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How Spurs Built A Stadium And Made A Profit

Giovanni

Well-Known Member
Aug 31, 2012
2,587
3,614
Just goes to show how much money we will or do have. Once these other events kick in and we get a naming rights ect our income will be insane for a club with our wagebill ect.
If you tally up the figures then it doesnt take a genius to know that we have a fortune incoming.

Tv money
Matchday income ( people are getting to whl very early and spending alot of money per person)
Prizemoney (4th place, 85m cl money)
Merchandise (club shop heaving)
Naming rights (audi this summer 25m Per season)
Shirt sponsor
Other events (rugby, nfl, concerts, e sports,)

Im not sure about what most of these fetch per annum but even after say a 50m repayment per season on the loan we should have a mountain leftover.
 

Everlasting Seconds

Well-Known Member
Jan 9, 2014
14,914
26,616
Interesting that they talk about accounting principles and how that's magical, but leave out the most blatant example. If you sold the entire squad for market value of players, you'd fetch probably 800M - 1000M pounds. Which is insane. In the latest accounts that the video is referring to, the value of the players as assets is 150M (out of which three players are said to account for half). So the actual market value of club's assets is much higher than the value used for accounting purposes, and of that it follows that the debt ratio is much lower.
 

Westmorlandspur

Well-Known Member
Feb 1, 2013
2,685
4,500
I think the way they do it is if you buy a player for 40m on a five year contract his value reduces every year by 8 m. ie after two years he is valued at 24m on the books. Even though he may have improved so much someone has bid 60m for him.
Confusing but that’s the way it works. Amortisation is what it’s called.
What do they value Harry Kane at ....Nothing according to that system. If we sold him for 200m it would show as all profit.
 

THFCjosh

Well-Known Member
Aug 22, 2013
632
2,229
I think the way they do it is if you buy a player for 40m on a five year contract his value reduces every year by 8 m. ie after two years he is valued at 24m on the books. Even though he may have improved so much someone has bid 60m for him.
Confusing but that’s the way it works. Amortisation is what it’s called.
What do they value Harry Kane at ....Nothing according to that system. If we sold him for 200m it would show as all profit.
Not entirely correct, it is depreciation as the player is an asset. However, I doubt they'll use the straight line method for players or even use depreciation on players in the first place.
 

daryl hannah

Berry Berry Calm
Sep 1, 2014
2,674
7,717
Just goes to show how much money we will or do have. Once these other events kick in and we get a naming rights ect our income will be insane for a club with our wagebill ect.
If you tally up the figures then it doesnt take a genius to know that we have a fortune incoming.

Tv money
Matchday income ( people are getting to whl very early and spending alot of money per person)
Prizemoney (4th place, 85m cl money)
Merchandise (club shop heaving)
Naming rights (audi this summer 25m Per season)
Shirt sponsor
Other events (rugby, nfl, concerts, e sports,)

Im not sure about what most of these fetch per annum but even after say a 50m repayment per season on the loan we should have a mountain leftover.
Projections for the lot were something like £400m a year.
£50m/yr repayments on stadium debt
£140m/yr wages

Potential to go much higher with NFL deal
 

daryl hannah

Berry Berry Calm
Sep 1, 2014
2,674
7,717
Not entirely correct, it is depreciation as the player is an asset. However, I doubt they'll use the straight line method for players or even use depreciation on players in the first place.
Amortisation takes into account wages so that once a player is sold at say £24m, his 3 years of wages that are left on his contract are also rolled up into the final figure 'off the books' so that you get an amortised figure of say £39m (assuming something like £15m in wages over remaining 3 years) which shows up on the books as an overall 'profit improvement'.

This, I believe is what really happens rather than the straight zero net spend calculations that it's easier to make.
 
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