glasgowspur
Colin Calderwood
Maddison is so easy to play aga, every pass is to son
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Financial Results
- Thread starter Jordinho
- Start date
Bullet
Chris Jones
Wrong thread fella
Finney Is Back
Colin Calderwood
The ‘average’ maturity is long dated but there are lots of tranches. £50m PA is a considerable amount of interest to pay. The 10% increase year on year since 2021 is also worrying.
Finney Is Back
Colin Calderwood
Tends to be a red flag for me when I speak to a company who are relying on inflation to take care of considerable debt, especially when the credit environment has moved against them and their interest payments are going up year on year.
Bedfordspurs
Joe Kinnear
ricky2tricky4city
Nayim
They're not relying on inflation...as they don't control that. It's an advantageous side effect (when indebted) if it does occur (and has indeed been occuring) ...it's certainly not part of their debt model, don't be silly.
What we do know is they've laid out what their debt model is, and the majority of it is fixed in at rates that are immune to current credit market fluctuations due to their long dated bullet payments.
If you want to moan about the way the financing of the stadium has been handled...you'll moan about anything that DL does (which you do tbf
)
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metalgear
Andy Thompson
Bedfordspurs
Joe Kinnear
Yep
The fan base think we should pay more despite knowing the players aren’t good enough to merit getting paid more
Glenda's Legs
Cecil Poynton
I think it’s more that if we paid higher wages we could attract a better level of player. Not necessarily taking in to account that this might (but not necessarily always) mean a higher transfer fee and more in agent fees.
We do clearly have more than a little wriggle room here however.
Finney Is Back
Colin Calderwood
I'm not moaning about the way the financing of the stadium has been handled. Show me where I have moaned about this?They're not relying on inflation...as they don't control that. It's an advantageous side effect (when indebted) if it does occur (and has indeed been occuring) ...it's certainly not part of their debt model, don't be silly.
What we do know is they've laid out what their debt model is, and the majority of it is fixed in at rates that are immune to current credit market fluctuations due to their long dated bullet payments.
If you want to moan about the way the financing of the stadium has been handled...you'll moan about anything that DL does (which you do tbf
I'm worried that our debt is going up, our cash is going down and our interest payments are now considerable and going up 10% a year.
If you're not worried by that then that's your prerogative.
DeanoAustin
Paul Walsh
I've given him stick for it but Simon Jordan raised an interesting point earlier in the week. He did say that the bank may well be insisting that wages to turnover has to be kept below a certain threshold as part of the loan agreement. Maybe that's Jordan speculating or maybe he knows something as he's relatively pally with Levy but it wasn't something I'd considered in those terms.
ricky2tricky4city
Nayim
Apologies you're not moaning. Not in that post anyway
Our debt position is outlined in Note 16 of the accounts.
Outside the majority of our debt on long dated bonds we have £81m at about 1.5%+ SONIA so running at about 6%...I'm guessing there has been an interest burden uptick in that over the last 4years?
(But that is the limit of our variable interest exposure)
Two other reasons the interest cost have gone up...1 the obvious one is we borrowed another 250m to get over the COVID hump. 2. We are nearly 100m lighter in cash...which I guess would have netted off 4-5m in interest earned against paid out. (and I even think we were holding £250m in cash the year before).
And I guess that cash balance has gone down fulfilling 1.0 of fans desires ...transfer spend?
The macro picture, given your worries, is how do we fulfil fans desires 2.0 (which now appear to have moved onto 'spend more on wages) when the club lives solely on the revenue streams its generated?
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Yiddo
Tom Huddlestone
The same fans that moan that professional footballs shouldn’t be paid as much as they earn.
glasgowspur
Colin Calderwood
Interesting that Swiss ramble calls our ratio the best in the league.
Not the lowest, not meanest, but the best.
ricky2tricky4city
Nayim
As Ive outlined above....
as a single figure it highlights a problem if attached to success (although many 'successful' clubs are running in the 50-60% bracket)
BUT if you want to run at a higher rate (it's a reasonable argument that we are at a low point in a young squad wage cycle) you have to look at it in conjunction with other figures to calculate where that extra money will come from. And if it is indeed possible, given the model we run.
I don't have an answer btw.
Bedfordspurs
Joe Kinnear
Who would have thought it
Bedfordspurs
Joe Kinnear
We have wriggle room under the rules but maybe not in the cash … the figures don’t look great
But who should we be paying more to?
We’re attracting the level of players that we can attract IMO
We aren’t currently a team that top players what to join even if we offered them silly money
Barca are suffering because even a club of that scale had to do that and it’s biting them now
The problem is we are buying solankes instead of isaks. Maddison instead of wirtz. Richarlison instead of kvartshelia. Johnson instead of szoboszlai.
We are the 9th richest team in europe yet we buy good players rather than great ones. Those players snd others were gettable. Everyone knew how good they were. But we didn't.
Bishop
Jimmy Neighbour
That's not really accurate. The fan base want to attract better players who tend to cost more in terms of wages. The complaints are not that we should be playing the likes of Johnson more.
Finney Is Back
Colin Calderwood
Show me any post where I have moaned about the way the stadium was financed. I haven't done it because I thought we financed the stadium really well, especially considering the considerable overspend.Apologies you're not moaning. Not in that post anyway
Our debt position is outlined in Note 16 of the accounts.
Outside the majority of our debt on long dated bonds we have £81m at about 1.5%+ SONIA so running at about 6%...I'm guessing there has been an interest burden uptick in that over the last 4years?
(But that is the limit of our variable interest exposure)
Two other reasons the interest cost have gone up...1 the obvious one is we borrowed another 250m to get over the COVID hump. 2. We are nearly 100m lighter in cash...which I guess would have netted off 4-5m in interest earned against paid out. (and I even think we were holding £250m in cash the year before).
And I guess that cash balance has gone down fulfilling 1.0 of fans desires ...transfer spend?
The macro picture, given your worries, is how do we fulfil fans desires 2.0 (which now appear to have moved onto 'spend more on wages) when the club lives solely on the revenue streams its generated?
We have definitely missed a trick (and perhaps missed the boat) with not agreeing stadium sponsorship however. We could've achieved around £90m from that in the period between the stadium being ready and now. That is a nice chunk of the debt paid off.
The interest on the net debt is extremely worrying: £50m net interest on net debt of £793m works out as an overall rate of 6.3%
Strange when the headline figures they quote for interest seem to be so good. I wonder whether they're only announcing the headline interest rate figure when quoting the debt and not quoting set up fees that are getting included in the net interest number? The numbers indicate that there is definitely something not being called out.
To answer your final question, I think it will be very difficult to do now. We're not cemented as a Champions League club and (IMO) unlikely to do better than around 1 in 3 or 4 seasons in which we qualify for it in the near future. Obviously stadium sponsorship is a decent way to bring in more revenue, though I doubt we can now get the £15m or so a year that was available to us when we were flying high under Pochettino and looking as though we'd cement a position as a proper European heavyweight.
I suspect Lewis is probably looking for somebody to buy him out and take over Spurs and that person may inject capital to clear (or at least cover a good portion of) the debt. That is also the only reason I see why we didn't sell naming rights, I think maybe it has been kept as a carrot for a new owner (and a potential way for a new owner to pump up our turnover to gain an PSR advantage).
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