Tottenham wages break £100m barrier
It has been interesting delving into the club finances and how it affects us on the football field, the series has been well received and I thank you for the kind comments you have left. Today I have looked at debt.
Levy doesn't put his hand in his pocket, if only we had bought a striker we would have qualified for the Champions League (not if he performed like Roberto Soldado we wouldn't have) are arguments you hear all the time. Fans seem to think ENIC money is actually Tottenham's money, it isn't and can no longer be used for players or to subsidise wages anyway.
In 2014 ENIC did put £40 million into the club in the form of an interest-free unsecured loan. This was converted into non-voting, preference share capital. In the meantime we have paid of £50 million of loans in the last 2 years, which of course were not interest-free. We have to prepare to build the stadium so we can't afford to have to may outstanding loans if we want to raise capital, even though it can be raised against projected future income. The club still needs to be a sound business investment and have a record of such.
In 2007 we had bank loans of £1.9 million, no property loans and other loans of £28.7 million. Our gross debt was £30.6 million with cash in the bank of £28.3 million giving us a Net Debt of £2.3 million.
In 2008 we had bank loans of £1.8 million, property loans of £20.3 million and other loans of £27.7 million. Our gross debt was £49.8 million with cash in the bank of £35.3 million giving us a Net Debt of £14.6 million.
In 2009 we had bank loans of £6.8 million, property loans of £32.1 million and other loans of £26.7 million. Our gross debt was £65.6 million with cash in the bank of £19.6 million giving us a Net Debt of £45.9 million.
In 2010 we had bank loans of £16.7 million, property loans of £33.2 million and other loans of £25.9 million. Our gross debt was £75.8 million with cash in the bank of £11.3 million giving us a Net Debt of £64.5 million.
In 2011 we had bank loans of £16.6 million, property loans of £36.2 million and other loans of £24.6 million. Our gross debt was £77.5 million with cash in the bank of £20.7 million giving us a Net Debt of £56.8 million.
In 2012 we had bank loans of £21.3 million, property loans of £41.2 million and other loans of £23.3 million. Our gross debt was £85.8 million with cash in the bank of £15.7 million giving us a Net Debt of £70.1 million.
In 2013 we had bank loans of £21.1 million, property loans of £15.0 million and other loans of £21.8 million. Our gross debt was £58.0 million with cash in the bank of £3.2 million giving us a Net Debt of £54.8 million.
In 2014 we had bank loans of £1.2 million, property loans of £14.0 million and other loans of £20.2 million. Our gross debt was £35.4 million with cash in the bank of £38.5 million giving us a Net Debt of (£3.2 million), in other words a profit.
As you can see from those figures bank loans have all but bee wiped out with only £1.2 million remaining, other loans are being paid off £1 million a year and we have returned to having cash in the bank after property purchases around the stadium to prepare for the redevelopment of White Hart Lane, the building of a new stadium, Northumberland Development Project.
The net debt reduction means the company is carrying less debt and is a more attractive proposition for the bank financing that will be needed to build the new stadium. Fans have been frustrated by the delay but now that Tottenham have won the court case and have come to an agreement with Archway Steel Metal Works Ltd, plans can start to come to fruition. We await an announcement from the club over the summer.
At the same time our wages have taken a rise and we now pay over £100 million, 56% of our total income. We need to keep them under control and with a reliance on youth, you'd expect we could do that.
2010 £67.1 million
2011 £91.1 million
2012 £90.2 million
2013 £96.1 million
2013 £100.4 million
Of course our income has increased as well so looking at it as a percentage of total income is perhaps more accurate.
2010 56%
2011 58%
2012 63%
2013 65%
2014 56%
We have bought property and land for the new stadium, reduced our borrowings, recorded a profit while increasing our wage bill 200% since 2005, but in effect only by 2% since 3009. Revenue has grown 60% since 2009, wages have grown by 66% in the same period.
The highly paid football mercenaries are up for sale as we look to replace them with hungry youngsters and a core with a real feeling for the club. It is hoped that that the passion Kane, Mason and Bentaleb particularly have for the club rubs off on people like Eric Dier and they become long term Tottenham Hotspur players.
We all love, we all want players who play for the badge, we have some now, the more the merrier, not badge kissers, badge lovers.
Levy doesn't put his hand in his pocket, if only we had bought a striker we would have qualified for the Champions League (not if he performed like Roberto Soldado we wouldn't have) are arguments you hear all the time. Fans seem to think ENIC money is actually Tottenham's money, it isn't and can no longer be used for players or to subsidise wages anyway.
In 2014 ENIC did put £40 million into the club in the form of an interest-free unsecured loan. This was converted into non-voting, preference share capital. In the meantime we have paid of £50 million of loans in the last 2 years, which of course were not interest-free. We have to prepare to build the stadium so we can't afford to have to may outstanding loans if we want to raise capital, even though it can be raised against projected future income. The club still needs to be a sound business investment and have a record of such.
In 2007 we had bank loans of £1.9 million, no property loans and other loans of £28.7 million. Our gross debt was £30.6 million with cash in the bank of £28.3 million giving us a Net Debt of £2.3 million.
In 2008 we had bank loans of £1.8 million, property loans of £20.3 million and other loans of £27.7 million. Our gross debt was £49.8 million with cash in the bank of £35.3 million giving us a Net Debt of £14.6 million.
In 2009 we had bank loans of £6.8 million, property loans of £32.1 million and other loans of £26.7 million. Our gross debt was £65.6 million with cash in the bank of £19.6 million giving us a Net Debt of £45.9 million.
In 2010 we had bank loans of £16.7 million, property loans of £33.2 million and other loans of £25.9 million. Our gross debt was £75.8 million with cash in the bank of £11.3 million giving us a Net Debt of £64.5 million.
In 2011 we had bank loans of £16.6 million, property loans of £36.2 million and other loans of £24.6 million. Our gross debt was £77.5 million with cash in the bank of £20.7 million giving us a Net Debt of £56.8 million.
In 2012 we had bank loans of £21.3 million, property loans of £41.2 million and other loans of £23.3 million. Our gross debt was £85.8 million with cash in the bank of £15.7 million giving us a Net Debt of £70.1 million.
In 2013 we had bank loans of £21.1 million, property loans of £15.0 million and other loans of £21.8 million. Our gross debt was £58.0 million with cash in the bank of £3.2 million giving us a Net Debt of £54.8 million.
In 2014 we had bank loans of £1.2 million, property loans of £14.0 million and other loans of £20.2 million. Our gross debt was £35.4 million with cash in the bank of £38.5 million giving us a Net Debt of (£3.2 million), in other words a profit.
As you can see from those figures bank loans have all but bee wiped out with only £1.2 million remaining, other loans are being paid off £1 million a year and we have returned to having cash in the bank after property purchases around the stadium to prepare for the redevelopment of White Hart Lane, the building of a new stadium, Northumberland Development Project.
The net debt reduction means the company is carrying less debt and is a more attractive proposition for the bank financing that will be needed to build the new stadium. Fans have been frustrated by the delay but now that Tottenham have won the court case and have come to an agreement with Archway Steel Metal Works Ltd, plans can start to come to fruition. We await an announcement from the club over the summer.
At the same time our wages have taken a rise and we now pay over £100 million, 56% of our total income. We need to keep them under control and with a reliance on youth, you'd expect we could do that.
Wage Bull Since 2009
2009 £60.5 million2010 £67.1 million
2011 £91.1 million
2012 £90.2 million
2013 £96.1 million
2013 £100.4 million
Of course our income has increased as well so looking at it as a percentage of total income is perhaps more accurate.
Wages as percentage of total income
2009 54%2010 56%
2011 58%
2012 63%
2013 65%
2014 56%
The highly paid football mercenaries are up for sale as we look to replace them with hungry youngsters and a core with a real feeling for the club. It is hoped that that the passion Kane, Mason and Bentaleb particularly have for the club rubs off on people like Eric Dier and they become long term Tottenham Hotspur players.
We all love, we all want players who play for the badge, we have some now, the more the merrier, not badge kissers, badge lovers.
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