No money is sat off to pay back the stadium.... In the last set of accounts the debt has increased and the cash the club is holding has decreased. You will be able to see exactly what is being paid off/set aside year on year by looking at these two numbers in the accounts.
Of all clubs in the PL Covid worked out worst for us. Our stadium generates more as a proportion of income than any other club in the PL. Just in the 2021 numbers our match day revenue is down probably £120m on where it would be with an open stadium and commercial revenue down probably £10m to £20m. Our operational costs were down about £45m (no need to buy food and drink and pay for catering staff and security, etc when stadium is closed) so overall we were about £85m to £95m down on where we could've been.... and that is profit as opposed to revenue. Most owners in the PL can load more debt onto their clubs, or inject equity into the club.
IMO both of those two things are investments as opposed to loves. His art collection is just another thing he owns that is growing in value. A large majority of his art collection is sat in Geneva Freeport, appreciating in value with nobody being able to see it.
ok, so if they put in more money to downpay the stadium faster, which ofc is beneficial for Enic, they can still say money goes to the club, but just to pay down loan and then use less on transfers?
Cash balance was £226m at end of 2020 accounts. Now £148 million at end of 2021 period. This is still a very healthy cash balance (2nd highest in PL behind Man Utd and that is before any other club has declared 2021 accounts, which will cause all clubs to have a large net cash outflow). This gives us wiggle room and the ability to take another hit from something like another shorter term lock down and/or could be used for transfer funds (though I think the club will definitely keep back a reasonable portion of cash to hedge against the possibility of a lock down happening).
I think you're right. I mean, it's obviously a guess, we can't possibly know for sure, but to me it feels like anything and everything he dips his toes into is designed to make big profits. I guess he might well enjoy looking at his latest Klimt or Picasso but the real buzz is seeing his investment flourish so it's highly likely he sees Spurs the same way.
Cash balances and losses are very different things. For example if we sign a players for £100m on an average of 5 year contracts then for those players we would amortise them by £20m per year in our accounts (contributing to the costs column for the club). However the payment terms for the transfer fees for those very same players could be 50% in year 1, 30% in year 2 and 20% in year 3. The impact on the club's cash flow is very different to the impact in terms of profit/loss. Make sense?
Thanks for info. I think the whole situation will be a lot clearer after next year's figures. Assuming no more Lockdown, or large loans
If only things were that simple....
)
Like Levy, Lewis has been a Spurs supporter since childhood. Not being telepathic, I don't know his current emotional state, but he grew up as a Spurs supporter.
I don't see why ENIC would use cash on hand to reduce long term stadium debt. Interest rates on the stadium debt are low, because the facilities were secured during a time of low rates. The cash is needed to run the club and to engage in player trading (transfers). You don't want to reduce long-term low-interest debt - you want to reduce short-term expensive debt first.ok, so if they put in more money to downpay the stadium faster, which ofc is beneficial for Enic, they can still say money goes to the club, but just to pay down loan and then use less on transfers?
I recall reading that it was a draw-down facility, but I can't remember where. I wouild expect it to be a draw-down facility. Development finance, long and short-term, is usually done that way, to minimise interest charges, even in times of low interest rates. Lenders generally expect it.
Spursfan77 has provided the info above..... Looks like 175m (probably plus some costs) was used to pay off BoE, 50m (probably plus some costs) to pay off loan from Merrills and the remaining £21m added to our gross debt (and assumedly cash) position.
