ENIC...

[spursfan77]

Doesn’t sound great does it although I’ll let out resident financial experts dissect it and then the BSoDL to tell us why it’s a genius move.

If the loan is on offer and you're going to use it as a safety net then why not take it?

Nobody knows how long it will be until the stadium is fully income producing again.

 

[coys200]

United took £140m loan at 1.5%. Levy done a great deal leaves us secure.

 

[Metalhead]

Tottenham Hotspur have moved to ease some of the financial pressure they face as a result of the coronavirus outbreak by borrowing £175 million from the Bank of England, The Athletic understands.
The north London club met a set of strict criteria to qualify for the government’s Covid Corporate Financing Facility (CCFF), which will provide an unsecured loan — repayable in full at a rate of 0.5 per cent — to give them financial flexibility and additional working capital during the crisis. Spurs estimate they may stand to lose more than £200 million of revenue in the period from the start of lockdown to June 2021.
The CCCF was set up on March 17 to support large credit-worthy companies affected by the pandemic. The Bank of England intends the scheme to be utilised as a way of assisting firms to bridge disruption to their cash flows.
It is only available to firms with an investment grade credit rating — the highest level of credit rating, which reflects at least an adequate capacity to meet financial commitments — and who make a material contribution to the UK economy.
Manchester United are thought to be the only other Premier League club who would be eligible for the CCFF scheme by virtue of having a formal credit rating from an agency. The CCFF is thought to have loaned more than £20 billion so far to around 100 companies, including EasyJet, Marks & Spencers and Greggs. The Bank of England is expected to confirm a list of the companies to have borrowed from it on Thursday afternoon.
Spurs satisfied the CCFF stipulations after they had £525 million of stadium debt refinanced last year. As first reported by The Athletic, Spurs confirmed in September that Bank of America Merrill Lynch and HSBC had helped to refinance the debt on the private placements market in the USA, over long maturities and at low-interest rates.
Under the scheme, the Bank of England has purchased £175 million of “Commercial Paper” — a short-term obligation sold from one company to another for immediate cash needs — from Tottenham. It is not free money, although it comes at a low, commercial interest rate.
Tottenham will have to repay the loan in April 2021, unless they re-draw it for another year, but the cash will assist in seeing them through what is expected to be a highly challenging period. The finance will not be spent on player transfers, with the club unlikely to have any budget for signings in the next window unless they sell.
In a climate of such uncertainty for football and the economy, Spurs view taking this loan as a prudent move that still gives them financial capacity and flexibility through the next year. The money will also enable Tottenham to continue supporting their local communities and stakeholders.
Throughout the coronavirus stoppage, the Tottenham Hotspur Stadium has been made available for North Middlesex Hospital’s women’s outpatient services. In the coming months — except when matches are taking place — it will continue to offer antenatal services, COVID-19 testing and a food hub. The antenatal facilities have been moved to the NFL section of the ground to free up medical rooms for use by football staff once fixtures resume.
Tottenham, like all football clubs, have seen their revenues severely impacted since coronavirus halted sport in mid-March. Manchester United, for example, made a £22.9 million loss in the last financial quarter. But Tottenham have been especially badly-hit given the money they expected to make through their new stadium.
Spurs have not played since they were knocked out of the Champions League by RB Leipzig on March 10 and have missed out on revenue from their postponed five remaining Premier League home games — including Manchester United and derbies against London rivals West Ham United and Arsenal. Last month, they announced a pro-rata refund for season ticket holders.
There is still uncertainty as to how much the Premier League’s rebate to broadcasters will cost its clubs, and at which point next season they can have paying fans back in the stadium. Tottenham chairman Daniel Levy is especially keen to explore new scientific and technological solutions — such as digital health passports and smartphone apps currently being worked on by start-up firms — that might help pave the way for fans to attend games.
As well as those postponed football matches, Spurs have lost out on huge sums from the cancellations of non-football events this year.
The Tottenham Hotspur Stadium was meant to host Saracens against Harlequins in Premiership rugby union in March, two Guns N’Roses concerts in May, Capital Radio’s Summertime Ball concert this weekend, Anthony Joshua’s world heavyweight title fight against Kubrat Pulev later this month, a night of Lady Gaga’s Chromatica Ball world tour next month, England against Australia in the rugby league Ashes in November, as well as two money-spinning NFL games this autumn.
Against such blows to income, Tottenham’s outgoings have still been significant in recent months. A decision to have some non-playing staff salaries paid by the government furlough scheme was reversed following widespread criticism,meaning the club have continued to pay those wages in recent months. And there has been no agreement with the players about a wage deferral or cut, with Levy waiting to assess the broader Premier League situation. The only cut has been to the salaries of the club’s board.
Before play was suspended, Tottenham were one of the most financially secure clubs in the Premier League.
Their accounts for last season, published at the start of the coronavirus crisis, announced that the club made a post-tax profit of £68.6 million for last season, with a pre-tax profit of £87.4 million, the highest in the league.

Thanks for posting this.

 

[matthew.absurdum]

I am not worried. All clubs will face the same financial problem now.

 

[King of Otters]

I am not worried. All clubs will face the same financial problem now.

Clubs who are heavily reliant on match day income will face serious problems for a long time to come.

Clubs like Liverpool, Utd, City and Chelsea, who generate tons of commercial revenue and/or are financed by billionaires won’t be hit as hard.

 

[pelayo59]

Do you have list how many non-matchdays event happened last year? Of course it will have some some impact that we won't have that this summer but we were profitable before that

 

[coys200]

Clubs who are heavily reliant on match day income will face serious problems for a long time to come.

Clubs like Liverpool, Utd, City and Chelsea, who generate tons of commercial revenue and/or are financed by billionaires won’t be hit as hard.

Liverpool owners are worth half of joe Lewis. Plus they are solely a sports investment company with no sport being played worldwide. Liverpool have a huge wage bill, they are fortunate for last 2 years CL money.

 

[spursfan77]

 

[King of Otters]

Liverpool owners are worth half of joe Lewis. Plus they are solely a sports investment company with no sport being played worldwide. Liverpool have a huge wage bill, they are fortunate for last 2 years CL money.

What their owners are worth in respect to Joe Lewis is irrelevant as neither club is directly financed by their ownership.

It’s a fact that their commercial income outstrips ours by over £50 million, and that’s not something that’s likely to be impacted massively by the pandemic, unlike virtually every other revenue stream clubs usually rely on.

 

[dtxspurs]

We're never going to buy a player ever again

 

[pelayo59]

Loaned to Tottenham Hotspur Stadium Ltd, is it changes something?

 

[yankspurs]

Liverpool owners are worth half of joe Lewis. Plus they are solely a sports investment company with no sport being played worldwide. Liverpool have a huge wage bill, they are fortunate for last 2 years CL money.

Liverpool's owners have been busy cutting costs of their flagship team in the states for the last 3 years. If anyone thinks that wont happen to Liverpool, they are sorely mistaken. Especially during this crisis.

 

[King of Otters]

The only positive, from a horribly cynical standpoint, is that clubs further down the food chain are likely to be hit even harder than we have been.

The market value of players like Eze from QPR will have plummeted compared to what he would have gone for in Jan.

 

[carmeldevil]

Liverpool owners are worth half of joe Lewis. Plus they are solely a sports investment company with no sport being played worldwide. Liverpool have a huge wage bill, they are fortunate for last 2 years CL money.

Have you been paying attention to what's happening to their other team, Boston Red Sox? That team has huge revenues too and yet they are cutting costs.

Looks like owners everywhere trying to conserve their personal holdings and using OPM to keep their clubs/teams going.

edit: ninja'ed by yankspurs. of course he would know

 

[spursfan77]

It's worth bearing in mind its the stadium company taking out the loan, not the actual club.

Tottenham Hotspur Stadium Ltd (“THS”) confirmed as eligible issuer for the Covid Corporate Financing Facility (“CCFF”) | Tottenham Hotspur

THS has met the criteria set by the Bank of England for the CCFF and has issued £175m of Commercial Paper through this facility.

www.tottenhamhotspur.com

 

[Trotter]

It's worth bearing in mind its the stadium company taking out the loan, not the actual club.

Tottenham Hotspur Stadium Ltd (“THS”) confirmed as eligible issuer for the Covid Corporate Financing Facility (“CCFF”) | Tottenham Hotspur

THS has met the criteria set by the Bank of England for the CCFF and has issued £175m of Commercial Paper through this facility.

www.tottenhamhotspur.com

Tottenham Hotspur Stadium Ltd is a subsidiary of Tottenham Hotspur Ltd, and is where the stadium asset, loan, costs and match day revenues have been held, since June 2018.

 

[yankspurs]

The club needs fans back in the stadium so badly. I guess that could happen at a capacity cap before a vaccine if infection rate falls to below zero and stays there(ie no second wave) but i think we have to wait for a vaccine. Good news is the Moderna trial is apparently beginning phase 3 soon and if successful & approved, there could be a few hundred million doses by beginning of next year.

 

[SirHarryHotspur]

After the latest financial commonsense pursued by Daniel wonder how long it will be before the ENIC and Levy bashers start shouting how come a rich club like Spurs get a loan from the Bank of England . Fact is football clubs are not rich, be nice to see someone with commonsense like Martin Lewis financial expert give his views on how ENIC and Daniel run the business.

 

[spursfan77]

After the latest financial commonsense pursued by Daniel wonder how long it will be before the ENIC and Levy bashers start shouting how come a rich club like Spurs get a loan from the Bank of England . Fact is football clubs are not rich, be nice to see someone with commonsense like Martin Lewis financial expert give his views on how ENIC and Daniel run the business.

fans of other clubs have already started on the twitter stories.

 

[Trotter]

The club needs fans back in the stadium so badly. I guess that could happen at a capacity cap before a vaccine if infection rate falls to below zero and stays there(ie no second wave) but i think we have to wait for a vaccine. Good news is the Moderna trial is apparently beginning phase 3 soon and if successful & approved, there could be a few hundred million doses by beginning of next year.

Sort of off topic, but how can infection rate get to below zero ?