ENIC...

[spids]

My mistake. I should have stated "interest on the funding for their new shares". There have been suggestions that ENIC borrowed in order to fund the purchase of new shares since ENIC appears to now be a one investment business: investment in Tottenham Hotspur Plc. ENIC has never received dividends from Tottenham Hotspur Ltd (or Tottenham Hotspur PLC), so other things being equal they will have no funds of their own to fund the £150 million share purchase, so they need to borrow from somewhere. They may have borrowed from Joe Lewis and Daniel Levy as individuals, but it appears that the two individuals concerned have not "put their hands in their pockets". Therefore it seems that interest would accrue on the borrowing from some third party or another.

Ah ok. Wouldn’t that be a debt for ENIC then and not the club?

 

[arthurgrimsdell]

Ah ok. Wouldn’t that be a debt for ENIC then and not the club?

Yes. The interesting thing is how they would service that debt, though since it's ENIC's problem rather than Tottenham's perhaps it's of no great importance to the club, unless they start paying themselves dividends for their shares in the club, which so far they have not done, though Sugar used to.

 

[SecretLemonadeDrinker]

My mistake. I should have stated "interest on the funding for their new shares". There have been suggestions that ENIC borrowed in order to fund the purchase of new shares since ENIC appears to now be a one investment business: investment in Tottenham Hotspur Plc. ENIC has never received dividends from Tottenham Hotspur Ltd (or Tottenham Hotspur PLC), so other things being equal they will have no funds of their own to fund the £150 million share purchase, so they need to borrow from somewhere. They may have borrowed from Joe Lewis and Daniel Levy as individuals, but it appears that the two individuals concerned have not "put their hands in their pockets". Therefore it seems that interest would accrue on the borrowing from some third party or another.

Taking on debt is effectively the same thing.

They will still have to service and pay back the debt. That they have funded this investment with borrowing isn't indicative of parsimony. It merely reflects the likelihood that a) Lewis and Levy don't keep £150m in cash lying around when it could be better invested elsewhere and that b) With borrowing still very cheap, it makes better business sense to borrow.

 

[SecretLemonadeDrinker]

Yes. The interesting thing is how they would service that debt, though since it's ENIC's problem rather than Tottenham's perhaps it's of no great importance to the club, unless they start paying themselves dividends for their shares in the club, which so far they have not done, though Sugar used to.

Even if they did pay themselves a dividend to cover interest charges, it's unlikely that it would be for more than £6m per annum. A small price to pay since, if the £150m is well spent, the benefit should easily outweigh the cost.

 

[BoringOldFan]

The funds appear to come from ENIC Sports Incorporated, the holding company based in the Bahamas. So short of a Panama papers/wikileaks style disclosure, we are unlikely to find out much about the loan that financed the funding, or what security, if any, was out up as collateral.

Tottenham receives injection of 150 million pounds

Tottenham owner ENIC Sports Inc. will inject £150M ($188M) into the club ahead of the new season.

www.sportsbusinessjournal.com

 

[Spurslove]

The funds appear to come from ENIC Sports Incorporated, the holding company based in the Bahamas. So short of a Panama papers/wikileaks style disclosure, we are unlikely to find out much about the loan that financed the funding, or what security, if any, was out up as collateral.

Tottenham receives injection of 150 million pounds

Tottenham owner ENIC Sports Inc. will inject £150M ($188M) into the club ahead of the new season.

www.sportsbusinessjournal.com

My understanding is that it's ENIC and not the club who are responsible for the repayment. I've heard gooners criticising us for borrowing even more on top of our stadium debt. Deluded idiots.

 

[Trix]

Does it really matter where the money has come from as long as A it's legal, and B it isn't going to affect future spending?

Personally I couldn't care less if it benefits Enic/Lewis in the long term as it increases their stake as long as it has no adverse effect on THFC.

 

[Delboy75]

Very interesting Financial Times expert on sky just now. Basically saying majority of future interest will be coming from the states. And the days of single wealthy individuals buying clubs is pretty much over and private equity funds will be the future. With our NFL tie we literally couldn’t be better placed. There must be a trickle down from the Chelsea sale that’s looking at us. I suspect that’s what’s given ENIC the confidence for the investment.

 

[Raitei]

That's unsurprising, the number of individuals who could reach into their choices and spend 4bn are vanishingly small. Football has gone through a period of massive growth, but I don't know how much longer that lasts, we've already seen the domestic prem deal flatten.

 

[fishhhandaricecake]

Does it really matter where the money has come from as long as A it's legal, and B it isn't going to affect future spending?

Personally I couldn't care less if it benefits Enic/Lewis in the long term as it increases their stake as long as it has no adverse effect on THFC.

Exactly this. At the end of the day it will move the club forward on the pitch, if it benefits ENIC longer term then fine but as you say if it is legal and won't effect future spending then great. But mate people will always find an angle and reason to complain or turn a positive into a negative. Yawn.

 

[McFlash]

Does it really matter where the money has come from as long as A it's legal, and B it isn't going to affect future spending?

Personally I couldn't care less if it benefits Enic/Lewis in the long term as it increases their stake as long as it has no adverse effect on THFC.

Exactly but it feels like some fans are just desperate to try and find any angle to cast doubt on ENIC.
Even when they break the mould and do something that we've all been crying out for, for the past 20 years and given us some cash to spend on the team, some people are trying to find a negative spin.

I've said it before and I'll say it again, Enic are possibly the best football owners out there and some people should be careful what they wish for.
That's in no way saying that Enic have been perfect and haven't made mistakes but all in all, we've come a bloody long way since they took over.

 

[Delboy75]

I saw via Kieran Maguire that the first Tranche on the stadium debt is due in 2029 I think it’s smallest £50m although that’s obviously a sizeable amount. The biggest tranche £300m is 2051 (?). Although by 2029 our revenue will probably be £600m + so it’s not really that significant. But I wonder if they will actually start paying it off or kick it down the road again that’s if they are still even here.

 

[he is you know!]

I saw via Kieran Maguire that the first Tranche on the stadium debt is due in 2029 I think it’s smallest £50m although that’s obviously a sizeable amount. The biggest tranche £300m is 2051 (?). Although by 2029 our revenue will probably be £600m + so it’s not really that significant. But I wonder if they will actually start paying it off or kick it down the road again that’s if they are still even here.

I'm sure others will be able to clarify, but I thought we were paying it off annually at around 25/30m. Why would we "save" it to pay off in tranches?

 

[vegassd]

I'm sure others will be able to clarify, but I thought we were paying it off annually at around 25/30m. Why would we "save" it to pay off in tranches?

I think the main motivation is to provide flexibility when it comes to the balance sheet.

The debt is refinanced as bonds which become payable in chunks, and from the bits and pieces I've read about it, it sound like this is what most people do when you talking about hundreds of millions. It wouldn't surprise me if there are new tools/products used when it comes to paying off the bonds either - Levy the accountant will kick into gear and find the cheapest way to raise the money.

 

[HodisGawd]

Exactly but it feels like some fans are just desperate to try and find any angle to cast doubt on ENIC.
Even when they break the mould and do something that we've all been crying out for, for the past 20 years and given us some cash to spend on the team, some people are trying to find a negative spin.

I've said it before and I'll say it again, Enic are possibly the best football owners out there and some people should be careful what they wish for.
That's in no way saying that Enic have been perfect and haven't made mistakes but all in all, we've come a bloody long way since they took over.

An outbreak of common sense in this thread. It is a time honoured tradition for fans to dislike their club's owners. But too many of our fans really take this to an unreasonable extreme. ENIC are already the best owners we've had in living memory. What they have done for the club is incredible. That's not to say they are without fault. But seriously, the last thing we want is to be sold. Most club owners are shitty.

 

[BoringOldFan]

I think the main motivation is to provide flexibility when it comes to the balance sheet.

The debt is refinanced as bonds which become payable in chunks, and from the bits and pieces I've read about it, it sound like this is what most people do when you talking about hundreds of millions. It wouldn't surprise me if there are new tools/products used when it comes to paying off the bonds either - Levy the accountant will kick into gear and find the cheapest way to raise the money.

Yes that’s my understanding of it, too. The £25-30m figure is the annual interest payment. I don’t believe there are any capital repayments in that. So at some point the principal becomes repayable. But with bonds like this what generally happens is that they are replaced with new bonds when they become due, albeit probably at a higher interest rate than before.

 

[BoringOldFan]

Very interesting Financial Times expert on sky just now. Basically saying majority of future interest will be coming from the states. And the days of single wealthy individuals buying clubs is pretty much over and private equity funds will be the future. With our NFL tie we literally couldn’t be better placed. There must be a trickle down from the Chelsea sale that’s looking at us. I suspect that’s what’s given ENIC the confidence for the investment.

From what I read in the news, most individual billionaires are more interested in building spaceships that look like a plaster cast of their own knob.

 

[BoringOldFan]

Exactly this. At the end of the day it will move the club forward on the pitch, if it benefits ENIC longer term then fine but as you say if it is legal and won't effect future spending then great. But mate people will always find an angle and reason to complain or turn a positive into a negative. Yawn.

Totally agree on that. I have no doubts it is all legal and above board. The only thing I would like to know is what other source of revenue does ENIC Sports Inc have other than THFC to pay the interest, and ultimately repay the loan?

 

[Saoirse]

But too many of our fans really take this to an unreasonable extreme.

I really don't see much criticism of them at all at the moment, let alone an "unreasonable extreme". Yes, some people had their past issues with ENIC. But if we're going to let their bygones be bygones, we need to do the same for everyone. We're all behind the club right now.

 

[Delboy75]

I'm sure others will be able to clarify, but I thought we were paying it off annually at around 25/30m. Why would we "save" it to pay off in tranches?

We only pay interest initially at a very low rate. As said first actual payment of the debt is 2029 the last (£300m) is 2051. I guess the basic idea is to feel the real benefit of the increased revenue before we start paying the debt. Plus you’d also expect other revenue streams to naturally increase. So say in ten years if we have to pay £100m chunk and our revenue is £600-700m the pain is obviously much less.

Also just seen we have the most trademark protection of any club in China. I love sh*t like that.