Report reveals exactly how much Spurs owe in loan repayments for new stadium
Spurs are said to be in a precarious financial position due to the COVID-19 pandemic, with the club still owing […]
The post Report reveals exactly how much Spurs owe in loan repayments for new stadium appeared first on Spurs Web - Tottenham Hotspur Football News.
Spurs are said to be in a precarious financial position due to the COVID-19 pandemic, with the club still owing a substantial debt on the Tottenham Hotspur Stadium (Football.London’s Alasdair Gold).
The Sun have now revealed that the club still owe a whopping £852 million in loan repayments to cover the cost of the stadium.
This includes the £637 million that Spurs borrowed from Goldman Sachs, Bank of America Merrill Lynch, and HSBC, as well as £215 million in interest payments.
While that figure seems extremely high, it is said that the club’s official documents show the average length of all remaining stadium-related loans is 23 years with an interest rate of 2.66 per cent APR.
This means that the club will need to pay back an average of £37 million-a-year until 2042. However, the club’s matchday revenue has increased from £45.3 million at White Hart Lane to more than £100 million at the new stadium.
This means that Tottenham will have a higher income than they had at their old stadium even after covering their yearly interest payment.
The club will also likely make a considerable amount of income from NFL games and various other events that are to be held at the Tottenham Hotspur Stadium.
Unfortunately, with the matches this season and potentially next season set to be played behind closed doors (Football Insider), as well as NFL games and a Guns N’ Roses concert being cancelled, the club’s revenue will take a substantial short-term hit.
Spurs Web Opinion
The club only incurred such a huge debt on the stadium as they knew the income earned would be more than enough to cover the interest payments. Having said that, affording the £37 million-a-year payment will likely be extremely difficult for the club in the short-term, which is why I doubt we will spend any money in the transfer market.
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