Skip to main content

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.'

Labels:

Comments

Post a Comment

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...
Post a Comment
Read more

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...
Post a Comment
Read more

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do
Post a Comment
Read more