Spurs new stadium | Loses NFL for 2020 but gains appearance in Gangs of London £££

dumbo

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It's like a Muslim on Hajj celebrating the opening of a MC Donald's in Mecca. Glaston in a nutshell.
 

SalfordRed18

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Of course we're paying to have people work in the food and drink outlets - did you imagine this would come for free? The point is that income goes to Spurs - and from that we pay out the running costs.
You're trying to put a spin on it, but you're no paying just the people though. Through your partnership, brings in all your food and drink outlets. You've essentially hired this company to sort it all out for you. As such all the income does not go to spurs.

Also, any comments on your £800k figure quoted from the sun?
 

GlastonSpur

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You're trying to put a spin on it, but you're no paying just the people though. Through your partnership, brings in all your food and drink outlets. You've essentially hired this company to sort it all out for you. As such all the income does not go to spurs.

Also, any comments on your £800k figure quoted from the sun?
The income does go to Spurs - and from that we pay out the costs involved, including payments to outside contractors.

What further comment on the £800k figure do you want? I've already shown how such a figure is easily reached.
 

Champ

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The food and drink vendors are mostly Spurs' own brands created for the new stadium.

Check out the various names - e.g. The Smashed Olive, The N17 Grill, The Linesman, Naan & Noodle, The Dispensary etc etc. These are not franchised brands that appear elsewhere like Burger King etc.
I don't doubt what your saying here but from what I know, Levy UK are the main partners for your food and beverages, they also provide for several other football teams including Chelsea.
They treat Spurs as a Client, which in essence suggests they are asking for money from Spurs.
As I say, I could be wrong....but I know I'm not.
 

Saffron

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I'd guess that Levy has deliberately avoided referencing White Hart Lane because any buyer of naming rights will want the maximum distance from previous name-associations.
Yeah, like Tottenham Hotspur.

Wouldn’t surprise me if you get an NFL sponsor merely interested in growing their UK market share.
 

GlastonSpur

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I don't doubt what your saying here but from what I know, Levy UK are the main partners for your food and beverages, they also provide for several other football teams including Chelsea.
They treat Spurs as a Client, which in essence suggests they are asking for money from Spurs.
As I say, I could be wrong....but I know I'm not.
Yes, we use some outside contractors - I've not said that everyone working in the various food and drink outlets is an employee of Spurs. But paying a contract fee to such contractors for services provided makes no difference - the vendor brands mostly belong to Spurs, the sales income comes to Spurs, out of which we pay the costs involved, including fees to Levy UK.
 

Johan07

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Yes, we use some outside contractors - I've not said that everyone working in the various food and drink outlets is an employee of Spurs. But paying a contract fee to such contractors for services provided makes no difference - the vendor brands mostly belong to Spurs, the sales income comes to Spurs, out of which we pay the costs involved, including fees to Levy UK.
Do you have a source for this? Because it seems way more likely that Spurs will be reimbursed by a licensing fee, that may or may not be dependent on turnover as one criteria. How are the contractors going to make profit if they just get their costs reimbursed? Sounds like you made up your own business model tbh.
 

Johan07

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I don't doubt what your saying here but from what I know, Levy UK are the main partners for your food and beverages, they also provide for several other football teams including Chelsea.
They treat Spurs as a Client, which in essence suggests they are asking for money from Spurs.
As I say, I could be wrong....but I know I'm not.
You are not.
 

Saffron

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Just googled it, seems like Spurs pay Levy UK £50m to be their caterer for 10 years.

It’s no different from hiring a caterer to your wedding and asking your guests to chip in a tenner for the food.
 

GlastonSpur

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Do you have a source for this? Because it seems way more likely that Spurs will be reimbursed by a licensing fee, that may or may not be dependent on turnover as one criteria. How are the contractors going to make profit if they just get their costs reimbursed? Sounds like you made up your own business model tbh.
Because common sense tells you that they won't be offering their services at just cost price - they will be priced so that they can make a profit. They make a profit, Spurs benefit from their specialist skills and services, and Spurs benefit from the profit they make from food and drink sales once all costs have been subtracted.
 

GlastonSpur

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Just googled it, seems like Spurs pay Levy UK £50m to be their caterer for 10 years.

It’s no different from hiring a caterer to your wedding and asking your guests to chip in a tenner for the food.
No different … except you marry someone new more or less every week, invite 62,000 guests to attend each one, make them buy a ticket for the privilege and then make them pay for all of the food and drink they consume, out of which money you pay the caterers.

But yes, apart from these minor details …. no different :lol:
 
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GlastonSpur

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"Technology Takes the Field: Tottenham Hotspur's Innovative New Stadium"

For those interested, here are Sanjeev Katwa (Chief Technology Officer at Spurs) and Marc Walters (Hewlett-Packard Enterprise, Managing Director for the U.K. & Ireland) talking about the technology involved in Spurs' new stadium

 

Darth Revan

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You are really fascinated by this stadium. Its new stadium, and its nice, as all new stadiums should be, but i just dont get why you in love so much with it.
 

blue blue

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You are really fascinated by this stadium. Its new stadium, and its nice, as all new stadiums should be, but i just dont get why you in love so much with it.
He lives his life for anything and all things Spurs. He's a fanatic. He makes approximately 100 posts a month so inevitably some of them will be about the stadium. That how people roll here. If Utd had just completed a new stadium this forum would have umpteen threads dissecting how the new seats fit their backsides with such comfort or how they seem to firm up when ever they go to the new urinals.
 

Mastadon

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You are really fascinated by this stadium. Its new stadium, and its nice, as all new stadiums should be, but i just dont get why you in love so much with it.
That’s what happens when you don’t win trophies. The stadium is like a nice shiny trophy with catering since you don’t need a trophy room.
 

Lebowski

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You are really fascinated by this stadium. Its new stadium, and its nice, as all new stadiums should be, but i just dont get why you in love so much with it.
To be fair it is a pretty spectacular new stadium and stands leagues above the plastic mechano new stadia we've seen thrown up in the last decade in this country.

I haven't been yet, but I have Spurs away in March pencilled in as one of the aways I'm most looking forward to this season. Mind you, I'm a bit of a stadium anorak. Expect a full review after we play them complete with marks out of ten for the structure, stands, atmosphere, food, aesthetics and acoustics. I bet you can't wait!
 

awop

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LilyWhiteSpur

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https://theathletic.com/1140866/201...for-tottenham-as-they-refinance-400m-of-debt/

So they borrowed £637 million can see why they were quiet for 18months in the transfer market
I think think its quite impressive that we only borrowed that much to be honest considering it cost close to £1B for the entire project.

I know absolutely nothing in finance but why do these deals always start with a very optimistic window to pay it back, only for them to be refinanced and rearranged a year later ?
Any news on the naming ?
It's simply to get the cash in and the work started, refinancing was always going to happen. Nothing new on naming rights.
 

GlastonSpur

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I think think its quite impressive that we only borrowed that much to be honest considering it cost close to £1B for the entire project.

It's simply to get the cash in and the work started, refinancing was always going to happen. Nothing new on naming rights.
Yes. 10 months ago the club said "... we shall be converting this development facility, which currently expires in April 2022, into notes with a mixture of debt maturities."

On the amount owed, it's not necessarily as much as £637m. That figure referred to a development facility of up to that amount - not a loan of that fixed amount - which the club has been able to draw on as and when required.

Spreading the repayments over a much longer period of time will obviously reduce the annual cost of the debt servicing, which in turn will reduce any impact on the annual availability of money for the transfers and wages budget.
 
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awop

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It's simply to get the cash in and the work started, refinancing was always going to happen. Nothing new on naming rights.
Don't you find this weird ? Would you not be able to work out better interest rates if the "bank" knew that Nike or someone else is going to put forward xM per year ?
 

GlastonSpur

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Don't you find this weird ? Would you not be able to work out better interest rates if the "bank" knew that Nike or someone else is going to put forward xM per year ?
I doubt it. We're already likely to get the lowest possible interest rates by moving (via the Bank of America) to convert - through a private placement scheme - around £400 million of the debt into bonds with staggered maturities ranging between 15 and 30 years and offered to US investors.

According to The Athletic:

"The move … takes advantage of low interest rates in the US .... Such private placements are typically available to borrowers of a higher credit quality, and so both Tottenham and Manchester United benefited from having an investment grade rating. That has allowed them to borrow over a longer period of time, and at lower interest rates. In contrast, Italian sides Inter Milan and Roma have recently had to issue high yield bonds instead, with shorter maturities."
 

andyox

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I know absolutely nothing in finance but why do these deals always start with a very optimistic window to pay it back, only for them to be refinanced and rearranged a year later ?
Any news on the naming ?
I don't know the specifics of Spurs' financing arrangements, but it's fairly standard for large construction loans to be short term with a higher interest rate, and then re-financed at a lower rate once construction is complete. When you re-finance you no longer have to price in the construction risk (you saw some of those risks bear out in the stadium delays) and you have more secure/immediate revenue flows from the completed stadium. Lower risk equals lower/better interest rate.
 

awop

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I doubt it. We're already likely to get the lowest possible interest rates by moving (via the Bank of America) to convert - through a private placement scheme - around £400 million of the debt into bonds with staggered maturities ranging between 15 and 30 years and offered to US investors.

According to The Athletic:

"The move … takes advantage of low interest rates in the US .... Such private placements are typically available to borrowers of a higher credit quality, and so both Tottenham and Manchester United benefited from having an investment grade rating. That has allowed them to borrow over a longer period of time, and at lower interest rates. In contrast, Italian sides Inter Milan and Roma have recently had to issue high yield bonds instead, with shorter maturities."
Fair enough but still isn't it weird, i couldnt find another example of a recent venue opening without selling the naming rights before it evens opens or at least at the opening.
The closest seems to be the Mercedes Superdome when it was damaged by storm Katrina and years later Mercedes bought the rights after the renovation.
 

GlastonSpur

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Fair enough but still isn't it weird, i couldnt find another example of a recent venue opening without selling the naming rights before it evens opens or at least at the opening.
The closest seems to be the Mercedes Superdome when it was damaged by storm Katrina and years later Mercedes bought the rights after the renovation.
Perhaps there are no other examples. I don't know because I've not looked into it.

The reasons for not yet having announced naming rights could include:
  1. Not having yet found anyone interested in buying the naming rights at any price.
  2. Not having yet found anyone interested in buying the naming rights who meets Levy's demands/expectations.
  3. Having a deal already agreed in principle, but subject to satisfactory viewing figures concerning the first NFL games at our new stadium on October 6th and 13th.
Number 1 is very unlikely. Numbers 2 and 3 are both very possible.

I'd guess that number 3 is the most likely, since these will be the first NFL games ever, anywhere in the world, to be played in a purpose-built NFL stadium outside of the United States. So it makes sense that potential sponsors would be looking closely to see (a) what the level of public interest is, both in the UK, the USA and world-wide; and (b) what the post-game reviews have to say about the stadium's suitability for NFL football and in catering to NFL match-going fans.

People may say, "well, it's only 2 NFL games per year initially, so why would potential naming rights buyers care that much about viewing figures etc?". The answer to this is that a naming rights deal might run for 20 years … and Levy's aim is to have an NFL franchise based in our new stadium, which would mean a minimum of 8 home games per year.