comfortably sixth this season under Sherwood.

That is roughly where our finances say we belong ( 6th highest income, 6th highest wage bill).

These finances only serve to highlight my point in the the Spurs Need To Go Mental series. If we simply do what everyone else is doing we haven't a chance, we have to take the lead and fine tune recruitment through world class mental analysis of a potential player.

We have to improve our players greater than other clubs improve their players which if just left to the players is never going to happen. Tottenham have to take the mental side of the game more seriously if we are to achieve our goals.



Finances say Spurs should finish 6th Finances say Spurs should finish 6th Reviewed by THBlogNews on 8:30 pm Rating: 5
Powered by Blogger.