What's new

Spurs mimic Man Utd tactic in a bid to boost transfer activity amid £600m debt

mawspurs

Staff
Jun 29, 2003
35,066
17,740
Tottenham have reportedly relieved £400million of debt created from building their new stadium which could in turn help them in the transfer window over the next three years.

Source: Daily Express
 

adamsky

Well-Known Member
Dec 8, 2006
1,683
4,455
Not much of a story, we were never gonna pay back £500m in next few years, was always going to be refinanced
 

Amo

Well-Known Member
Aug 22, 2013
15,795
31,480
"Mimic".

Not going to bother to read that unless someone tells me it contains any information.

The club has refinanced the £637m debt from Sachs, HSBC and and Bank of America. This debt was a regular bank facility due to be paid back in 2022.

Now BoA has launched a payment initiative for £400m of that debt with bonds that have maturities ranging from 15 to 30 years (maturities staggered depending on how long, exactly).

I mean this would have always happened as we would never pay back the 640m in three years. I guess the club has used the time to shop around.
 

guiltyparty

Well-Known Member
Sep 21, 2005
9,023
13,524
"Mimic".

Not going to bother to read that unless someone tells me it contains any information.

It’s an Athletic exclusive by Jack Pitt-Brooke, so everyone’s ripping it off them as they’re behind a paywall

“Bank of America has launched a new private placement scheme to turn roughly £400 million of that debt into bonds with staggered maturities ranging between 15 and 30 years. They reached out to institutional investors in the US with a conference call last week.

While this deal will not immediately decrease the level of Tottenham’s net debt, which is approaching £600 million, it will relieve the immediate pressure for Tottenham to pay the money back in less than three years’ time. The move also takes advantage of low interest rates in the US and puts the club’s finances on a stable long-term footing”

Spurs and Bank of America declined to comment.
 
Last edited:

Buggsy61

Washed Up Member
Aug 31, 2012
5,549
8,921
This is such old news.
One thing the club never seems to get credit for in the media is that almost half the stadium has been paid for already as it is a long term project that pretty much started as soon as Enic moved in. I suspect c£80m of the £637m debt will be paid down during this financial year
 

Donki

Has a "Massive Member" Member
May 14, 2007
14,451
18,966
I would say the difference between United and our debt is we are actually trying to pay off the capital while the Glaziers seem happy simply to service the debt and bleed United dry.
 

guiltyparty

Well-Known Member
Sep 21, 2005
9,023
13,524
This is such old news.
One thing the club never seems to get credit for in the media is that almost half the stadium has been paid for already as it is a long term project that pretty much started as soon as Enic moved in. I suspect c£80m of the £637m debt will be
paid down during this financial year

To be fair to the Athletic, they say so in the article:

“Working with our Banking Partners and our financial advisor, Rothschild & Co, we shall be converting this development facility, which currently expires in April 2022, into notes with a mixture of debt maturities,” Spurs said last year. “The residual amount of gross debt to be converted or extinguished will depend on a number of factors including several commercial discussions.”

The news is that the first arrangement has been made.
 

minesadouble

Drove my Chevy to the Levy
Jul 27, 2006
749
2,933
Pathetic Express article (can't speak for the original Athletic one). 'Mimic' Man Utd, LOL. The refinancing of commercial short term debt into long term institutional private placements is as old as the hills, done thousands of times over the past few decades in other industries than football. I have no idea if the journo knows that and is just trying to stir. I suspect probably doesn't have a clue.

The detail of the placements would be interesting. Whether they allow early redemption (repayment) or not, the interest rates and any covenants, that kind of thing. You have to think we plan to pay at least part of them off with a naming rights deal, future football & stadium revenues and non-stadium capital projects such as apartments, houses and hotels, etc.

It's also interesting we've placed them with US institutions (rather than UK, European or Asian). To some extent this is probably price and demand driven. But it also reflects our growing profile in USA and the fact we have a 'good story' to tell investors.

But frankly this is a non-story as it was always going to happen and the club said it would.
 

shelfmonkey

Weird is different, different is interesting.
Mar 21, 2007
6,690
8,040
Apparently the central banking system is in a bit of bother with The Federal Reserve likely to be done away with in the not too distant future, so I'm wondering how this might affect this move by Levy!
 

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
Apparently the central banking system is in a bit of bother with The Federal Reserve likely to be done away with in the not too distant future, so I'm wondering how this might affect this move by Levy!

Not doubting shelf but first i've heard of this (us finance not my strongest point) have you got a source?
 

shelfmonkey

Weird is different, different is interesting.
Mar 21, 2007
6,690
8,040
Not doubting shelf but first i've heard of this (us finance not my strongest point) have you got a source?

Believe me I'm no expert either, but there's a youtuber called The X22 Report, seems pretty well versed, says Trump is going back to the gold standard, taking back control of the US's money from The Fed, pinch of salt as always though.?

Also all the major banks are apparently in something called minus or negative liquidity, whatever that means, doesn't sound good though! I'm sure there's a banking know it all on here somewhere who will explain such things:D
 
Last edited:
Top