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Tottenham Hotspur Stadium - Licence To Stand

AdamB said:
Does anyone think its odd that we haven't sold naming rights for the stadium yet? It feels like it would have made sense to do so on the back of the CL run last year. Not obvious to me why we havent done so....
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No. The club wants a long term partner, who share the same values and strategy. That in addition to the level of investment we're talking about, really narrows down list of potential partners.
The few that are on that list, might not be willing/interested to make such a large commitment at the moment, considering the uncertainty in the world economy.
Also, the £15-20m a year this would bring in to the club, is not essential.
The club will not sign a deal with a company it can't identify with.
 
AdamB said:
Of course its important! Its pure cash with no cost...say £20m p.a. flows straight through to the bottom line and cash. AIA was £320m over 8 years so £40m per year, so perhaps double
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faust_02.jpg


Robert-Johnson.jpg
 
inkpenspur said:
So basically the bottom line debt we are financing on the stadium is £637M paid back over a period between 23 and 30 years. So between £21M to £27M a year to pay off the stadium. I can't see that crippling us in the same was that the Emirates hamstrung Arsenal for so long. Pleased it isn't the £1Bn debt that the media/opposition fans were wishing on us!
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And inflation means that by 2049, £21-27m will probably be the cost of a box of cornettos.
 
AdamB said:
Does anyone think its odd that we haven't sold naming rights for the stadium yet? It feels like it would have made sense to do so on the back of the CL run last year. Not obvious to me why we havent done so....
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It was announced yesterday.

“The Monster Stadium”.
 
Jordinho said:
Can't wait to read swiss ramble's breakdown of how this is going to severely hamstring us for years to come.
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£17 million a year in interest payments. One would assume that naming rights alone (when eventually sorted) would come somewhere close to funding that.

The fact that we have ended up with as much as £637 million of debt indicates to me that the stadium went well over budget (I thought we would be somewhere around £400 million)

Looking at the quoted average maturity of 23 years, applying the average 2.66% interest and assuming that we pay off the entire debt over that 23 year timescale that would indicate capital and interest payments of £37 million a year.

So as long as the new stadium nets us more than £37 million a year of extra revenue then it was a good financial move to build it (although that doesn't factor in the (likely) £300+ million of funds that the club have ploughed in in addition to the £637 million of debt)
 
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Finney Is Back said:
£17 million a year in interest payments. One would assume that naming rights alone (when eventually sorted) would come somewhere close to funding that.

The fact that we have ended up with as much as £637 million of debt indicates to me that the stadium went well over budget (I thought we would be somewhere around £400 million)

Looking at the quoted average maturity of 23 years, applying the average 2.66% interest and assuming that we pay off the entire debt over that 23 year timescale that would indicate capital and interest payments of £37 million a year.

So as long as the new stadium nets us more than £37 million a year of extra revenue then it was a good financial move to build it (although that doesn't factor in the (likely) £300+ million of funds that the club have ploughed in in addition to the £637 million of debt)
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There's also the future sale of all the units in tower block being built in the SE corner (579 flats and a 180 room hotel) to factor in. And the same with the Goods Yard site the club bought for storing building materials, that's being turned into 316 houses.

Even if we are only making £100k per house/flat, that's £90m straight away
 
AdamB said:
Does anyone think its odd that we haven't sold naming rights for the stadium yet? It feels like it would have made sense to do so on the back of the CL run last year. Not obvious to me why we havent done so....
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This was all explained in a video last week, keep up!
 
Finney Is Back said:
So as long as the new stadium nets us more than £37 million a year of extra revenue then it was a good financial move to build it (although that doesn't factor in the (likely) £300+ million of funds that the club have ploughed in in addition to the £637 million of debt)
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In round figures, £2m per home PREM game.
As you say though, we also lobbed in £300m cash and a LOT of time/effort.

But of course it was worth it, almost regardless of cost, as a team pushing for CL and Prem glory cannot be in a decrepit 36k seater. Our improved image will lead to massive Media Deals etc, so it is almost impossible to quantify... but we could not remain as we were.

I guess we could have revamped WHL for £50m or something.
 
Gutter Boy said:
There's also the future sale of all the units in tower block being built in the SE corner (579 flats and a 180 room hotel) to factor in. And the same with the Goods Yard site the club bought for storing building materials, that's being turned into 316 houses.

Even if we are only making £100k per house/flat, that's £90m straight away
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Problem is that we haven't built them yet and it will need us to take on more debt to do so. With that in mind I think we're likely to either sell the site directly to a large developer or at least partner a large developer so that they put up the finance for the building cost and share the profit. I think residential developments are often costed somewhere in the vicinity of one third land and planning costs, one third development costs and one third profit. So in theory a partner could come in and build them with us splitting the profit 50/50.
 
Bullet said:
In round figures, £2m per home PREM game.
As you say though, we also lobbed in £300m cash and a LOT of time/effort.

But of course it was worth it, almost regardless of cost, as a team pushing for CL and Prem glory cannot be in a decrepit 36k seater. Our improved image will lead to massive Media Deals etc, so it is almost impossible to quantify... but we could not remain as we were.

I guess we could have revamped WHL for £50m or something.
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I think my guess before the stadium was ready was that the it would result in us increasing stadium, ticket, corporate and match day revenue by £60 to £80 million before considering naming rights. It will be interesting to see the accounts for this first year of us in the stadium full time.
 
Bullet said:
I guess we could have revamped WHL for £50m or something.
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That’s a lot of money left over after a climbing wall, a 12 foot rooster, some fill from the bottom up beer taps, and no cheese room.

Could have bought a right back or something as well.
 
Finney Is Back said:
£17 million a year in interest payments. One would assume that naming rights alone (when eventually sorted) would come somewhere close to funding that.

The fact that we have ended up with as much as £637 million of debt indicates to me that the stadium went well over budget (I thought we would be somewhere around £400 million)

Looking at the quoted average maturity of 23 years, applying the average 2.66% interest and assuming that we pay off the entire debt over that 23 year timescale that would indicate capital and interest payments of £37 million a year.

So as long as the new stadium nets us more than £37 million a year of extra revenue then it was a good financial move to build it (although that doesn't factor in the (likely) £300+ million of funds that the club have ploughed in in addition to the £637 million of debt)
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£639m / 23 years is £27.7m a year + the £17m interest = £44.7m a year to pay back
 
inkpenspur said:
So basically the bottom line debt we are financing on the stadium is £637M paid back over a period between 23 and 30 years. So between £21M to £27M a year to pay off the stadium. I can't see that crippling us in the same was that the Emirates hamstrung Arsenal for so long. Pleased it isn't the £1Bn debt that the media/opposition fans were wishing on us!
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I never pay any interest on my borrowing either:rolleyes:
 
AdamB said:
Does anyone think its odd that we haven't sold naming rights for the stadium yet? It feels like it would have made sense to do so on the back of the CL run last year. Not obvious to me why we havent done so....
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Think UK naming right values lag massively behind the US ....crank the NFL link up and it may pay dividends?
 
Gutter Boy said:
And inflation means that by 2049, £21-27m will probably be the cost of a box of cornettos.
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The timing of the finances may well fall in our favour on this project. Record low interest rates during the borrowing phase.....and surely, its got to creep in soon, inflation ramping up to inflate that debt away.
 
There was talk of double-header football and gridiron on the same day. The amount of plant and hassle in the video above is surprising, it’s as much a state of the art adjustable stadium as the Bingo Club’s.
 
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