Tottenham Hotspur have been put in an extremely challenging situation due to the financial impact of COVID-19, with the club having spent close to £1 billion on the new stadium.
Spurs have incurred a considerable mortgage in order to build the stadium and paying it off could be a real challenge with revenue streams grinding to a halt due to the COVID-19 crisis (The Sun).
The club have acquired a £175million loan from the Bank of England in order to help them navigate through these difficult times (The Athletic).
A report by Forbes has now shed light on the difficulties facing the Lilywhites even after things return to normality.
It is explained that the reason Spurs incurred such a considerable cost on the stadium was to build a venue with as much earning potential as possible.
The multi-use venue was designed to maximise revenue even on non-match days but the club’s business plan is said to have received a massive blow to the financial downturn.
It is revealed that the entertainment sector turnover has halved and food services are down by two thirds and this is a trend that is unlikely to be reversed in the next few years.
Additionally, it is suggested that the building boom in the UK has now well and truly come to an end and we are unlikely to see any other club build such a venue in the foreseeable future.
The report points out that Chelsea and Liverpool have both reconsidered their stadium development plans, and suggests that the Tottenham Hotspur Stadium is likely to be the last of its kind built for many years.
Spurs Web Opinion
It is impossible to overstate how difficult a situation this now puts us in. The stadium was intended to allow us to compete financially with the biggest clubs in Europe. However, the mortgage on the venue could now be what holds us back from spending big in the transfer market and could set us back several years.
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