Spurs Financials 2019/20

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No CL and looks like no Europa league so that’s minimum 6 home games + tv money lost but is there NFL games scheduled? Lady Ga Ga has a concert planned but that’s next year and is there a boxing match would the latter 3 make up for the shortfall I’ve no clue what each of these events would bring in money wise.
 
No CL and looks like no Europa league so that’s minimum 6 home games + tv money lost but is there NFL games scheduled? Lady Ga Ga has a concert planned but that’s next year and is there a boxing match would the latter 3 make up for the shortfall I’ve no clue what each of these events would bring in money wise.

NFL have already cancelled the games scheduled for November - the contract was for 20 games over 10 years, so I guess we may get 3 games in autumn 2021.

I'm sure the events team will be trying to fill the schedule. Probably worth £25m or so a year for a full schedule (rough order of magnitude)

The other revenue steam we've not seen much of is the 'exhibition & conference' business (apparently 3rd largest premises in London for these). I know we had a fair few of them in the month or two just after the stadium opened as lots of people put their pics on social media, but no idea how much we had generated pre-covid.........but in a full pre-covid year it wouldn't have surprised me if it was £25m+ pa so worthwhile (rough order of magnitude).

Impossible really to track revenues atm, as we have not had a set of accounts with a full year at the new stadium yet.
 
The stadium is going to be an albatross around the club's neck for many years now. It's a lot of money in terms of original outlay and now it is losing money like a widow in a casino.
I think the only resolution will be - either new owners, who pay off the debt, but that's unlikely as even our Russian and Saudi oligarch friends are feeling the pinch now.
Or we accept we have to play negative Mourinho-ball for the next five seasons to remain in the top six without any real investment into the squad.
The financials are going to be dire - Spurs had to take a Bank of England loan, and ultimately you have to demonstrate significant potential for financial distress for one of them.
Even with a resolution to Covid like a vaccine, the potential for the events side of the business are v limited as I think the days of paying £100 for a ticket to a boxing match are over for many people due to the financial crunch.
 
The stadium isn't a problem. Unfortunately due to covid/economy we will bring in less money in all areas and have less to spend and pay off the stadium in the next two years. After that though it will largely be as before except stuff like conferences will take longer to come back and entertainment stuff less lucrative at first. The stadium debt is already well structured. There is no issue. The covid debt from govt was very cheap money which is why we got it. It was just business prudence not desperation.
 
The stadium is going to be an albatross around the club's neck for many years now. It's a lot of money in terms of original outlay and now it is losing money like a widow in a casino.
I think the only resolution will be - either new owners, who pay off the debt, but that's unlikely as even our Russian and Saudi oligarch friends are feeling the pinch now.
Or we accept we have to play negative Mourinho-ball for the next five seasons to remain in the top six without any real investment into the squad.
The financials are going to be dire - Spurs had to take a Bank of England loan, and ultimately you have to demonstrate significant potential for financial distress for one of them.
Even with a resolution to Covid like a vaccine, the potential for the events side of the business are v limited as I think the days of paying £100 for a ticket to a boxing match are over for many people due to the financial crunch.

The financials actually leave us instantly in a better position with the stadium build and bond agreement, but only once the fans return to the stadium.

Total match receipts for our last season at WHL whereby the stadium was complete (2016) was £40.782m. Our estimated match day revenue in the new place is rumoured to be c£100m so instantly it’s £60m better off. For arguments sake let’s say we have to pay back £40m each season in loans and interest.... we are still instantly £20m better off regardless of loans and interest.

The issue is if we cannot obtain that matchday revenue during times where supporters can’t attend, can’t use the facilities, until they can it will be a burden but once that’s over, as long as we can hit the £100m mark most seasons it’s an instant positive regardless of costs incurred.

I speculate that the reason we took out a Bank of England loan is because it’s next to nothing in interest and us along with Man U I think were the only clubs who qualified for it due to our AAA credit ratings. In a time where we don’t know what’s around then corner the club probably looked at the risk/ reward and saw the BofE and their ridiculously low interest rates as a no brainier.

We owed £1.2bn, we’ve already paid off half of that prior to moving into the new stadium, our situation isn’t as bad as face value would seem. Check out Comlanies house website if you have an interest in digging into things more 👍

 
I'm not so sure. The idea of well structured debt is often used to justify what is an overleveraged financial situation. Debt is debt, ok we have had a period of historically low interest rates, but that is not guaranteed for the next ten years now.
Covid was an outlier, as was Brexit at some point, but in the event of a no-deal Brexit, sterling will get hammered in financial markets, and interest rates will shoot up to protect the currency. That makes being in a highly indebted situation a very different scenario.
I also think fans are in wonderland if they think we are not going to have one hell of a recession ahead. If you lose your job, or fear losing it in the next few months, you won't renew your season ticket. So the idea we will continue to make however millions per home game is questionable.
I know a lot of spurs ST holders in your normal Spurs like jobs - running infrastructure companies, or coffee sellers for offices - they think revenues will be down at least 50percent for a year, maybe longer.
 
I'm not so sure. The idea of well structured debt is often used to justify what is an overleveraged financial situation. Debt is debt, ok we have had a period of historically low interest rates, but that is not guaranteed for the next ten years now.
Covid was an outlier, as was Brexit at some point, but in the event of a no-deal Brexit, sterling will get hammered in financial markets, and interest rates will shoot up to protect the currency. That makes being in a highly indebted situation a very different scenario.
I also think fans are in wonderland if they think we are not going to have one hell of a recession ahead. If you lose your job, or fear losing it in the next few months, you won't renew your season ticket. So the idea we will continue to make however millions per home game is questionable.
I know a lot of spurs ST holders in your normal Spurs like jobs - running infrastructure companies, or coffee sellers for offices - they think revenues will be down at least 50percent for a year, maybe longer.

The bonds carry interest at a fixed rate for the next circa 23 years (average at 2.66%) - that's why we switched out of bank loans to get a fixed interest rate. Cost circa £16m pa interest, repayment at maturity.

And the £175m coronavirus loan carries an interest rate of 0.5% so if we use it, it costs less than £1m.

So Spurs are well set up financially.

Revenues come from 3 main sources :

Matchday revenues - clearly this may well be affected, with reduced crowds allowed back in the stadium initially. Spurs have a significant waiting list for tickets and whilst there maybe a high unemployment rate of (say) 15%, Spurs problem will be how to allocate seats if there is a reduced capacity initially - it will have little problem in selling seats. Only question is when stadiums will be allowed to sell 100% of seats - and that will affect all PL clubs. The other point to make is Spurs are much less dependent upon match day revenues than they used to be. The biggest issue will be loss of european match revenues and prize money.

TV revenues - Unaffected by covid until the end of the tv deals.

Commercial revenues - Sponsorship deal income was growing significantly pre-covid. More likely to plateau than fall. Spurs had started a significant exhibition and conference business, but that may be hit in the next 12 months, but its revenues we never had at WHL, and not in lsast years accounts either.

There is absolutely no way at all that revenues will be down 50% on previous years - with additional revenue streams in the new stadium (versus WHL), its probable that revenue growth will not meet pre-covid expectations, and whilst we will get some benefit from these additional revenue streams that might just replace other revenue losses leaving no change on previous years revenues. If we do not get european football that will result in revenue loss - but that's nothing to do with covid.

With the lowest wages/revenues ratio in PL Spurs will be far better placed than most clubs to ride out covid.

However don't expect the same £100m + transfer pot this summer that happened last summer - and other than Mancity (who avoid any ffp rules and owners regard the club as cleaning the country's image so money is no object) other clubs ae likely to be similarly cautious in spending big money.
 
The bonds carry interest at a fixed rate for the next circa 23 years (average at 2.66%) - that's why we switched out of bank loans to get a fixed interest rate. Cost circa £16m pa interest, repayment at maturity.

And the £175m coronavirus loan carries an interest rate of 0.5% so if we use it, it costs less than £1m.

So Spurs are well set up financially.

Revenues come from 3 main sources :

Matchday revenues - clearly this may well be affected, with reduced crowds allowed back in the stadium initially. Spurs have a significant waiting list for tickets and whilst there maybe a high unemployment rate of (say) 15%, Spurs problem will be how to allocate seats if there is a reduced capacity initially - it will have little problem in selling seats. Only question is when stadiums will be allowed to sell 100% of seats - and that will affect all PL clubs. The other point to make is Spurs are much less dependent upon match day revenues than they used to be. The biggest issue will be loss of european match revenues and prize money.

TV revenues - Unaffected by covid until the end of the tv deals.

Commercial revenues - Sponsorship deal income was growing significantly pre-covid. More likely to plateau than fall. Spurs had started a significant exhibition and conference business, but that may be hit in the next 12 months, but its revenues we never had at WHL, and not in lsast years accounts either.

There is absolutely no way at all that revenues will be down 50% on previous years - with additional revenue streams in the new stadium (versus WHL), its probable that revenue growth will not meet pre-covid expectations, and whilst we will get some benefit from these additional revenue streams that might just replace other revenue losses leaving no change on previous years revenues. If we do not get european football that will result in revenue loss - but that's nothing to do with covid.

With the lowest wages/revenues ratio in PL Spurs will be far better placed than most clubs to ride out covid.

However don't expect the same £100m + transfer pot this summer that happened last summer - and other than Mancity (who avoid any ffp rules and owners regard the club as cleaning the country's image so money is no object) other clubs ae likely to be similarly cautious in spending big money.
I suppose we just disagree on what it means to be well set up financially. I think having little to no debt has obviously not been an advantage for the last 30 years, with historically low interest rates and significant asset price appreciation. But things can turn very dramatically and there are signs that period could be coming to an end.
I agree it was a wise decision to convert the capital into bonds. But it is still a relatively high amount of debt to carry into a very unpredictable economic and political environment - and that is when debt really starts to matter in terms of growing any company, and in particular selling it on. The B of E has changed Ts and Cs on its covid related loans and they could well do the same to the Spurs loan. Bonds can also be downgraded and then sold on the open market to other, perhaps more forceful, creditors.
How will the global branding of the club be affected if the Amazon documentary, watched by millions worldwide, make the club a laughing stock?
I'm hopeful all the points you raise will materialise but the virus (a complete outlier, I know) may well have a second wave and that could mean a 50percent collapse in overall club revenues, including the loss of CL revenues, which are significantly higher than Europa.
Spurs ability to trade their way out of the situation is impacted by the fact this is an aging squad, or an unproven one, only Kane would demand a big fee. TV revenues may well significantly drop in general with people deciding to cancel their home Sky sports packages; and not visiting the pub to watch games.
So I suppose the point I'm making is that the analysis undertaken by Levy in terms of taking on debt was based on a historical model of low inflation, rising asset prices and low unemployment; that model IMO is being upturned by the virus. Of course Levy is not to blame for not anticipating such a pandemic; but I think they should have invested more around 10 years ago, and now their late timing and overspending (why didn't we just stick to a £500mill new stadium) may have significant financial repercussions for the future.
 
I suppose we just disagree on what it means to be well set up financially. I think having little to no debt has obviously not been an advantage for the last 30 years, with historically low interest rates and significant asset price appreciation. But things can turn very dramatically and there are signs that period could be coming to an end.
I agree it was a wise decision to convert the capital into bonds. But it is still a relatively high amount of debt to carry into a very unpredictable economic and political environment - and that is when debt really starts to matter in terms of growing any company, and in particular selling it on. The B of E has changed Ts and Cs on its covid related loans and they could well do the same to the Spurs loan. Bonds can also be downgraded and then sold on the open market to other, perhaps more forceful, creditors.
How will the global branding of the club be affected if the Amazon documentary, watched by millions worldwide, make the club a laughing stock?
I'm hopeful all the points you raise will materialise but the virus (a complete outlier, I know) may well have a second wave and that could mean a 50percent collapse in overall club revenues, including the loss of CL revenues, which are significantly higher than Europa.
Spurs ability to trade their way out of the situation is impacted by the fact this is an aging squad, or an unproven one, only Kane would demand a big fee. TV revenues may well significantly drop in general with people deciding to cancel their home Sky sports packages; and not visiting the pub to watch games.
So I suppose the point I'm making is that the analysis undertaken by Levy in terms of taking on debt was based on a historical model of low inflation, rising asset prices and low unemployment; that model IMO is being upturned by the virus. Of course Levy is not to blame for not anticipating such a pandemic; but I think they should have invested more around 10 years ago, and now their late timing and overspending (why didn't we just stick to a £500mill new stadium) may have significant financial repercussions for the future.

Covid was not foreseen by anyone, so can't blame Levy who wanted to deliver the 'best stadium' possible - and some of the overrun comes from Brexit affecting exchange rates putting up prices of the metal used in the stadium, again not foreseen. 20/20 hindsight is a wonderful thing but when Levy took those decisions they were good decisions.

Spurs have paid off half the cost of the stadium and the other half financed by bonds and Spurs will pay those off by profits over a 23 year period. And it doesn't matter who owns the bonds provided Spurs keep up interest payments (which at circa £16m are not significant) and any other term of the bond (usually not onerous). So I repeat Spurs are in a very good financial position now with a stadium which will deliver cash flow for the foreseeable future - possibly not as much as estimated pre-covid but still significant profits.

And Bank of England cannot change the terms of the bonds, and nor can the US banks who currently own the bonds nor can anybody that buys the bonds from the current owners - .so that's not even a risk.

The only thing on revenues is loss of european revenues - nothing to do with covid - and I doubt these were in Spurs business plans for every year, one in two or three years perhaps. So whilst we want to get into Europe every year, financially its not a problem if we are out every other year.

TV revenues are fixed by contracts for typically 3 or 5 year contracts, so its irrelevant whether there is a reduction in numbers of subscribers in the short term. Its possible the next TV round might be at lower revenues, but that has never happened, and indeed growth has been highest in the sale of overseas tv rights, and that is expected to continue.

So I repeat the effect of covid on Spurs is likely to be short term (eg. clearly the period from March to the end of this season, matchday revenues will be almost zero) and will have limited effect on Spurs abilities to generate some profits. Worth recalling that Spurs last couple of years profits are amongst highest seen in PL, in part due to the lowest wages/revenues in PL, so Spurs will remain better off than probably 75%+ of other PL clubs.

Which means other clubs will go out of business a long time before Spurs
 
The bonds carry interest at a fixed rate for the next circa 23 years (average at 2.66%) - that's why we switched out of bank loans to get a fixed interest rate. Cost circa £16m pa interest, repayment at maturity.

And the £175m coronavirus loan carries an interest rate of 0.5% so if we use it, it costs less than £1m.

So Spurs are well set up financially.

Revenues come from 3 main sources :

Matchday revenues - clearly this may well be affected, with reduced crowds allowed back in the stadium initially. Spurs have a significant waiting list for tickets and whilst there maybe a high unemployment rate of (say) 15%, Spurs problem will be how to allocate seats if there is a reduced capacity initially - it will have little problem in selling seats. Only question is when stadiums will be allowed to sell 100% of seats - and that will affect all PL clubs. The other point to make is Spurs are much less dependent upon match day revenues than they used to be. The biggest issue will be loss of european match revenues and prize money.

TV revenues - Unaffected by covid until the end of the tv deals.

Commercial revenues - Sponsorship deal income was growing significantly pre-covid. More likely to plateau than fall. Spurs had started a significant exhibition and conference business, but that may be hit in the next 12 months, but its revenues we never had at WHL, and not in lsast years accounts either.

There is absolutely no way at all that revenues will be down 50% on previous years - with additional revenue streams in the new stadium (versus WHL), its probable that revenue growth will not meet pre-covid expectations, and whilst we will get some benefit from these additional revenue streams that might just replace other revenue losses leaving no change on previous years revenues. If we do not get european football that will result in revenue loss - but that's nothing to do with covid.

With the lowest wages/revenues ratio in PL Spurs will be far better placed than most clubs to ride out covid.

However don't expect the same £100m + transfer pot this summer that happened last summer - and other than Mancity (who avoid any ffp rules and owners regard the club as cleaning the country's image so money is no object) other clubs ae likely to be similarly cautious in spending big money.
Also, being a London club there will be fans with money to buy tickets even if unemployment gets high. Clubs in less affluent parts of the country will suffer more potentially.
 


A quick reminder of the value that non football events have to Spurs - we will be missing on a few this summer but once they are back we get a lot more revenue in, one of which uses is obviously a boost to transfer funds.
 


A quick reminder of the value that non football events have to Spurs - we will be missing on a few this summer but once they are back we get a lot more revenue in, one of which uses is obviously a boost to transfer funds.


Ideally we do both but they are a money spinner we can use to pay off the loans. But according to most people on here the club isn't going to see the money, its going to be spent on Joe Lewis's new dinghy for his yacht.
 
Ideally we do both but they are a money spinner we can use to pay off the loans. But according to most people on here the club isn't going to see the money, its going to be spent on Joe Lewis's new dinghy for his yacht.

At some stage this kind of money will be used to buy back the bonds, but given they mature on average in 23 years time, I'd suggest that's a good 5 years away ?

In the meantime in the next year or so can see a sizeable chunk going into transfer funds which have been trimmed by probably £100m+ this summer due to covid.

Joe Lewis is likely to get his reward if and when Spurs are sold - unless his hand is forced by his other investments held through Tavistock ( he has a lot of restaurants and hotels/resorts in US which might well be badly affected by covid plus proprty developments), but its said his daughter and her partner take an interest in Spurs so it might pass down a generation. And if he wants £100m or so to fund a new dingy there will be easier ways for him to raise monety than selling a £1bn/£2bn asset called Spurs
 
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Not £40m to sign a serious addition to the XI, but £40m to cover not qualifying for the CL.

Most of the events for this summer will have been cancelled, so events will be from autumn onwards, probably too late and uncertain whether they will happen before next spring to be considered as replacement for CL money (even though EL/CL prize money received at end of season), so not arguing it affects this summer tranfer position.
 
Do you still believe in Father Christmas, mate?
Yes I agree it will be a very long time before these events are back maybe not even next summer and so no chance of any more incoming funds for players wages, transfers or any other purposes. I think those that think we will have an acceptable vaccine to allow fans back in before Christmas are equally delusional.
 
Do you still believe in Father Christmas, mate?
I will be very happy to be proved wrong, but i just cant see the extra money the stadium makes in the future being invested in the squad, I think the long term goal for Enic is to sell the club and then lease the stadium out to the new owners, doing so they make a fortune on selling us, and then they earn all the extra cash the stadium makes from these extra events. I have no evidence to back this up its just my opinion, but they are an investment company, at the end of the day they are here to make cash.
 
I will be very happy to be proved wrong, but i just cant see the extra money the stadium makes in the future being invested in the squad, I think the long term goal for Enic is to sell the club and then lease the stadium out to the new owners, doing so they make a fortune on selling us, and then they earn all the extra cash the stadium makes from these extra events. I have no evidence to back this up its just my opinion, but they are an investment company, at the end of the day they are here to make cash.
Now that is a terrifying scenario
 
I will be very happy to be proved wrong, but i just cant see the extra money the stadium makes in the future being invested in the squad, I think the long term goal for Enic is to sell the club and then lease the stadium out to the new owners, doing so they make a fortune on selling us, and then they earn all the extra cash the stadium makes from these extra events. I have no evidence to back this up its just my opinion, but they are an investment company, at the end of the day they are here to make cash.
Surely nobody in their right mind would buy the club without the stadium
 
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