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.
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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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