Tottenham Hotspur - Financials

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Spurs year ended 30 June 2018 accounts are now on Companies House web site.

I'll add a more complete commentary later, but a few initial comments :

1. Results Summary
Record revenues at £381m (last year £310m)

Profit before Interest and Tax £157m (£73m)

Retained Profit after Interest and Tax £113m (£63m) - our highest ever retained profit

Results include profits on sale of players of £73m (last year £40m) from the sale of Walker, Bentaleb, Wimmer, Fazio and N'Jie amongst others.

2. Revenue Analysis (last year in brackets):
Match Day £ 71m (£ 45m)
UEFA Prize Money £ 53m (£38m)
TV and Media £ 148m (£150m)
Commercial £ 109m (£76m)
Total £ 381m (£310m)
So the big increases were from match day income where Spurs benefited from the size of the stadium to attract record crowds and revenues. This will continues into the next year albeit with reduced crowds but including a few matches at NWHL with bigger premium/corporate areas which will help offset a little the reduced attendances at Wembley. The increase in UEFA money probably mainly reflects increased money in the competition. The biggest surprise is the increase in Commercial income of £33m, hadn't expected this increase until we were in NWHL. Augers well as we should get another big jump in 2019/20 from a full year at NWHL.

3. Wages
Spurs wage bill £147m is just above Everton and chasing pack but circa £100m behind Woolwich and other top 6 PL clubs. Spurs and their contractors pay the London Living Wage as their minimum pay to their staff.

DL remuneration £3m (down from £6m including bonuses last year).

4. Fixed Assets

Spend on property and equipment in the year was £493m (mainly on the stadium) to total just over £1 billion (£1.025 bn) at the year end - obviously there has been a further 9 months of spend since that date. The 'spend' in the year includes borrowing costs (interest) of £11.8m which has been capitalised

There is now a breakdown of cost between projects showing the cost of the training centre of £65m (before the hotel/players lodge) and Iillywhite House of £12m, most of the rest of the £1bn relates to the stadium (including equipment) cost.
 
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World record profits.


Think we'll be rebuilding the squad this summer.
I doubt it. They already warned a few months back that that 18-19 financials are likely to be shocking. Between the extra labour costs of the stadium delay, the loss of expected revenue from NWHL not opening (particularly corporate sections), the rubbish attendances at Wembley, the reportedly astronomical cost of game-by-game rent, and crucially the failure so far to find a naming rights partner - it sounds like we're going to be in a pretty uncertain position and that profit will have been used as a buffer.
 

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Club as a part of an email they sent to ST holders back in October with a stadium and financial update.

FINANCIAL UPDATE


The Club continues to operate on a sensible financial basis in order to take a long-term view for the benefit of current as well as future generations of Tottenham Hotspur fans.

The Club’s investment over recent years in facilities has resulted in total gross tangible assets at 30 June, 2018, in excess of £1bn - facilities which include the Training Centre, the new Players’ Lodge, Percy House, home of the Tottenham Hotspur Foundation, Lilywhite House Club offices, new retail warehouse, new Paxton House Ticket Office and now the new stadium along with the newly-opened Spurs Shop – the largest football club store in Europe - plus other property assets.

These investments have been financed by funds from the Club and bank finance, principally from Bank of America Merrill Lynch International, Goldman Sachs Bank USA and HSBC Bank plc (“Banking Partners”) who have provided a development facility of up to £637m. At 30 June, 2018, the Club had net debt of £366m.

This level of investment by the Club has been made possible by record revenues of £381m and profit from operations before football trading, depreciation, interest, tax and exceptional items of £163m for the year to 30 June, 2018. Trading for the current year will, however, be impacted by the additional costs of Wembley and the delay to the opening of the new stadium.

Working with our Banking Partners and our financial advisor, Rothschild & Co, we shall be converting this development facility, which currently expires in April 2022, into notes with a mixture of debt maturities.

The residual amount of gross debt to be converted or extinguished will depend on a number of factors including several commercial discussions.


In recent months we have secured an extended agreement with Nike up to 2033, one of the longest football club deals in Nike’s history. We have also announced a number of new brand partners including, amongst several others, Audi, IWC Schaffhausen, HPE and EA SPORTS.​

They'd already gone out of their way to provide a mid-year update which is unusual for them to warn that trading will be "impacted", and it took another six months to open the ground from then.
 

Airfixx

Take your miserable whining and fuck off.
Club as a part of an email they sent to ST holders back in October with a stadium and financial update.

FINANCIAL UPDATE

The Club continues to operate on a sensible financial basis in order to take a long-term view for the benefit of current as well as future generations of Tottenham Hotspur fans.

The Club’s investment over recent years in facilities has resulted in total gross tangible assets at 30 June, 2018, in excess of £1bn - facilities which include the Training Centre, the new Players’ Lodge, Percy House, home of the Tottenham Hotspur Foundation, Lilywhite House Club offices, new retail warehouse, new Paxton House Ticket Office and now the new stadium along with the newly-opened Spurs Shop – the largest football club store in Europe - plus other property assets.

These investments have been financed by funds from the Club and bank finance, principally from Bank of America Merrill Lynch International, Goldman Sachs Bank USA and HSBC Bank plc (“Banking Partners”) who have provided a development facility of up to £637m. At 30 June, 2018, the Club had net debt of £366m.

This level of investment by the Club has been made possible by record revenues of £381m and profit from operations before football trading, depreciation, interest, tax and exceptional items of £163m for the year to 30 June, 2018. Trading for the current year will, however, be impacted by the additional costs of Wembley and the delay to the opening of the new stadium.

Working with our Banking Partners and our financial advisor, Rothschild & Co, we shall be converting this development facility, which currently expires in April 2022, into notes with a mixture of debt maturities.

The residual amount of gross debt to be converted or extinguished will depend on a number of factors including several commercial discussions.


In recent months we have secured an extended agreement with Nike up to 2033, one of the longest football club deals in Nike’s history. We have also announced a number of new brand partners including, amongst several others, Audi, IWC Schaffhausen, HPE and EA SPORTS.​

They'd already gone out of their way to provide a mid-year update which is unusual for them to warn that trading will be "impacted", and it took another six months to open the ground from then.
This summer's hot topic, right there!

Got a feeling it would be useful to 'sticky' this post in the trf thread.
 

Spurs year ended 30 June 2018 accounts are now on Companies House web site.

I'll add a more complete commentary later, but a few initial comments :

1. Results Summary
Record revenues at £381m (last year £310m)

Profit before Interest and Tax £157m (£73m)

Retained Profit after Interest and Tax £113m (£63m) - our highest ever retained profit

Results include profits on sale of players of £73m (last year £40m) from the sale of Walker, Bentaleb, Wimmer, Fazio and N'Jie amongst others.

2. Revenue Analysis (last year in brackets):
Match Day £ 71m (£ 45m)
UEFA Prize Money £ 53m (£38m)
TV and Media £ 148m (£150m)
Commercial £ 109m (£76m)
Total £ 381m (£310m)
So the big increases were from match day income where Spurs benefited from the size of the stadium to attract record crowds and revenues. This will continues into the next year albeit with reduced crowds but including a few matches at NWHL with bigger premium/corporate areas which will help offset a little the reduced attendances at Wembley. The increase in UEFA money probably mainly reflects increased money in the competition. The biggest surprise is the increase in Commercial income of £33m, hadn't expected this increase until we were in NWHL. Augers well as we should get another big jump in 2019/20 from a full year at NWHL.

3. Wages
Spurs wage bill £147m is just above Everton and chasing pack but circa £100m behind Woolwich and other top 6 PL clubs. Spurs and their contractors pay the London Living Wage as their minimum pay to their staff.

DL remuneration £3m (down from £6m including bonuses last year).

4. Fixed Assets

Spend on property and equipment in the year was £493m (mainly on the stadium) to total just over £1 billion (£1.025 bn) at the year end - obviously there has been a further 9 months of spend since that date. The 'spend' in the year includes borrowing costs (interest) of £11.8m which has been capitalised

There is now a breakdown of cost between projects showing the cost of the training centre of £65m (before the hotel/players lodge) and Iillywhite House of £12m, most of the rest of the £1bn relates to the stadium (including equipment) cost.
So if I am looking at these numbers correctly, and I'd like to believe I am, we can expect revenue to jump another £50m from increased matchday revenue and stadium naming rights for the 2019/20 season. Add another £50m for the 16 non-football events, and we are knocking on the door of half a billion in revenue a year, which would put us only behind the Manchester clubs.

:levylol:
 
Reposting from the ENIC thread...
I always thought that one billion budget was to cover the hotels and apartments as well as the training lodge and Lilywhite House. So the actual land purchase and building works of the stadium by itself is somewhere between (wild guess) £600m - £800m.
And is it "estimated valuation" or actual cash spend?
 
So if I am looking at these numbers correctly, and I'd like to believe I am, we can expect revenue to jump another £50m from increased matchday revenue and stadium naming rights for the 2019/20 season. Add another £50m for the 16 non-football events, and we are knocking on the door of half a billion in revenue a year, which would put us only behind the Manchester clubs.

:levylol:
Worth recalling that the accounts show these match day revenues result from an average crowd of 68,500 per match and I would guess we will be lucky to average more than say 15% below this average at NWHL.. Better corporate facilities at NWHL will mean revenues from that will counteract the lower GA number but I think your £50m extra match day revenue might be optimistic even with a stadium naming rights deal (and that will be for 2019/20 accounts not the current year to June 2019 where due to dropping match day crowds this year match day revenues may drop).

Imo there will be more small scale events held at NWHL and these plus the 16 non footballing events will add revenues but £50m might be optimistic - the 16 events by themselves will not average £ 3m each which would be required to get that to £ 50m. But really difficult to forecast atm
 

Spurs year ended 30 June 2018 accounts are now on Companies House web site.

I'll add a more complete commentary later, but a few initial comments :

1. Results Summary
Record revenues at £381m (last year £310m)

Profit before Interest and Tax £157m (£73m)

Retained Profit after Interest and Tax £113m (£63m) - our highest ever retained profit

Results include profits on sale of players of £73m (last year £40m) from the sale of Walker, Bentaleb, Wimmer, Fazio and N'Jie amongst others.

2. Revenue Analysis (last year in brackets):
Match Day £ 71m (£ 45m)
UEFA Prize Money £ 53m (£38m)
TV and Media £ 148m (£150m)
Commercial £ 109m (£76m)
Total £ 381m (£310m)
So the big increases were from match day income where Spurs benefited from the size of the stadium to attract record crowds and revenues. This will continues into the next year albeit with reduced crowds but including a few matches at NWHL with bigger premium/corporate areas which will help offset a little the reduced attendances at Wembley. The increase in UEFA money probably mainly reflects increased money in the competition. The biggest surprise is the increase in Commercial income of £33m, hadn't expected this increase until we were in NWHL. Augers well as we should get another big jump in 2019/20 from a full year at NWHL.

3. Wages
Spurs wage bill £147m is just above Everton and chasing pack but circa £100m behind Woolwich and other top 6 PL clubs. Spurs and their contractors pay the London Living Wage as their minimum pay to their staff.

DL remuneration £3m (down from £6m including bonuses last year).

4. Fixed Assets

Spend on property and equipment in the year was £493m (mainly on the stadium) to total just over £1 billion (£1.025 bn) at the year end - obviously there has been a further 9 months of spend since that date. The 'spend' in the year includes borrowing costs (interest) of £11.8m which has been capitalised

There is now a breakdown of cost between projects showing the cost of the training centre of £65m (before the hotel/players lodge) and Iillywhite House of £12m, most of the rest of the £1bn relates to the stadium (including equipment) cost.
The TH stadium accounts show the player lodge show the player lodge CST a further £ 41.5 m.

Also revealed is that the training ground costs of £65m excludes equipment inside of £18m so the total cost of the training facility is £ 83m. ........and adding the player lodge it's £125m invested there, much more than previously thought.

There were also assets under construction of £ £2m. At the training ground plus any current year spend to complete this project to add I !
 
Reposting from the ENIC thread...
I always thought that one billion budget was to cover the hotels and apartments as well as the training lodge and Lilywhite House. So the actual land purchase and building works of the stadium by itself is somewhere between (wild guess) £600m - £800m.
And is it "estimated valuation" or actual cash spend?

Accounts show total spend, including land, build costs, equipment, architect and other professional fees plus capitalised interest fees paid to June 2018 on the stadium alone was about £ 710m.....and of course there was about 9 months build costs after that date.

Figures might change a bit due to later re- allocations of cost but certainly working out more expensive than first thought
 
Worth recalling that the accounts show these match day revenues result from an average crowd of 68,500 per match and I would guess we will be lucky to average more than say 15% below this average at NWHL.. Better corporate facilities at NWHL will mean revenues from that will counteract the lower GA number but I think your £50m extra match day revenue might be optimistic even with a stadium naming rights deal (and that will be for 2019/20 accounts not the current year to June 2019 where due to dropping match day crowds this year match day revenues may drop).

Imo there will be more small scale events held at NWHL and these plus the 16 non footballing events will add revenues but £50m might be optimistic - the 16 events by themselves will not average £ 3m each which would be required to get that to £ 50m. But really difficult to forecast atm
Projections for NWHL matchday is £100m (£30m+ more compared to Wembley) + £20m for stadium naming rights, so its just a rough guess. But to your point, its all difficult to forecast. I think on the low end in 2019/20, we are looking at revenue similar to Liverpool, which is pretty remarkable considering where we were a few short years ago.
 

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It's worth summarising the bank loan position. :

1. The Invesec loan to fund the training ground was extended to be £25m facility which was fully drawn down but after repayments £21m was outstanding at the year end.

The loan is repayable in 2022 but is likely to be re financed together with the loans to fund stadium build

So the majority of the training ground facilities have been funded out of Spurs own cash ( possibly within the player lodge being funded by the stadium loans - it's not clear)

2. A loan facility totalling £ 537m was entered into with 4 banks of which £ 445m. Had been spent by June 18.

In October the loan facility was increased by £100m - as the accounts were signed later that month there may be other loan increases agreed but not yet disclosed.

3. There was also a loan facility of £50m from an ENIC company, but that seems to not be drawn - possibly a contingency funding

So assets at the year end of £ 1 bn have been funded at the year end by about £ 470m of borrowing ( the figures probably need adjusting for the £ 100m in cash held at the year end and the £100m of trade creditors at the year end, but there is not enough information to be accurate) showing that a big chunk of the stadium and training ground facilities have already been paid off over the last 5 or 19 years.

We are in pretty good shape !

We have almost certainly avoided the problems Woolwich got themselves into when they built their stadium !
 
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