[ad_1]
<div _ngcontent-c14 = "" innerhtml = "
Tottenham Hotspur Stadium. (Photo by Mike Hewitt / Getty Images)
Getty
It was a great week for Tottenham Hotspur.
the club reported turnover and record profit for the year ended June 30, 2018.
Finally, the new state-of-the-art Tottenham Hotspur Stadium hosted a Premier League match. It was also a winning start, the Spurs beating Crystal Palace 2-0 in front of a full house. The victory meant that the Spurs came back in 3rd place in the Premier League.
Arsenal stumbled Sunday on a defeat away against Everton. The Gunners have not managed to double the Spurs in the Premier League.
Through these three good news, there is a common thread and this thread is the question: how will the Spurs cover the cost of the new stadium?
Let's start with some of the highlights of a very impressive set of financial statements for 2017-2018. Some information was published by the Spurs in late 2018, but we now have all the details.
Millions of dollars with a conversion of 1.3 US dollar
- Record revenue for the club of £ 380.6 ($ 495); an increase of 23% over 2017 & 310;
- Operating expenses & book; 228.7 ($ 297.3); 2017 was & pound; 228.3
- Personnel costs (included in operating expenses) 147.6 ($ 191.9), up from $ 126.9 in the previous year
- Ratio of personnel costs to revenues 38.8%; 2017 41%
- Operating profit of £ 162.5 ($ 211.25); 2017 & pound; 120.9
- Profit after tax & 113; ($ 146.9); 2017 & pound; 36.2
- Amortization of player contracts 68 ($ 88.4); 2017 & book; 48.4
- Profit on the sale of players & £ 73.1 ($ 95); 2017 & 40;
- Net debt (cash less bank loans) 365,365.7 ($ 475); 2017 surplus of £ 14.6
At a conference call held last October, the Spurs & # 39; warned that the additional financial costs badociated with maintaining a residence at Wembley for much of the season would affect the financial statements 2019, as well as other costs incurred by the delay in moving to the new one. Stadium.
However, the challenges beyond 2019 will be even greater.
Up to and including 2018, interest expense attributable to the new stadium was capitalized, that is, they were converted into an badet instead of being charged as cost in the profit and loss account of each year.
In 2018, the Spurs capitalized nearly £ 12 million ($ 15.6 million) in interest expense due to the new development.
Once the Spurs have taken possession of the new stadium, the cost of interest on these loans will reach the income statement. For 2019, it will only be a partial cost for a year, but by 2020, it will be a hit for the whole year.
So how many are we talking about?
In the year-end financial statements, more than £ 602 million was attributable to the new stadium out of a total of £ 790 million clbadified as "badets under construction". & nbsp; We also know that at the end of 2018, the borrowing limit under agreements with Bank of America, Merrill Lynch, Goldman Sachs and HSBC was extended to $ 637 million ($ 828 million).
Spurs President Daniel Levy recently said the cost of new developments would be closer to $ 1 billion ($ 1.3 billion). The total cost of borrowing, the interest rate and the return on investment period will depend on the reduction of interest costs. The strategy of the Spurs is to divide the total loans into tranches that will expire I do not know how long the amortization will be.
None of the figures have been published by the Spurs, but we can come up with a decent estimate. For the sake of argument, suppose the loan will total $ 850 million (probably on the low side), repayable at an average rate of 4.5% over 25 years.
Under the badumed conditions, the annual cost, in interest and principal, would be approximately 57 million pounds sterling ($ 74 million). In the early years, a significant portion of the payments will consist of interest expense – approximately £ 36 million per annum – and will be paid into the P & L account;
The capital must be repaid and must come from the net profit realized by the club. Depreciation of part of the new badet will also have to be provisioned.
How our new house was built.
#SpursNewStadium ⚪️ #COYS pic.twitter.com/vzNZD1u5um– Tottenham Hotspur (@SpursOfficial) March 22, 2019
Match revenue for the 2017/18 season has risen from £ 45.3 to £ 71 million after the season's move to Wembley and Spurs, which is expected to increase again after moving to the new stadium.
The increase in sponsorship revenue and ancillary revenue is expected to increase receipts from box office receipts.
However, there are two important risks for Spurs. The first is that the team must continue to qualify for the Champions League. In 2018, the Spurs received more than 53 million pounds ($ 69 million) from UEFA. They would be among the top four and should be content with the Europa League, which would lead to a substantial reduction in UEFA's payments.
The other risk comes from Daniel Levy's legendary parsimonious financial management. In simple terms, the relative success of Spurs in recent seasons has been achieved at a lower cost and at a non-unsustainable cost.
The Spurs payroll for 2017/18 was £ 147.6m ($ 192m), which was by far the lowest of the six best teams – Arsenal was the closest, just over £ 220m ($ 286m), Liverpool and Manchester City rising by 20% still and Manchester United topping the list to nearly £ 300m ($ 390m).
Spurs players who earn far below their market value will surely wake up and ask for more. How long can the Spurs Dreamland continue?
On Tuesday, the Spurs will play at home against Manchester City in the first leg of the quarter-final round of the UEFA Champions League. The return match will take place on 17 April in Manchester and three days later, the same teams will face the same place in the Premier League.
">
Tottenham Hotspur Stadium. (Photo by Mike Hewitt / Getty Images)
Getty
It was a great week for Tottenham Hotspur.
The club recorded record revenues and profits for the fiscal year ended June 30, 2018.
Finally, the new state-of-the-art Tottenham Hotspur Stadium hosted a Premier League match. It was also a winning start, the Spurs beating Crystal Palace 2-0 in front of a full house. The victory meant that the Spurs came back in 3rd place in the Premier League.
To top it off, Arsenal fell into a defeat away against Everton on Sunday and the Gunners failed to double the Spurs in the Premier League.
Through these three good news, there is a common thread and this thread is the question: how will the Spurs cover the cost of the new stadium?
Let's start with some of the highlights of a very impressive set of financial statements for 2017-2018. Some of the information was published by the Spurs at the end of 2018, but we now have all the details.
In millions of pounds sterling with a conversion of 1.3 US dollars
- Club record income of £ 380.6 ($ 495); an increase of 23% over the £ 310
- Operating expenses of £ 228.7 ($ 297.3); 2017 was £ 228.3
- Personnel costs (included in operating expenses) £ 147.6 ($ 191.9) compared to £ 126.9 the previous year
- Ratio of personnel costs to revenues 38.8%; 2017 41%
- Operating profit of £ 162.5 ($ 211.25); 2017 £ 120.9
- Profit after tax £ 113 ($ 146.9); 2017 £ 36.2
- Amortization of player contracts: £ 68 ($ 88.4); 2017 £ 48.4
- Profit on the sale of players £ 73.1 ($ 95); 2017 £ 40
- Net debt (cash less bank loans) £ 365.7 ($ 475); 2017 Surplus of £ 14.6
At a conference call last October, the Spurs & # 39; warned that the financial costs of maintaining a residence at Wembley for much of the season would affect the 2019 financial statements as well as other costs incurred by the delay in moving to the new stadium. .
However, the challenges beyond 2019 will be even greater.
Up to and including 2018, interest expense attributable to the new stadium was capitalized, that is, they were converted into an badet instead of being charged as cost in the profit and loss account of each year.
In 2018, the Spurs capitalized nearly £ 12m ($ 15.6m) in interest expense attributable to the new development.
Once the Spurs have taken possession of the new stadium, the cost of interest on such loans will reach the profit and loss account. For 2019, it will only be a partial cost for a year, but by 2020, it will be a hit for the whole year.
So how many are we talking about?
In the year-end financial statements, more than £ 602m was attributable to the new stadium out of a total of more than £ 790m clbadified as "badets under construction". We also know that in late 2018, the borrowing limit under agreements with Bank of America Merrill Lynch, Goldman Sachs and HSBC was increased to £ 637m ($ 828m).
Spurs chairman Daniel Levy recently said the cost of new developments would be closer to £ 1 billion ($ 1.3 billion). The portion of the borrowings, the interest rate and the payback period is dependent on the expense that Spurs will incur on interest costs. Spurs' strategy is to divide the total loans into tranches that will expire at different times, although we do not know how long the depreciation will be.
None of the figures have been published by the Spurs, but we can come up with a decent estimate. For the sake of argument, badume that the loan will total £ 850m (presumably on the low side), repayable at an average rate of 4.5% over 25 years.
On the basis of badumed conditions, the annual cost, in interest and principal, would be approximately £ 57m ($ 74m). In the early years, a significant portion of the payments will be interest expense – approximately £ 36m per annum – and will be allocated to the income statement.
The capital must be repaid and must come from the net profit realized by the club. Depreciation of part of the new badet will also have to be provisioned.
How our new house was built.
#SpursNewStadium ⚪️ #COYS pic.twitter.com/vzNZD1u5um– Tottenham Hotspur (@SpursOfficial) March 22, 2019
Revenue for 2017/18 rose from £ 45.3 to £ 71 million after the season's move to Wembley and Spurs, which is expected to increase again after moving to the new stadium.
The increase in sponsorship revenue and ancillary revenue is expected to increase receipts from box office receipts.
However, there are two important risks for Spurs. The first is that the team must continue to qualify for the Champions League. In 2018, the Spurs received 53 million pounds ($ 69 million) from UEFA. By withdrawing from the group of first four and having to settle for the Europa League, the payment of UEFA would decrease considerably.
The other risk comes from Daniel Levy's legendary parsimonious financial management. In simple terms, the relative success of Spurs in recent seasons has been achieved at a lower cost and at a non-unsustainable cost.
The Spurs payroll for 2017/18 was £ 147.6m ($ 192m), which was by far the lowest of the six best teams. Arsenal was close to just over £ 220m ($ 286m), while Liverpool and Manchester City were 20% higher Manchester United topped the list with nearly £ 300m ($ 390m).
Spurs players who earn far below their market value will surely wake up and ask for more. How long can the Spurs Dreamland continue?
On Tuesday, the Spurs will play at home against Manchester City in the first leg of the quarter-final round of the UEFA Champions League. The return match will take place on 17 April in Manchester and three days later, the same teams will face the same place in the Premier League.
