Building a new stadium is very hard for Spurs, as it was for Arsenal

From Michael Budgen

How very nice of you to reproduce the Spurs financial statement that Rhys trotted out.

As the saying goes, well, they would say that wouldn’t they !!!!!

Firstly, the Construction company MACE  did the Shard, none of the steels fitted that, and neither did they for WHL2.

Secondly, the electrics were so badly done they had to be completely ripped out and re-installed from scratch, Cross Rail has ground to a halt as all the sparks that were on triple time on that are now on quadruple time at Spurs, earning more than Kane no doubt !!

A Project of that magnitude was never going to open on time, but Spurs would never have been given permission to play at Wembley for 2 years, so they pretended it was and gambled on the just one more game scenario and that The FA would sell a grandma if it lined their own pockets.

The massive overrun costs will be down to Spurs, as if they weren’t they would be telling everyone now.

Spurs finances are now reaching crunch time. As Rhys rightly pointed out they have £1bn of assets, but you can’t realise that unless you sell and lease it back. Ditto training ground, and you can only mortgage It once.

They have effectively spent the last 3 years banking cash, with a brilliantly overreaching squad, punching far above their wage / transfer ratio. However, Eriksen, Kane & Alli, have all now been given pay rises, and that will soon bring them level.

The EBITDA is a good methodology to try and compare companies like for like. But it’s also like saying your mortgage payments don’t count when thinking about your holidays.

The issue they have now is they are debt loaded, this isn’t a bad thing, per se, but it has to be serviced, and the Banks as always will want their pound of flesh, for instance, Arsenal had to leave a large cash sum in reserve, to satisfy covenants, and tellingly they have borrowed about £800 million, the cost of which will be based on them retaining that EBITDA, otherwise the banks come calling, with their less happy faces on.

This therefore means they are in the same boat we were 10 years ago. No, you can’t spend any money, make do & mend, the difference is whether Poch will have the stomach for the fight that Arsene did ?

Arsenal’s debt, is completely different, as it’s not attached unlike the Glazers at Man U who basically got the club to buy it for them with a bit of chutzpah. Silent Stan is really Long Term Stan, not that has ever proved popular with footy fans. It was no coincidence that Arsene’s removal came about after the dismal Club & Box level sales last year, and I don’t think the investment going on in those areas right now is for UEFA cup football.

Even Spurs not reaching the last 16 will blow a hole in the finances, and finishing 5th would severely reduce money available, as it would have at Arsenal 10 years ago, but does Poch want to gamble his career for them, and how key is Poch to Spurs’ success ? Can he be replaced ?

It’s been an incredible couple of years of football, with a genuine ‘Big 6’ making the league interesting again, and real champions in Citeh. Let it roll !

Myles says:

Thanks, Michael. 

Wish I understood business as well as you do.

Until this morning, when I saw Dele Alli talking about their 3-1 win  at West Ham, I didn’t realise that the Spurs players call the manager “Poch”.

An away draw at Arsenal in Carabao Cup quarter-final actually suits Spurs this time round. And Dele will fancy himself in that game.

PS.I don’t think Poch can be replaced by a coach of similar abilities.