Tottenham Hotspur - Financials

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102m Euros so far - decent amount but in today's market only enough to buy 2 players, but not pay wages !

My guess however is that the exposure Spurs will get from the CL final appearance will add zillions to that amount (and maybe get that bid Stadium Naming Rights deal over the line) plus a few younger hungry players out there might be thinking they'd like to join that 'up and coming side' rather than some of the more established sides such as Real Madrid, Barcelona, Juventus, Manchester United etc, providing of course the wages are ok.

So its all good.

And did I mention that with the extra UEFA Coefficient points our 5 year average is now the same as ManU ?
 
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102m Euros so far - decent amount but in today's market only enough to buy 2 players, but not pay wages !

My guess however is that the exposure Spurs will get from the CL final appearance will add zillions to that amount (and maybe get that bid Stadium Naming Rights deal over the line) plus a few younger hungry players out there might be thinking they'd like to join that 'up and coming side' rather than some of the more established sides such as Real Madrid, Barcelona, Juventus, Manchester United etc, providing of course the wages are ok.

So its all good.

And did I mention that with the extra UEFA Coefficient points our 5 year average is now the same as ManU ?
 

102m Euros so far - decent amount but in today's market only enough to buy 2 players, but not pay wages !

My guess however is that the exposure Spurs will get from the CL final appearance will add zillions to that amount (and maybe get that bid Stadium Naming Rights deal over the line) plus a few younger hungry players out there might be thinking they'd like to join that 'up and coming side' rather than some of the more established sides such as Real Madrid, Barcelona, Juventus, Manchester United etc, providing of course the wages are ok.

So its all good.

And did I mention that with the extra UEFA Coefficient points our 5 year average is now the same as ManU ?
And as we are 18th on the list. Man united not in it next season makes us 17. If Chelsea win europa league Woolwich will dip out as well and we will be 16th so guaranteed a place in pot two at least. Of course if we win champ lge we are in pot 1.

102m Euros so far - decent amount but in today's market only enough to buy 2 players, but not pay wages !

My guess however is that the exposure Spurs will get from the CL final appearance will add zillions to that amount (and maybe get that bid Stadium Naming Rights deal over the line) plus a few younger hungry players out there might be thinking they'd like to join that 'up and coming side' rather than some of the more established sides such as Real Madrid, Barcelona, Juventus, Manchester United etc, providing of course the wages are ok.

So its all good.

And did I mention that with the extra UEFA Coefficient points our 5 year average is now the same as ManU ?
 
And as we are 18th on the list. Man united not in it next season makes us 17. If Chelsea win europa league Woolwich will dip out as well and we will be 16th so guaranteed a place in pot two at least. Of course if we win champ lge we are in pot 1.
Agreed, very likely we will be in Pot 2, if not Pot 1 (obviously a dream if that happens).

I think one or two of the other clubs above us may also fail to qualify for CL and therefore we will almost certainly be in Pot 2 - but I was going to wait until all the European leagues had ended before ascertaining our precise position.
 
What's our ten year average now, assuming either a win or loss in the final? It's ten years average that matters for the CL seeding, right?
No, the 5 year coefficient determines seeding, the 10 year coefficient determines how one of the pots of money are split, and there we still have low numbers as 'arry was never concerned about Europa League. Still if we do a few runs in CL like this year we will shoot up the 10 year coefficient too as the oldest years diminish in importance - incidentally we do still get a small increase in the '10 year coefficient' from our European exploits in the 60's, 70's and 80's !

So the 10 year coefficient isn't totally an accurate description !
 
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No, the 5 year coefficient determines seeding, the 10 year coefficient determines how one of the pots of money are split, and there we still have low numbers as 'arry was never concerned about Europa League. Still if we do a few runs in CL like this year we will shoot up the 10 year coefficient too as the oldest years diminish in importance - incidentally we do still get a small increase in the '10 year coefficient' from our European exploits in the 60's, 70's and 80's !

So the 10 year coefficient isn't totally an accurate description
Thanks, I didn't realise some of that, good to know!
It's so much money anyway that I'm not too sore about getting less than would be fair. We'll get more in time as you point out through our current success.
 
Thanks, I didn't realise some of that, good to know!
It's so much money anyway that I'm not too sore about getting less than would be fair. We'll get more in time as you point out through our current success.
Just to give you an idea of how the '10 year coefficient' pot of money is distributed, Swiss Ramble's 2nd graph below gives the split.

This season our 10 year coeffient has us in 25th position, although I would guess that this years run will put us up to around 20th next season, or even maybe as high as 17th (Liverpool are 15th this year but will go up the list next year with this seasons CL run) with a decent increase in the revenue share.

BTW it might take a few years to overtake Woolwich (9th position) simply because without achieving anything they got past group stages in most years and consequently have a healthy coefficient - a classic illustration of this coefficient simply rewarding 'the old guard' from being in it even if they did nothing spectacular.
 
Worth summarising where we are post the CL final, putting a few financials in comparison with other PL clubs.

1. TV from PL and Europe

Spurs

PL. 145
CL. 90
total. £ 235m. ( £36m more than last season)

Other Clubs total TV money :
Liverpool. 251m
Mancity. 233m
Manu. 226m
Chelsea 185m. ( Shows difference between CL and EL)
Woolwich. 174m
Everton. 129m. ( Shows why Europe is so important)

So Spurs have the same level (finally ) as Liverpool ManCity and Manu of TV money...and ahead of Chelsea and Woolwich.

And £100m or more above clubs not in Europe !

Next season hopefully Manu and Chelsea will swap round whilst we continue to be in top 4 TV revenue earners.

2. Effect of UEFA coefficient on TV Revenues

Included in TV revenues is a pot of money divided between CL clubs based upon the 10 year UEFA coefficient. The TV revenues above include the following amounts ( in euros)

Manu. (5th position) 31m
Mancity (14th). 24.4m
Liverpool (15th). 23.3 m
Spurs (25th). 15.5m

So we have some way to catch up. Next season if we have a decent CL run to say quarter finals or beyond we will get into the state 15th to 20th type position do start to catch up with the other top clubs. But as it's a 10 year coefficient we'll need a few seasons of good performances to get into too 10 Uefa coefficient (10 year) which is solely used to divi up t. Revenues ( the 5 yesr one determined which pot we end in)

All figures courtesy of the Swiss ramble
 
Refinancing the debt taken out to build the stadium. With the stadium now holding games and starting to generate healthy revenue streams, the new debt is (as expected) carrying a much lower interest rate - and with average repayment date of 23 years (some debt only repayable after 30 years) gives the club a lot of financial flexibility, which of course allows easier funding for investment in the squad.


The Club today (Friday 20 September) closed its refinancing of the loans put in place to support the construction of our new stadium.

• The Club has completed a £637m multi tranche, long term financing anchored by a Private Placement and new bank facilities.
• A first time issuer in the US Private Placement market, the Club raised £525m of finance and was significantly oversubscribed and supported by several highly established international institutional investors.
• The refinancing successfully extends the longest debt maturities to 30 years.
• The average maturity of the total debt package of £637m is 23 years and the weighted average coupon, including the new bank facilities, is 2.66%.
• Bank of America Merrill Lynch acted as the Lead Placement Agent and Sole Bookrunner, with HSBC serving as a Co Placement Agent for the Private Placement.
• Bank of America Merrill Lynch provided a £112m term loan to complete the refinancing, with HSBC providing an additional revolving facility.
• As part of the financing the Club obtained a strong investment grade credit rating from two agencies.

The Club's strong profile globally realised extensive support and oversubscription from a range of leading Private Placement investors actively supporting the sports sector.

The success of the refinancing demonstrates the confidence held by the market in the Club's overall strategy including:

• The strong year-on-year financial performances of the Club, one of only three English Premier League (EPL) teams to have been consistently profitable since the inception of the Premier League.
• Strong performances in the EPL and Union of European Football Associations (UEFA), having qualified for European competitions in 13 of the last 14 seasons and making the Champions League Final in 2019.
• Delivery of the new Tottenham Hotspur Stadium, one of the world's best multi-use stadiums, which includes Europe's only purpose-built National Football League (NFL) venue.
• World class training facilities to support the first team and ongoing youth development.

The proceeds from the issue will be used to repay the short-term bank debt which was raised during the construction phase of the stadium from Bank of America Merrill Lynch (BofAML), Goldman Sachs and HSBC Bank plc (HSBC).

The refinancing has successfully repositioned the Club's balance sheet by extending the debt maturities with the longest maturities out to 30 years, lowering and fixing financing costs, positively impacting annual cash flow and adding financial flexibility for years to come. The average maturity of the total debt package of £637m is 23 years and the weighted average coupon, including the bank facilities is 2.66%.

The Club were advised on the financing by Rothschild & Co.

Daniel Levy, Club Chairman, said: "We have continued to develop Tottenham Hotspur in line with prudent financial management and investment into the Club's key infrastructure and our fast-growing global brand, successfully matching long-term assets with long-term financing. It is a tribute to the team on and off the pitch that we have achieved what is considered to be one of the most attractive financing deals in the world of sport. Our Club is extremely well positioned as we move forward delivering the excitement and entertainment of Premier League and Champions League football, NFL, rugby, concerts and much more."

Commenting, Elliott McCabe, Managing Director in Bank of America Merrill Lynch's Sports Finance & Advisory Group, said: "The management team of THFC continue to position the Club for long term success by growing the brand through ongoing investment, particularly in relation to the iconic new stadium. This is reflected in the strong market reception met by Tottenham Hotspur as a first-time issuer in the Private Placement market."

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Some of the background info used to market the bonds to the financial community makes interesting reading in highlighting Spurs links into US market for example (click on attachment to get details of a streaming service in US and other info) :

 
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And we still have stadium sponsorship to come, not forgetting sleeve sponsorship.
I will be most surprised if the naming right go anywhere else but the USA.
If Daniel knows about anything it’s money. We are in good hands despite some criticism from those who know no better.
 

Stopspot

Now I'm a big fat dynamo!
And we still have stadium sponsorship to come, not forgetting sleeve sponsorship.
I will be most surprised if the naming right go anywhere else but the USA.
If Daniel knows about anything it’s money. We are in good hands despite some criticism from those who know no better.
America or Asia for the naming rights me thinks.
 

BangkokSpud

Supporter
A coupon rate including fees of 2.66% is incredibly good, would guess the uptake will be massively over subscribed to get a rate that low. All good news for our long term future ...

By comparison Woolwich's two bonds had effective interest rates of 5.14% and 5.97% ....
 
A coupon rate including fees of 2.66% is incredibly good, would guess the uptake will be massively over subscribed to get a rate that low. All good news for our long term future ...

By comparison Woolwich's two bonds had effective interest rates of 5.14% and 5.97% ....
On the over subscription point I read in the financial press that initially (back in August) Spurs were looking to raise just £400m to partly pay off the debt, so to get that amount of bonds up to £637m and that effective interest rate really underlines the level of interest shown in the issue.

Also read the repayment dates are 15, 20, 25 and 30 years. That spread of dates gives us a huge amount of financial flexibility, and I guess within that we could repay (buy back) some bonds early.

But that gives us around £15m pa to pay in interest, and we should put aside £25m pa in capital for n average. But unless there's any requirements in the bond documents, I'd guess we might spend more on players in the short term before considering either buying back some of the bonds or putting money aside to accumulate until we need (or choose) to repay the bonds.
 
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On the over subscription point I read in the financial press that initially (back in August) Spurs were looking to raise just £400m to partly pay off the debt, so to get that amount of bonds up to £637m and that effective interest rate really underlines the level of interest shown in the issue.

Also read the repayment dates are 15, 20, 25 and 30 years. That spread of dates gives us a huge amount of financial flexibility, and I guess within that we could repay (buy back) some bonds early.

But that gives us around £15m pa to pay in interest, and we should put aside £25m pa in capital for n average. But unless there's any requirements in the bond documents, I'd guess we might spend more on players in the short term before considering either buying back some of the bonds or putting money aside to accumulate until we need (or choose) to repay the bonds.
Sounds about right. 40m a year total outlay. You get a stadium sponsor for 20m a year. Then that nets off to 20m a year outlay for the stadium. On increaed revenues of 450m a year. 20m is sod all.

And people say Levy is holding us back!!
 
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