Spurs take out £175 million loan to help get through covid 19

uneasydaz

Well-Known Member
Tottenham chairman Daniel Levy has urged the authorities to find a “safe way” to bring supporters back into stadiums after his club took out a £175million loan from the Bank of England to help them survive the coronavirus crisis.

Spurs are estimating they could lose more than £200m in revenue because of the pandemic, which will see them resume matches behind closed doors while a host of other events at their new stadium set for 2020 have been cancelled.

They are eligible for a Covid Corporate Financing Facility (CCFF), a Government scheme set up for companies that have a “strong investment grade rating and make material contribution to the British economy”.

  • 5 Premier League games (now being played behind closed doors)
  • 2 Guns N' Roses concerts
  • 1 Lady Gaga concert
  • Capital Summertime Ball
  • Anthony Joshua v Kubrat Pulev
  • England v Australia Rugby League Ashes test
  • 2 x NFL games
At the start of the pandemic Levy warned there would be severe financial challenges ahead, but his words were lost in the fall-out of his decision to furlough some non-playing staff and impose pay cuts on others – one he eventually overturned.

But with spectators banned from sporting and other entertainment events for the foreseeable future, the club have a big hole in their revenue.

Levy told the club’s official website: “We have always run this club on a self-sustaining commercial basis.

“I said as early as 18 March that, in all my 20 years at the club, there have been many hurdles along the way but none of this magnitude – the Covid-19 pandemic has shown itself to be the most serious of them all.

It is imperative that we now all work together – scientists, technologists, the Government and the live events sector – to find a safe way to bring spectators back to sport and entertainment venues.

“Collectively we have the ability to support the development of new technologies to make this possible and to once again experience the passion of fans at live events.”

Five of Spurs’ remaining Premier League games are due to be played at the Tottenham Hotspur Stadium – including stand-out fixtures against Manchester United and Arsenal – but they will miss out on a huge chunk of income due to them taking place behind closed doors.

The stadium also had a full itinerary for non-Spurs events for the remainder of 2020, but they have all been wiped out

Guns N’ Roses, Lady Gaga and the Capital Summertime Ball concerts were all due to be held in north London along with Anthony Joshua’s world title fight with Kubrat Pulev.

A Rugby League Ashes test in November and two NFL games in the autumn were also in the calendar but will no longer take place.

Spurs also have to pay a rebate to broadcasters.
 
Not just the small teams that are being effected. That is a hefty loan to contend with.

I suppose they built the new stadium on a continuous cash flow model, not just football bringing in money.
 
Tottenham chairman Daniel Levy has urged the authorities to find a “safe way” to bring supporters back into stadiums after his club took out a £175million loan from the Bank of England to help them survive the coronavirus crisis.

Spurs are estimating they could lose more than £200m in revenue because of the pandemic, which will see them resume matches behind closed doors while a host of other events at their new stadium set for 2020 have been cancelled.

They are eligible for a Covid Corporate Financing Facility (CCFF), a Government scheme set up for companies that have a “strong investment grade rating and make material contribution to the British economy”.

  • 5 Premier League games (now being played behind closed doors)
  • 2 Guns N' Roses concerts
  • 1 Lady Gaga concert
  • Capital Summertime Ball
  • Anthony Joshua v Kubrat Pulev
  • England v Australia Rugby League Ashes test
  • 2 x NFL games
At the start of the pandemic Levy warned there would be severe financial challenges ahead, but his words were lost in the fall-out of his decision to furlough some non-playing staff and impose pay cuts on others – one he eventually overturned.

But with spectators banned from sporting and other entertainment events for the foreseeable future, the club have a big hole in their revenue.

Levy told the club’s official website: “We have always run this club on a self-sustaining commercial basis.

“I said as early as 18 March that, in all my 20 years at the club, there have been many hurdles along the way but none of this magnitude – the Covid-19 pandemic has shown itself to be the most serious of them all.

It is imperative that we now all work together – scientists, technologists, the Government and the live events sector – to find a safe way to bring spectators back to sport and entertainment venues.

“Collectively we have the ability to support the development of new technologies to make this possible and to once again experience the passion of fans at live events.”

Five of Spurs’ remaining Premier League games are due to be played at the Tottenham Hotspur Stadium – including stand-out fixtures against Manchester United and Arsenal – but they will miss out on a huge chunk of income due to them taking place behind closed doors.

The stadium also had a full itinerary for non-Spurs events for the remainder of 2020, but they have all been wiped out

Guns N’ Roses, Lady Gaga and the Capital Summertime Ball concerts were all due to be held in north London along with Anthony Joshua’s world title fight with Kubrat Pulev.

A Rugby League Ashes test in November and two NFL games in the autumn were also in the calendar but will no longer take place.

Spurs also have to pay a rebate to broadcasters.
My heart fkn bleeds spurs. Wasn't that when you priced out normal fans eh?
 
Inequality between the elite clubs and the rest is already starting to widen.

Spurs could only access this financing because they have a very high credit rating. Most clubs in British football would not be eligible and therefore will be allowed to fold before they get any support.

Grim times ahead for any club not in the EPL big six.
 
Inequality between the elite clubs and the rest is already starting to widen.

Spurs could only access this financing because they have a very high credit rating. Most clubs in British football would not be eligible and therefore will be allowed to fold before they get any support.

Grim times ahead for any club not in the EPL big six.
I think the most sensible option would be for smaller clubs to basically function as a social club, not play games and have no outgoings until they get fans back in and earning revenue but not sure if that works legally as I am thick
 
What a shame...I find it hard to feel sorry for certain clubs whose moral compass is all over the place. The way they "dealt" with local business when trying to but the land to build the new stadium was criminal. If they were really in trouble sell Kane and Son. That would pay the bills.
 
Tottenham are one of the best run clubs in UK. They only got access to this loan because of that.

Their one of only a few clubs who make operating profit.
 
I could imagine that Spurs will be 1 of the team affected most by this virus fallout. Just opened a new stadium which cost the best part of a billion quid, which required massive loans to finance, finance that they thought they could easily cover because it was being branded as a true multi purpose stadium. However, if your losing that aspect of it for a year, when it's not even been open a year, then that's bound to put big pressure on finances.
 
All that money through their tv contracts and merchandising and still needing or asking for a loan.

They should get f*ck all.

Shows you just how much they rely on that TV money. I think it was Burnley who were quite vocal about needing the TV money or they would go out of business.
 
Shows you just how much they rely on that TV money. I think it was Burnley who were quite vocal about needing the TV money or they would go out of business.

The problem is you live to your means. If you were to post record profits every year fans will ask if that couldn't be spent on better players with bigger wages.
 
How is this going to fit with financial fair play if other European governments dont off loans to clubs?
I think loans only come into FFP if they are from the owners of a club (or a company associated with them). As this is a government backed scheme they should be fine.
 
Money down there is frightening, here’s hoping the one good thing to come out of this situation is a (slightly) more level playing field.
 
Dear Spurs, Burnley, whoever else....

Try not paying your players ridiculous mega-salaries you shower of wanks.

Yours,
Archimedes.
 
I wonder what they put us as security? Possibly their stadium or training facility.
The problem will be a potential 2nd wave of this virus shutting everything down again, I see today reports of 11 countries starting restrictions again
 
The problem will be a potential 2nd wave of this virus shutting everything down again, I see today reports of 11 countries starting restrictions again
What 11 countries are doing this? Haven’t seen it reported.
 
The problem will be a potential 2nd wave of this virus shutting everything down again, I see today reports of 11 countries starting restrictions again

What 11 countries are doing this? Haven’t seen it reported.

Where is this from?

A Telegraph article today summarised 11 countries that have had to alter certain aspects of exiting lockdown over a period; it's not new restrictions.
 
The price of a ticket for a game here in London is insane for the average fan. Its a corporate event/tourist league at this stage.

I have very little sympathy for the majority of EPL clubs (although I have a soft spot for Crystal Palace as my nearest club and gone to a good few games over the years).
 
I’m a little confused.

are spurs saying they need the following to break even? Or just leveraging legislation to get cash in?


  • 5 Premier League games (now being played behind closed doors)
  • 2 Guns N' Roses concerts
  • 1 Lady Gaga concert
  • Capital Summertime Ball
  • Anthony Joshua v Kubrat Pulev
  • England v Australia Rugby League Ashes test
  • 2 x NFL games
 
I’m a little confused.

are spurs saying they need the following to break even? Or just leveraging legislation to get cash in?


  • 5 Premier League games (now being played behind closed doors)
  • 2 Guns N' Roses concerts
  • 1 Lady Gaga concert
  • Capital Summertime Ball
  • Anthony Joshua v Kubrat Pulev
  • England v Australia Rugby League Ashes test
  • 2 x NFL games
Id assume they are saying with loss of income from these events, plus having to pay back a rebate to the networks that bought the rights, they need this loan to cover the loss.
 
I understand one of Spurs fundamental planning assumptions was to design a stadium to hold other events eg concerts/nfl etc. The income from these was probably factored into budgets

They need additional revenues to pay back the building costs
 
They are probably wishing they could pay off the whole £1B stadium with a state funded 0.5% loan.
 
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