Club Finances - Swiss Ramble

Lighty64

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We didn’t refund 50%. We averaged 53k at Wembley so 9 or 10k below capacity at WHL. So we lost something like 500k a game at Wembley over 14 home games so we probably lost £7m or so. But we then also had 4 CL games at 80k which is 20k over the the new stadium. 17/18 gate receipts were 85k I’d imagine this season were 95-100k. Also in the £450m there’s natural growth in commercial deals which has gone up every season.
What was the average crowd 17/18 at less rent, with no refunds and no spiralling cost when they wasn’t paying for delays, and our wage bill was quite a bit less
 

coys200

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What was the average crowd 17/18 at less rent, with no refunds and no spiralling cost when they wasn’t paying for delays, and our wage bill was quite a bit less
The whole discussion is about revenue not costs. How do you know the rent in 18/19 was more than 17/18 ?
 

absolute bobbins

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The club and BOA are exploring a private placement of bonds worth around £350-400 million (of £630ish million of stadium loans) with between a 15 and 30 year yield.

Edit: Turns out this isn’t new news, as you were chaps
 

Spurrific

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The club and BOA are exploring a private placement of bonds worth around £350-400 million (of £630ish million of stadium loans) with between a 15 and 30 year yield.

Edit: Turns out this isn’t new news, as you were chaps
Still interesting for those of us who haven't read every post, tbf. No idea why you'd get a "D'oh" for it.
 

absolute bobbins

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Still interesting for those of us who haven't read every post, tbf. No idea why you'd get a "D'oh" for it.
As it happens I was wrong. (Shock horror). This is newish, but not swiss ramble (well a week or so old), with the Athletic and Football London among others are now reporting on it using the figures on the higher end of what I was told. The Bonds are being offered to a very select list of American insurance firms and the plans for the capital raised from the issue will be used to pay down the original stadium loans.

In a nutshell it all basically means the club will have a lot more freedom with how we use the revenue we generate (matchday, broadcast, naming rights, additional events, real estate dev, etc), unlike Arsenal who half shit the bed/half were victims of circumstance with the way they financed their stadium.
 

Lilbaz

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As it happens I was wrong. (Shock horror). This is newish, but not swiss ramble (well a week or so old), with the Athletic and Football London among others are now reporting on it using the figures on the higher end of what I was told. The Bonds are being offered to a very select list of American insurance firms and the plans for the capital raised from the issue will be used to pay down the original stadium loans.

In a nutshell it all basically means the club will have a lot more freedom with how we use the revenue we generate (matchday, broadcast, naming rights, additional events, real estate dev, etc), unlike Arsenal who half shit the bed/half were victims of circumstance with the way they financed their stadium.
Arsenals deal was fine. They could have paid it off by now if they wanted but the interest was low enough that they haven't bothered. They are due to pay it off by 2031.
 

jeremystorey

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Still interesting for those of us who haven't read every post, tbf. No idea why you'd get a "D'oh" for it.
Because you have those in life who either want to be helpful and respectful or those that want to be derogatory and feckless. I'm guessing the person who 'Doh'd' you is either in the latter of those categories, or thought it was harmlessly funny or has ham-sized thumbs and gave you the wrong rating - (as you can tell, I'm firmly in the former category, and will at least attempt to give the benefit of the doubt). :)
Now that's outta the way - thank you for sharing, as I didn't know that either. Or at least, a clear definition of what it means in terms of day-to-day financial impact for the club. What I read into it, is that unlike Arsenal the debt owed on the new Stadium won't be a fiscal set of handcuffs that prevents us from competing at the high-end of the transfer market. Albeit, judiciously.
 

JeremyPaxton

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The club have picked a very good time to term-out their bank loan. Fixed interest rates for long-term Sterling borrowing are as low as they've been, pretty much since records began in the 1600s. Now the club will have to pay a risk premium above this rate, but the overall fixed interest rate they will get should be really attractive for the club (somewhere between 2.50%-3.50% I'd guess - I haven't seen the offering), and be locked in for a generation. £400m sounds like a scary amount to borrow, but if the club has certainty on only having to pay £10-15m a year on interest costs for the next 20-30 years, regardless of what's happening to financial markets or interest rates, that's a pretty great place to be.
 

Amo

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Anyone have a rough idea of how much Spurs will be paying in interest by the end of the repayment term?
 

davidmatzdorf

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Anyone have a rough idea of how much Spurs will be paying in interest by the end of the repayment term?
Given the range of possible interest rates and the vagueness about the principal, I think it would be impossible to make an accurate guess.

Also, I expect they'll refinance again, or possibly just make a bulk repayment to reduce the principal, after the residential/hotel development has been completed.
 

Westmorlandspur

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Given the range of possible interest rates and the vagueness about the principal, I think it would be impossible to make an accurate guess.

Also, I expect they'll refinance again, or possibly just make a bulk repayment to reduce the principal, after the residential/hotel development has been completed.
It was suggested in the press that they are wanting a large advance of money for the naming rights, then paying off some debt with it.
It seems a hell of a lot of money we are owing but when you look at Arsenal and Liverpool they are both running with 200m debts. Our turnover this season will be level or above both of them so it seems we are in a pretty good position. Liverpool have just spent a bucket of money on players and couldn’t follow it up this season. Most of that was financed by the ridiculous amount for Coutinho. They got lucky but invested it very wisely on top players.
If we keep progressing as a team we will sell out the ground no problem as has been shown by the early games for this season
 

Lighty64

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Still interesting for those of us who haven't read every post, tbf. No idea why you'd get a "D'oh" for it.
the person who rated it might have the excuse I know many have used before "fat fingers on a mobile".:whistle:
 

dovahkiin

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hertyid on the debt refinancing: It’s going to be a great deal for the club. Transferring from a 5 year loan to 15-30y bonds, coupons offset by stadium income so all debt now easily serviceable, at cheapest long term rates in history. Transforms our financial position and means we can basically ignore our debt and act in transfer market and wage negotiations like a debt free club. Just shows how big a club we are now that investors are willing to buy 600m of long-term bonds, total faith in the club. Great news all round.
 

Lighty64

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hertyid on the debt refinancing: It’s going to be a great deal for the club. Transferring from a 5 year loan to 15-30y bonds, coupons offset by stadium income so all debt now easily serviceable, at cheapest long term rates in history. Transforms our financial position and means we can basically ignore our debt and act in transfer market and wage negotiations like a debt free club. Just shows how big a club we are now that investors are willing to buy 600m of long-term bonds, total faith in the club. Great news all round.
still whoring even though our window is shut(y)
 

Westmorlandspur

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hertyid on the debt refinancing: It’s going to be a great deal for the club. Transferring from a 5 year loan to 15-30y bonds, coupons offset by stadium income so all debt now easily serviceable, at cheapest long term rates in history. Transforms our financial position and means we can basically ignore our debt and act in transfer market and wage negotiations like a debt free club. Just shows how big a club we are now that investors are willing to buy 600m of long-term bonds, total faith in the club. Great news all round.
Is it 400 or 600. Press reports said 400m by Bank of America.
 

Sweech

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Arsenals deal was fine. They could have paid it off by now if they wanted but the interest was low enough that they haven't bothered. They are due to pay it off by 2031.
In the longterm now yes.

At the time they were massively struggling to actually get the cash to even finish the project.
 

yankspurs

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hertyid on the debt refinancing: It’s going to be a great deal for the club. Transferring from a 5 year loan to 15-30y bonds, coupons offset by stadium income so all debt now easily serviceable, at cheapest long term rates in history. Transforms our financial position and means we can basically ignore our debt and act in transfer market and wage negotiations like a debt free club. Just shows how big a club we are now that investors are willing to buy 600m of long-term bonds, total faith in the club. Great news all round.
I understand what he’s saying but ignoring debt is the wrong terminology. We still have debt payments to make every year. It’s just that they will be smaller as its repayable in 30 years now instead of 5
 
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