Financials 17/18

[Dzejkob]

Tl;dr. Can we buy players or we are broke?

 

[TheVoiceofReason]

We are the worlds best run club from a business point of view. All things considered.

 

[Chris Finch]

Tl;dr. Can we buy players or we are broke?

The answer to both is No

 

[Gedi]

BBC is quoting £113 after tax.

I’ve always thought it amusing that some of our fans think there’s a conspiracy against us amongst the media, referees and governing bodies but blimey even I have to admit it’s not right if we had to pay £156,999,887 in tax!

 

[gregga]

No... it’s because it would be illegal. The clubs auditors have to sign off on the accounts and if they sign them off as unqualified that would raise heaps of questions and the media would be all over us like a rash.

Quite simply... you don’t issue false accounts.

Sorry think we're at crossed wires, that isn't my point.

THFC can, perfectly legally and ethically, re-invest (retain) it's own cash for the subsequent year, before tax.

Whether to re-invest in future operations (growth), assets, paying down debt, or even as a contingency.

Obviously no company will do that indefinitely, whether for commercial or tax purposes, as it also can't pay out dividends on cash sitting in the business.

Spurs could easily have taken any number of legal courses to play these numbers down, but chose not to.

Am assuming that is to look strong to investors, perhaps ahead of a Bond issue which I think was mentioned in the THST minutes - I'd be interested to know their thinking that's all.

Thanks - I was wondering the same thing. Why elect to pay corporation tax when we’ve got massive construction bill to pay off?

 

[SamR]

Thanks - I was wondering the same thing. Why elect to pay corporation tax when we’ve got massive construction bill to pay off?

With the market looking in to what we are building as a club, perhaps profitability strengthens our valuation (and ROI for investors) to potential acquirers?

 

[fortworthspur]

you guys do your reporting different from us in the states so I always have trouble with these reports but it looks like we are in good shape if we laid out 490 million in cash for the stadium project and only borrowed 280 million.

 

[spursfan77]

Levy's pay down to £3 million. I wonder how much will be made of that after last year

 

[JayB]

The players have to be unbelievably frustrated being paid sub-market wages and forced to cope with a threadbare squad totally lacking in investment when we've only gone and turned the most profit in the history of world football.

 

[skiba]

What’s also interesting is that as of June 2018 the stadium cost is £700m and the loan was at £410m of possible £630m. Suggesting we’ve already paid £300m off the stadium.

This is significant.

If you include Lillywhite House and the training ground etc we have spent just short of £910m on capital projects to June 2018 with loans of £460m. That's almost £450m we have invested ourselves which can now be used for the footballing side of the business.

So not only does the completion of the stadium bring in extra revenue, it also frees up a proportion of our budget which was being spent on improving the infrastructure.

 

[rossdapep]

We will need to (begrudgingly) spend more money in this aspect though.........

https://www.football365.com/news/liverpool-way-ahead-in-premier-league-agents-fees-table

 

[Lilbaz]

I'm quite surprised Levy wouldn't hide the profit in the business, either by retaining cash or paying down debt.

Surely clubs and agents will see that and raise their expectations?

Unless it is for the benefit of refinancing? (Or dividends..)

You would think there is a strategy here, but I can't quite figure it out.

This is up till last june. Since then we've finished the stadium which would have cost money.

 

[Lilbaz]

you guys do your reporting different from us in the states so I always have trouble with these reports but it looks like we are in good shape if we laid out 490 million in cash for the stadium project and only borrowed 280 million.

We have £637m debt according to levy. He said so at the meeting with the supporters trust.

 

[Wheeler Dealer]

Record was previously held by Liverpool (think it was about £107m).........so, we made more profit in one year than any other club in the world ever!

Can we put this in the trophy cabinet

 

[Lee82]

I would suggest that all this profit has already been spent on the stadium over the past year. I wouldn't assume for one second that it has been sat there for a whole year waiting to spend this summer.

 

[coys200]

We have £637m debt according to levy. He said so at the meeting with the supporters trust.

The facility is £637m but as of these reports we’ve only used £410m. Yes it’s likely the final figure will be around £600m. But that’s nowhere near the £1bn debt muted by many.

 

[Lilbaz]

The facility is £637m but as of these reports we’ve only used £410m. Yes it’s likely the final figure will be around £600m. But that’s nowhere near the £1bn debt muted by many.

The reports are up to june 2018, levy's meeting was last month. Unless the report mentions current debt then levy has the more up to date figures.

 

[fortworthspur]

The facility is £637m but as of these reports we’ve only used £410m. Yes it’s likely the final figure will be around £600m. But that’s nowhere near the £1bn debt muted by many.

and I assume the rest of the project will generate a lot of revenue. plus naming rights. if you can use that to service the debt that leaves the profit from football for the team.

 

[Lilbaz]

Quote from levy at the thst meeting.

• DL said that with a debt of £637m, subject to reasonable assumption on interest rates, the net spend on players would not be affected

 

[worcestersauce]

This is significant.

If you include Lillywhite House and the training ground etc we have spent just short of £910m on capital projects to June 2018 with loans of £460m. That's almost £450m we have invested ourselves which can now be used for the footballing side of the business.

So not only does the completion of the stadium bring in extra revenue, it also frees up a proportion of our budget which was being spent on improving the infrastructure.

So like we've been telling all those pundits who said we will be restricted by paying off the stadium for the next ten years, we have been restricted for the last ten years paying off the stadium but from now on we've got cash on the hip.