Tottenham Hotspur - Financials

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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.

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 !
Agreed. People comparing this stadium build to Woolwich's are missing more than a few key details. Its a completely different scenario for a number of different reasons.
 

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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.
We are definitely catching up with Woolwich Chelsea and Liverpool. Will need to wait until the year ended June 2020 accounts come out ( sadly 2 years time) to be sure though as they will be the first with one full year of NWHL revenues
 
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
It's really hard to say. The buzz around the new stadium will draw many more people to grade B & C games for a few more seasons, plus the corporate levels will make use far more money as you've highlighted.

I'm not sure what the breakdown in how much it cost to rent Wembley was but it was rumoured to be anything from £1m per game to £2.5m per game so instantly the club add anything from £20m-£50m on top not based on profits but savings.

Season tickets are more expensive than they were 2017-2018 season, plus we have so much more money that can be made from food & drink it seems. Whenever I went to Wembley I hardly ever saw people hanging around for a swift couple afterwards. That Market Place, especially when it's a 3pm Kick off could be an instant money maker for not just our game but a 12:30pm kick off and 5:30pm kick off game being shown on the screens as well.

Stadium tours at £30 a pop will make lord knows how much money, + we can expect far more sponsorship partners wanting a piece of us with our association to the new stadium giving us a far greater brand.

Tunnel clubs, Michelin star restaurants, extreme sports, long term the hotel and real estate/ property will all add to it, plus the huge opportunities we have for those other 16 events.

We could be, in theory getting 1 million non Spurs fans extra through the doors each year. Not only does this instantly maximise it's potential but it also gives us a great opportunity to attract new supporters who initially weren't as interested in Tottenham Hotspur. eGaming, extreme sports, concerts, rugby, NFL, the potential for a brand new NFL franchise or an existing one to ground share with us in the future as well as what this could mean for stadium naming rights gives us not just a football stadium, but a facility that gets exposure across multiple facets that all in all add to the growing reputation of Spurs.

It wouldn't surprise me to see our social media following over the next 2-3 years on platforms like Twitter double from its 3.3m at present. My only qualm is that long term physically it's impossible to increase capacity but that's just me being greedy.

All in all this new build offers huge revenue potential across not just the game experience but pre match, post match, dwell time, fan base numbers, marketing, branding, market penetration, new markets, brand expansion, future partnerships it's got so many angles now.

It's got huge potential and we all know our Daniel doesn't miss a trick
 
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.

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 !
So, what's the debt at the moment?
 
It's really hard to say. The buzz around the new stadium will draw many more people to grade B & C games for a few more seasons, plus the corporate levels will make use far more money as you've highlighted.

I'm not sure what the breakdown in how much it cost to rent Wembley was but it was rumoured to be anything from £1m per game to £2.5m per game so instantly the club add anything from £20m-£50m on top not based on profits but savings.

Season tickets are more expensive than they were 2017-2018 season, plus we have so much more money that can be made from food & drink it seems. Whenever I went to Wembley I hardly ever saw people hanging around for a swift couple afterwards. That Market Place, especially when it's a 3pm Kick off could be an instant money maker for not just our game but a 12:30pm kick off and 5:30pm kick off game being shown on the screens as well.

Stadium tours at £30 a pop will make lord knows how much money, + we can expect far more sponsorship partners wanting a piece of us with our association to the new stadium giving us a far greater brand.

Tunnel clubs, Michelin star restaurants, extreme sports, long term the hotel and real estate/ property will all add to it, plus the huge opportunities we have for those other 16 events.

We could be, in theory getting 1 million non Spurs fans extra through the doors each year. Not only does this instantly maximise it's potential but it also gives us a great opportunity to attract new supporters who initially weren't as interested in Tottenham Hotspur. eGaming, extreme sports, concerts, rugby, NFL, the potential for a brand new NFL franchise or an existing one to ground share with us in the future as well as what this could mean for stadium naming rights gives us not just a football stadium, but a facility that gets exposure across multiple facets that all in all add to the growing reputation of Spurs.

It wouldn't surprise me to see our social media following over the next 2-3 years on platforms like Twitter double from its 3.3m at present. My only qualm is that long term physically it's impossible to increase capacity but that's just me being greedy.

All in all this new build offers huge revenue potential across not just the game experience but pre match, post match, dwell time, fan base numbers, marketing, branding, market penetration, new markets, brand expansion, future partnerships it's got so many angles now.

It's got huge potential and we all know our Daniel doesn't miss a trick
On costs, there is a comment that operating costs (other than wages) were the same as the previous year, which I found to be a surprise.

Basically means the Wembley rent was not too different from the costs of operating WHL (assuming other costs were also equal in both years).

So don't expect a big cost saving versus 2017/18 - although hiring on a match by match basis this season may be more expensive.

Certainly more food and drink sales - but if we assume (for ease) an average of 60,000 crowd per match and £15/head spend for 25 home matches that's £22.5m - so if we were taking £10m before its an extra £12.5m revenue. Nice but not life changing by itself.

Lots of other revenue opportunities , so difficult to estimate, but I think the big money will be from multiple sponsorships from companies wanting to be associated with the new stadium, especially if we get more 'possibly best stadium in the world' type press.

My guess is that revenues will increase over the next few years (starting from now when we are in the stadium not 2018/19) from various sponsorship/marketing deals, new users of the stadium (the 2 NFL matches and Saracens being the first ones) and merchandising increasing from new supporters attracted by the stadium and Spurs increasing status etc.

Good times to be a Spurs fan !
 
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#THFC have done very well to compete at the highest level against teams that spend much more on transfers and wages, while their focus has been on building a new stadium (and training ground). Whether they can continue to manage this tricky balancing act is the big question.
 

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