The "Mighty Juggernaut" thread

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Tobes said:
Spurs net spend in the last 5 years has been virtually zip.

Personally I don’t see how they could suddenly dramatically increase their player spending at the same time as paying down the stadium debt in the timeframe being suggested.
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We can start to answer that by you stating what the
starting debt + end dates + repayment interest will be.
 
Tobes said:
That’s a fallacy though. United make nothing from increasing shirt sales as they’ve effectively sold the rights for an upfront annual fee. That’s largely standard in the industry.
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The specific point looks incorrect but the general thesis holds.
 
PowerSpurs said:
I don't think you are right. The stadium generates cash immediately as far as I can see. The debt is 400m and The interest is only about 15m per annum. The remainder of the 850m was paid from the club's own resources.
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I’m not sure where you’re getting your figures from or where you think Spurs suddenly found £450m from either.

Sounds like you’re just having a stab in the dark to be honest.
 
PISKIE said:
I’m not sure where you’re getting your figures from or where you think Spurs suddenly found £450m from either.

Sounds like you’re just having a stab in the dark to be honest.
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The debt facility of 400m is in the annual accounts from last year of which 150m had been drawn. At that point about 250m had been spent. They had about 200m cash including the drawdown on the debt and 50m in guarantees from ENIC. So that's enough cash to cover 750m. I would expect our cash flow to be above 100m this year as Wembley had big crowds and we had low net spend on transfers.
 
Guess we'll find out this summer on how many players leave/how many are bought in.

I'm guessing Levy will do his special of waiting til the last moments of the window in picking up players as that is when you will get them at their cheapest (theoretically unless you secure them very early on).

Not necessarily the worse tactic as you can still pick gems up with low spending but it does mean it's not generally the more favoured players being targetted.
 
PowerSpurs said:
The debt facility of 400m is in the annual accounts from last year of which 150m had been drawn. At that point about 250m had been spent. They had about 200m cash including the drawdown on the debt and 50m in guarantees from ENIC. So that's enough cash to cover 750m. I would expect our cash flow to be above 100m this year as Wembley had big crowds and we had low net spend on transfers.
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Well that isn’t spurs paying off £450m as you said. You’ve just described the debt structure.

I think you’re being extremely optimistic at best and deluded at worst if you think this debt isn’t going to affect the playing side of the club.
 
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PISKIE said:
Well that isn’t spurs paying off £450m as you said. You’ve just described the debt structure.

I think you’re being extremely optimistic at best and deluded at worst if you think this debt isn’t going to affect the playing side of the club.
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The arithmetic isnt hard. If the stadium costs 850m and the debt is 400m then the Club must have funded the rest.
The debt costs less than 15m in interest and the new stadium makes around 80m a year more revenue including naming rights and non football events. So there is 65m to go towards repaying the debt and building the team. So even if we stick to a five year pay back we are only 15m a year worse off than now. If we went to a 20 year pay back we'd have 45m a year more to spend on the team.
 
PowerSpurs said:
The arithmetic isnt hard. If the stadium costs 850m and the debt is 400m then the Club must have funded the rest.
The debt costs less than 15m in interest and the new stadium makes around 80m a year more revenue including naming rights and non football events. So there is 65m to go towards repaying the debt and building the team. So even if we stick to a five year pay back we are only 15m a year worse off than now. If we went to a 20 year pay back we'd have 45m a year more to spend on the team.
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there you have it.

15m a year worse off every year.

That's before we even talk about where the 450m was paid off from before (presumably you're lack of net spend of recently years).

It's a necessity to compete at a financial level in the future but even on your optimistic estimates of 50m on naming rights and other sporting events you are making a 15m loss to repay back over 5 years.
 
PowerSpurs said:
The arithmetic isnt hard. If the stadium costs 850m and the debt is 400m then the Club must have funded the rest.
The debt costs less than 15m in interest and the new stadium makes around 80m a year more revenue including naming rights and non football events. So there is 65m to go towards repaying the debt and building the team. So even if we stick to a five year pay back we are only 15m a year worse off than now. If we went to a 20 year pay back we'd have 45m a year more to spend on the team.
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The debt according to the last filed accounts you mean...

How do you know they haven’t increased the borrowing in the current financial year?
 
PowerSpurs said:
The arithmetic isnt hard. If the stadium costs 850m and the debt is 400m then the Club must have funded the rest.
The debt costs less than 15m in interest and the new stadium makes around 80m a year more revenue including naming rights and non football events. So there is 65m to go towards repaying the debt and building the team. So even if we stick to a five year pay back we are only 15m a year worse off than now. If we went to a 20 year pay back we'd have 45m a year more to spend on the team.
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Or the debt was £400m based on the initial project costs and the next financial year will show a black hole of £450m where the build costs have more than doubled
 
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The Hurra will lead our boys out in Russian as captain.

Well done, Harry.

You’ve done Spurs and your country proud.
 
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