We've closed the refinancing | Vital Football

We've closed the refinancing

#3
Bank of America arranged the new deal, having helped Spurs restructure its stadium debt in 2019. The club signed a £400m loan with three banks in May 2017 to finance its new 62,850 seat stadium, which it later refinanced with £525m of US PPs.

Sources said the new deal largely went to existing investors in the previous private placement. This meant that many in the market were unaware the transaction took place, as there was no full marketing period.

A prominent banker in the PP market said that though he did not know about the deal he was not surprised by it: “I’m sure they want shot of the CCFF given the likely political pressure of not sending the Bank of England’s money to players pockets.”

Spurs used the CCFF scheme to issue £175m of commercial paper through its Tottenham Hotspur Stadium Ltd special purpose vehicle last June. This commercial paper facility, which the club cannot use to finance player acquisitions, is set to end in March 2022, but borrowers can request to repay the funds early during a sell-back window run weekly by the Bank of England. As of Wednesday, the Bank of England held just over £4.6bn of outstanding commercial paper issued under the scheme.

Spurs is not the only footballing entity to have sought outside funding this year.
The English Football League (EFL) signed a loan agreement with MetLife in March, for example, while 12 European clubs, including Spurs, announced short-lived plans for a European Super League backed by funds from JP Morgan.
Tottenham’s mid-table rival Arsenal already repaid its own £120m CCFF holding earlier this month. The Islington-based club is believed to have taken out a loan with Barclays to finance the repayment, according to Companies House. The exact size and terms were not disclosed.

In early 2020, Everton FC appointed JP Morgan and MUFG to arrange roughly £500m of financing to fund the team’s new stadium at Bramley-Moore Dock in Liverpool. Sources have told GlobalCapital to expect that deal to reach the capital markets in the coming months. "Everyone was expecting the Everton deal in the PP market so the Tottenham one came as a bit of a bolt from the blue," said a PP investor in London. He said he wouldn't be surprised if other football clubs will try to term out CCFF loans in the debt markets in the coming months.

Spurs’ visit to the debt capital markets is not the only surprise return the club. Its beloved former manager Mauricio Pochettino is rumoured to return to the vacant manager role, 18 months after he first left — just a few months after the last PP was signed.
 
#7
He's a brilliant businessman nobody can deny that.

The reason there is such a willing audience for our debt, is down to how one man has managed our finances, he's generated profits, taken no dividends, and reinvested every penny back into the club's infrastructure. Given the circumstances of the last year and the financial battering we've take, make no mistake this is a resounding vote of confidence in Levy's stewardship; at least from the debt market.
 
#8
The reason there is such a willing audience for our debt, is down to how one man has managed our finances, he's generated profits, taken no dividends, and reinvested every penny back into the club's infrastructure. Given the circumstances of the last year and the financial battering we've take, make no mistake this is a resounding vote of confidence in Levy's stewardship; at least from the debt market.

I disagree completely with this. It's a resounding note of confidence in the London Real Estate market. Asset-backed lending...the rates indicate that that is exactly what it is. That debt is probably first in line and was likely talked about when the original program was set up 3-4 years ago. Since then the assets have grown in value, unaffected by COVID. There isn't any magic to that. At all.

Levy created the asset. But let's not inflate his abilities. When he needed the government no one was lending, with the recovery, the money can't be lent fast enough.

The good news is it appears he didn't need the entire 300 million he borrowed from the government.

However, it cannot of been an easy period during 2020 for Levy with everything on the brink. Since January 1, it's been a cakewalk.
 
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xvausch

Vital 1st Team Regular
#9
I disagree completely with this. It's a resounding note of confidence in the London Real Estate market. Asset-backed lending...the rates indicate that that is exactly what it is. That debt is probably first in line and was likely talked about when the original program was set up 3-4 years ago. Since then the assets have grown in value, unaffected by COVID. There isn't any magic to that. At all.

Levy created the asset. But let's not inflate his abilities. When he needed the government no one was lending, with the recovery, the money can't be lent fast enough.

The good news is it appears he didn't need the entire 300 million he borrowed from the government.
You ARE oversimplifying a very complex set of maneuvers over time.

Alot of unpredictable things occurring, and some deft reactions on the fly. His relationship with the NFL is not to be overlooked in all of this as well, and that is some shrewd business for sure.

Footballing decisions may be suspect, but his biz savvy is high-grade.


.
 
#10
You ARE oversimplifying a very complex set of maneuvers over time.

Alot of unpredictable things occurring, and some deft reactions on the fly. His relationship with the NFL is not to be overlooked in all of this as well, and that is some shrewd business for sure.

Footballing decisions may be suspect, but his biz savvy is high-grade.


.

Whatever. Y'all are attributing some magic powers to a guy who rode expanding TV revenues and now expanding real asset values to success. Was he smart about it. Yes. Did he run a good business. Yes. Is this new round of financing a piece of wizardry. Fuck no. It is completely covered.

The multi-event facility is the key to everything. But it's also risk mitigation. Why rely on one type of entertainment. Multiple revenue streams. It's what any sensible person does.

My idea of brilliance is putting together the right group of people to just kill it. He's incapable of that.... at least so far. It's still a mom-and-pop operation that just went to the bank because the value of their property expanded and extended their line of credit.

Nothing more, nothing less.
 

xvausch

Vital 1st Team Regular
#11
Whatever. Y'all are attributing some magic powers to a guy who rode expanding TV revenues and now expanding real asset values to success. Was he smart about it. Yes. Did he run a good business. Yes. Is this new round of financing a piece of wizardry. Fuck no. It is completely covered.

The multi-event facility is the key to everything. But it's also risk mitigation. Why rely on one type of entertainment. Multiple revenue streams. It's what any sensible person does.

My idea of brilliance is putting together the right group of people to just kill it. He's incapable of that.... at least so far. It's still a mom-and-pop operation that just went to the bank because the value of their property expanded and extended their line of credit.

Nothing more, nothing less.
Could depend a bit upon who the PP investors are, or how the group is setup. Its telling that this was offered to existing investors as opposed to offered more broadly.

Im not assigning magical powers, just prudent stewardship, in the face of others waving flaming arms about the house fire that doesnt exist.

Good move Daniel.

Now hire a Mgr & finish the front office shuffle, and get the fans back in the best stadium in the world watching Spurs football at its finest.

.
 
#12
Could depend a bit upon who the PP investors are, or how the group is setup. Its telling that this was offered to existing investors as opposed to offered more broadly.

Im not assigning magical powers, just prudent stewardship, in the face of others waving flaming arms about the house fire that doesnt exist.

Good move Daniel.

Now hire a Mgr & finish the front office shuffle, and get the fans back in the best stadium in the world watching Spurs football at its finest.

.

The PP was quietly done to existing investors.

Anyway, it is the management situation that matters.
 
#13
Whatever. Y'all are attributing some magic powers to a guy who rode expanding TV revenues and now expanding real asset values to success. Was he smart about it. Yes. Did he run a good business. Yes. Is this new round of financing a piece of wizardry. Fuck no. It is completely covered.

The multi-event facility is the key to everything. But it's also risk mitigation. Why rely on one type of entertainment. Multiple revenue streams. It's what any sensible person does.

My idea of brilliance is putting together the right group of people to just kill it. He's incapable of that.... at least so far. It's still a mom-and-pop operation that just went to the bank because the value of their property expanded and extended their line of credit.

Nothing more, nothing less.
ENIC won the friggin lottery with the TV deals.
 
#15
What seems to be the hold up with the stadium naming rights? There's a potential windfall on the cards if he finds the right sponsor.

I don't give a shit how much money we have until the right management team is in place. If it remains as it is with a new manager brought in we should just take the cash out into the middle of the NFL pitch and have a bonfire with it.
 

steveperryman

Vital Football Legend
#16
I don't give a shit how much money we have until the right management team is in place. If it remains as it is with a new manager brought in we should just take the cash out into the middle of the NFL pitch and have a bonfire with it.
I'd include Poch in that as well. He isn't the answer.

Has Daniel taken leave of his senses? I was quietly confident he had earmarked somebody of merit, that was until this news blew up.
 
#19
I don't give a shit how much money we have until the right management team is in place. If it remains as it is with a new manager brought in we should just take the cash out into the middle of the NFL pitch and have a bonfire with it.
LMFAO

I like this post more than I should do. But we all know it's true with Levy and his groundhog day shite.
 
#20
You ARE oversimplifying a very complex set of maneuvers over time.

Alot of unpredictable things occurring, and some deft reactions on the fly. His relationship with the NFL is not to be overlooked in all of this as well, and that is some shrewd business for sure.

Footballing decisions may be suspect, but his biz savvy is high-grade.


.
80 is over-simplifying, alot.

It has nothing to do with rising asset values. I don't believe 80 has ever raised £300 mill.(but he could have for all I know!) I have been an integral part of raising half that sum from existing private investors and believe me, simple it is not.

Asset-backed non-mortgage finance is normally the most expensive type of fundraising, even in the property market, especially when it's a market still full of FUD.

Ultimately as all investors do or the banks that syndicate them, it's the man at the top, his track record that you back, nothing more nothing less.

However, as I've said before and will keep repeating, we do need a fresh management structure in place so that the footballing side has a new vision, a new project and a new backbone that will use the newly increased and increasing income wisely.

For that we need a strategy and a strategic Director of football and of course a new manager - in the short term, it doesn't matter who comes first.
 
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