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Spurs refinance construction debt

Tottenham Hotspur have refinanced their construction debt on the new stadium through a private placement in the US: Construction debt

£637million of loans, originally due for repayment in 2022, are now not due to be repaid until an average of 2042.

Kieran Maguire of the PriceofFootball comments, 'At 2.66% interest rate annual finance cost is about £17 million. I would expect the new stadium to increase matchday income from about £40m to £100m. Spurs used to generate more matchday than Arsenal but has reversed since the Emirates was built. Total Premier League figures Spurs £686m Arsenal £1,352m.'

Tottenham Hotspur chairman Daniel Levy told the Financial Times that there would be no change to the frugal business plan and player transfer strategy. He emphasised that the right approach was to build from the bottom up.

Mr Levy said that the Tottenham bond issue was significantly oversubscribed, reflecting a strong credit rating from investment agencies and confidence from US investors that the club is a relatively sure bet in the volatile world of football.

There are signs that the club has begun to loosen its purse strings. This summer net transfer spending was about £120m, among the highest in the Premier League.

Mr Levy wants to transform the Tottenham Hotspur Stadium into a 'Madison Square Garden in London'. He said, 'Clearly, if you have a stadium of this quality and magnitude, to only have 25 to 30 games a year being played by Tottenham Hotspur - it's not making use of the capital we have invested.'

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