i hope he does otherwise in 20 yrs we will be in trouble
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Management Tottenham Hotspur Financials - Year to 30 June 2020
- Thread starter Spursidol
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Uh, isn't a giant bullet repayment in 2051 bad?
Club announcement - Finance update - CCFF repaid, short-term debt replaced with long-term | Tottenham Hotspur
The Club has completed on an institutional fund raising of £250m, with an average tenure of over 20 years and an average interest rate of circa 2.8%. The debt stack includes a new 30-year tranche, with a bullet repayment in 2051 and is a unique financing for any sports entity with the long-term...www.tottenhamhotspur.com
Club announcement that it raised £250m in new bonds repayable between 15 years and 30 years, with interest only payable from now until first bond requires repayment. Interest only 2.8% fixed for full tenure of bond.
The £250m used to repay the covid loan of £175m and tidy up the Bank of Ameriaca term loan which now has a 15 year repayment term after partial repayment.
So Spurs no longer have any short term repayment loans to any banks ... which is good news.
That means we're paying only the interest upfront for 30 years and then the whole thing comes due.
I don't claim intimate knowledge of the clubs finances, but that sounds like just kicking the debt can down the road, no?
Haven't looked into it but we could still be making repayments as we go and then wrapping it up with the bullet.
Or we can just refinance again when we get there. Debt value will have shrunk a lot in 30 years.
No it’s standard. Chance are we have a saving account to build up the cash but if we hit the date and can’t pay all of it we will just re-finance and extend. The only issue would be if interest rates where a lot higher when we reached that point but the value of the debt due to inflation would be a lot lower then relatively speaking.
The club now has a series of bonds which are repayable between 15 years and 30 years into the future.
Prior to pandemic Club was getting to generating £100m+ cash a year from profits, and whilst I suspect we need a hefty spend on players for next couple of years, after that I imagine the idea is we could afford to buy back say £30m of bonds each year which would repay majority of the bonds.
Worth noting that bods are often refinanced - and given these are at average of 2.8% and interest rates like;y to be higher in 5 or 10 years time, it will be in bond holders interest to agree to extend the tenure (life) of the bonds to a later repayment date, with a higher interest rate in line with the prevaling interst rates at the time.
So yes, it is kicking can down the road but its certainly manageable now.
Personally I'd hope Levy looked at the option of bringining in a new shareholder taking say a 25% stake with new shares meaning new cash comes into Spurs which is not repayable to de-leverage Spurs. Maybe that is next step if Spurs stop generating as much cash as before.
Aston Villa really went for it, 152 mill net spendComparisons.........
Our spending was aided by the almost 100 mill we earned from the CL run all the way to the final
Yep
Their owners are really going for it.
Unlike other clubs, they aren't putting it down as a loan/debt to the club.
Free money basically.