How Spurs built a stadium *and* made a profit

mawspurs

Staff
Staff
Joined
Jun 29, 2003
Messages
27,734
Thread starter #1
Spurs should not only be able to keep the bank manager happy, but their football manager should have a smile on his face too when he sees the playing budget.


Source: Tifo
 

onthetwo

Well-Known Member
Joined
May 19, 2006
Messages
3,903
#6
£25m per season in interest costs on the stadium loan according to the piece above (4% interest on £637m borrowed).
 

Smokinhotspur

Active Member
Joined
Jun 11, 2012
Messages
271
#7
Now this is top top stuff. Super clear with just the right level of detail.

Just hope the club does not put itself under undue to pressure to repay the entire loan facility by 2022 especially if it could harm the transfer and wage budget in the short term. I'll be all for increasing the repayment term by another 5 years and whilst we will have to pay interest over that term, it should also give us the financial flexibility to continue to develop and maintain our status as a regular CL club. This should give us the ideal platform to compete and win things whilst continuing to meeting our financial obligations with the banks.

This seems to be coming together very nicely. We just need Joe Lewis, Levy and Poch to align on a masterplan and it should be an amazing ride. COYS!!!
 

JimmyG2

SC Supporter
Joined
Dec 7, 2006
Messages
8,346
#8
Accountancy for Dummies.
Love it.

Am I right in thinking that this means
we should build another stadium
and use it only for prime games
and/or for rent
and make even more money
to be spent only on players.

Can't see a flaw in this.
 

newbie

Well-Known Member
Joined
Jul 16, 2004
Messages
4,295
#9
so we should make from the stadium 110 million a year? white hart lane was 40-45 million but we have to re pay 25 million a year in loans?

is that right?
old WHL 45 million with 36-38 k capacity 40- 45 million
New white hart lane 62 k plus almost 1 million in food and drink per game, and high ticket price and higer revenue from coporate? not to mention we could easily have another 20 events running which would bring in surly 1 million food and drink plus commission on tickets. £110 million we should take about the same as old trafford with 12 k less people.

either way we will have money to spend in theroy this transfer window.
 

onthetwo

Well-Known Member
Joined
May 19, 2006
Messages
3,903
#10
if my maths is right we raise £50m from season tickets alone in August every year i.e 2x the interest on the debt so thats pretty much a lenders dream.
 

onthetwo

Well-Known Member
Joined
May 19, 2006
Messages
3,903
#12
its very smart accounting.....cheap debt, associated stadium costs pro-rated along with depreciation over useful life of the stadium (50 years) so the profitability of the club has moved to another level due to CL run and extra stadium capacity. Cash flow is probably the only question as theyve already coughed up for the build so the only question for me re transfer activity is the extent to which selling clubs are willing to except staggered payments ( a la the Sissoko deal) due to our (relative) lack of cash.
 

Smokinhotspur

Active Member
Joined
Jun 11, 2012
Messages
271
#14
its very smart accounting.....cheap debt, associated stadium costs pro-rated along with depreciation over useful life of the stadium (50 years) so the profitability of the club has moved to another level due to CL run and extra stadium capacity. Cash flow is probably the only question as theyve already coughed up for the build so the only question for me re transfer activity is the extent to which selling clubs are willing to except staggered payments ( a la the Sissoko deal) due to our (relative) lack of cash.
I wouldn't worry as the vast majority of big deals in Europe are structured as staggered payments. Otherwise it would make a mockery of FFP.
 
Top