The debt is almost all bonds, having been converted from bank debt about 6 months or so ago.
These bonds have a yield of about 2% and are repayable at various dates up to 30 years - average repayment date is 23 years.
The interest has to be paid each year.
As the bonds are private (not publicly traded) I can only guess at the terms of them - but it may well be that although repayment is in 20 years time we need to put into a different account an amount equal to the average annual capital payment - lets say £30m - each year, and that is not available to spend on players).
So its a long winded way of saying that we put aside £40m pa for the stadium - but our profits after tax last year were £100m or so and I am expecting higher profits to be announced end of March.
So net £60m - and transfers can be paid in various ways, often a £50m transfer for a player on a 5 year contract means paying £10m pa.
Over the last 15 years or so, up to last summer, our next transfer spend has been diddlysquat (= your austerity comment) , So even today the spend is huge by comparison with last 15 years.
And I guess next summer we'll spend another £100m+ on new players.
If you have the time there's a different thread on Spurs finances - and comparisons with other clubs finances Management - Tottenham Hotspur - Financials
