Financials 17/18

[carmeldevil]

Kraft Heinz are struggling across the globe... The people have moved on from all the mass produced shite they turnout.. even the Americans. Not sure how much of his wealth is still tied up in the business, but it maybe a good time for him to cash in and focus on something new. He's no doubt wealthy, but still someway behind Abramovich and Usmanov

Robert Kraft has nothing to do with Kraft Heinz. Robert Kraft made his money in packaging and paper and then moved on to bunch of various projects kinda like Joe Lewis nowadays.

 

[Lilbaz]

I don’t think Spurs announced anything about Cain Hoy, or even acknowledged it. However, you are correct that Spurs would have to tell all its shareholders. What I meant was that it wouldn’t be a public announcement. So the fact that you and I haven’t heard anything doesn’t mean it isn’t happening.

They would have had to make it official within a certain time limit.

https://www.bbc.co.uk/news/business-29175883

Cain Hoy now has until 10 October to confirm its interest or withdraw it, in accordance with the City Code on Takeovers and Mergers.

 

[al_pacino]

Did that takeover news come out around exactly 7 days ago?

 

[Lilbaz]

I don’t think Spurs announced anything about Cain Hoy, or even acknowledged it. However, you are correct that Spurs would have to tell all its shareholders. What I meant was that it wouldn’t be a public announcement. So the fact that you and I haven’t heard anything doesn’t mean it isn’t happening.

Spurs did inform shareholders as per that article.

On Friday, Tottenham issued a statement saying: "Tottenham Hotspur FC has been in discussions with multiple providers of finance so that the optimum financing package for the project can be achieved and, in the course of those considerations, has met representatives of Cain Hoy."

 

[Gareth88]

Be wary @Gareth88 now you've mentioned it, it will probably he all over twitter and even the media by the end of the week.

I once had a bit of itk on joe cole coming to us (from his uncle) it was reported on espn website 2 days later. Lol.

I’ll be getting phone calls from Sky Sports clarifying my stance on whether this is happening or not

Kraft to part with at least 35% of his net worth for Spurs?

If you’re buying that, let me tell you about these fantastic bags of magic beans I’m selling for only £25 each

Im willing to pay £50 per bean

 

[topper]

Robert Kraft has nothing to do with Kraft Heinz. Robert Kraft made his money in packaging and paper and then moved on to bunch of various projects kinda like Joe Lewis nowadays.

If he does take over - the question to ask is: will Kraft work for Spurs?

 

[carmeldevil]

If he does take over - the question to ask is: will Kraft work for Spurs?

Only if Tom Brady can kick the ball and Bill Belichick understands that he can't use the word 'soccer' in the UK.

 

[fortworthspur]

cain hoy was the the guy from the Kung Fu TV show, right? David Carradine.

 

[topper]

If he does take over - the question to ask is: will Kraft work for Spurs?

Only if Tom Brady can kick the ball and Bill Belichick understands that he can't use the word 'soccer' in the UK.

But what's The Model and if we play in Europe will he fly to games, get the Autobahn or take the Trans-European Express?

 

[Metalhead]

Kraft to part with at least 35% of his net worth for Spurs?

If you’re buying that, let me tell you about these fantastic bags of magic beans I’m selling for only £25 each

I'm interested - can you DM a price please?

 

[Lee82]

Unless we get bought by a super rich Asian or an oil magnet then I don't see a change of ownership changes anything for us. We will just be changing one rich owner for another. The club will still spend only what it earns.

 

[CoopsieDeadpool]

Heard a rumour that we are been bought by Robert Kraft in the summer 1.5billion? Any one else heard this?

Nope. Where's this from?

Anything serious shareholders will have to be notified ala cain hoy.

He has 1 true love. It’s the Patriots. He has a team in MLS and he doesnt give a shit about it.

Mr Kane met him not too long ago .


But he's been a busy boy recently.


Robert Kraft arrested: New England Patriots owner accused of soliciting prostitute

https://www.google.com/amp/s/www.ex...-england-patriots-robert-kraft-prostitute/amp

 

[yankspurs]

Mr Kane met him not too long ago .


But he's been a busy boy recently.


Robert Kraft arrested: New England Patriots owner accused of soliciting prostitute

https://www.google.com/amp/s/www.ex...-england-patriots-robert-kraft-prostitute/amp

Yes. The man is fond of rub & tug joints.

 

[BehindEnemyLines]

I wonder whether JL might look at taking a further step back and pay off the remaining stadium debt through some equity finance structure. Especially if he could manage a placing with a suitable partner company in the USA.

It's all just media quoting my post from last week!

 

[ComfortablyNumb]

They would have had to make it official within a certain time limit.

https://www.bbc.co.uk/news/business-29175883

Cain Hoy now has until 10 October to confirm its interest or withdraw it, in accordance with the City Code on Takeovers and Mergers.

I don’t think the BBC got that right, unless Cain Hoy are listed, and I don’t think they are. City rules don’t apply to private companies. We could get sold to an Arab sheik and the first we hear about it could be after the ink is dry. That doesn’t stop the parties from discussing it openly, but they don’t have to.

 

[hellava_tough]

Incidentally, how is the value of a company - or in our case, a football club - worked out?

Is there an industry standard, or academic standard, formula used?

For instance, total assets plus current and future realistic earning/revenue, minus total liabilities.

It would be interesting to know, because it would give us a clearer indication of the type of owner who would be able to afford to buy the club.

 

[Lilbaz]

Incidentally, how is the value of a company - or in our case, a football club - worked out?

Is there an industry standard, or academic standard, formula used?

For instance, total assets plus current and future realistic earning/revenue, minus total liabilities.

It would be interesting to know, because it would give us a clearer indication of the type of owner who would be able to afford to buy the club.

Same as everything, how much the buyer is willing to pay = how much the seller is willing to sell for. What that number is can depend on a number of things.

Yes i know that isn't a helpful answer.

 

[coys200]

Incidentally, how is the value of a company - or in our case, a football club - worked out?

Is there an industry standard, or academic standard, formula used?

For instance, total assets plus current and future realistic earning/revenue, minus total liabilities.

It would be interesting to know, because it would give us a clearer indication of the type of owner who would be able to afford to buy the club.

Yeah there is an actual formula which Charles COYS used on twitter to come up with the £2.3bn figure.

 

[thebenjamin]

Sure. A bond is just a fancy capital markets term for a loan, just one where there isn't a single lender but lots of lenders who can transfer the loan whenever there is a willing buyer.

In a mortgage there is a defined repayment schedule which is computed based on the term of the mortgage and the interest rate. Say for example you borrow £100,000 for 25 years at 5% per annum there will be a single level monthly amount that ensures the outstanding amount of the loan in 25 years is precisely zero. At the beginning of the loan most of that monthly repayment is interest and at the end most is capital.

A bond operates differently, it is basically a loan with only interest payments and then one payment of capital at the end. So again let's say you borrowed £100,000 for 25 years at 5% per annum you would make interest payments every year of £5,000 and then at the end of 25 years make one single capital repayment of £100,000.

If the club refinances the current loan via a series of bonds then it is effectively controlling the repayment profile for the big capital payments. So for example it could issue an equal notional of bonds maturing every year from year 6 to 25 and in that way would pay off 1/20th of the capital each year over 20 years. This is in practice highly unlikely as the bond markets operate with fairly prescribed maturities such as 3, 5, 7 ,10, 12, 15, 20 and 25 years so in practice they are likely to issue a varying amount of each of these maturities. The precise balance between these will be a factor of a number of things decided by the CFO such as the trade off between maturity and interest rate, generally speaking the longer you want to borrow for the more it costs.

Hope I haven't confused you further

Got it, thanks! Very clear and now I'm opening my own hedge fund.

 

[skiba]

So my best attempt at summarising previous discussion....

We are likely, per @Led's Zeppelin , to pay back significant amounts of the loan between now and 2022. Once we have shown that the stadium brings in serious cash we are likely to want to refinance on a better long-term deal. This is consistent with @skiba who has referenced Levy as saying we will use « debt instruments with a mixture of maturities to repay the debt facility. »

The most informed people in this thread seem to believe that we will have some extra funds to spend eg on the playing squad, right away. In @Led's Zeppelin view this is despite the fact we will pay back relatively large sums in the coming years.

Tell me if if I’ve got this wrong ...

We can only speculate right now as to how the stadium debt will eventually be repaid. For what it's worth I do think the method of a bond issue put forward and explained very well by @am_yisrael_chai in this thread already is what we will most likely see.

I think the important thing to take away from the 2018 financials is just how much of a burden the new stadium and training ground have been on the club's finances.

The challenge the club would have faced during the construction of these projects is the management of the 'funding gap' and knowing precisely how much the club will have to fund from their own cash flows over and above the available loan facility of £637m. The difficulty here is that the club would only know the exact amount of this gap once the projects are completed and the final cost is known. So if something unforeseen were to arise that increases the overall cost (like a failure of the critical safety systems), we would either need to borrow more money (not advisable) or use our operating cash flows (cash generated from TV, Champions league, gate receipts etc) to plug the gap.

This is why completion of the training ground and stadium is so significant for us financially. We no longer have to prioritise directing our cash flows towards the funding gap (a cost to the club I believe to be in the region of £380m over the 4 years to June 2018) and are now free to choose how these funds are spent, whether it be in repaying the stadium debt or increasing the player budget. Add to this all the extra income the stadium will generate (gate receipts, naming rights, NFL etc) and you start to see how well positioned the club is financially to kick on should it wish to do so.