Date: 7th March 2017 at 3:02pm
Written by:

Guest blog from Ronan


A bigger capacity is quite obviously needed if spurs are to stay with the big boys long term. But the bizarre cost of this new stadium raises more questions than it answers.

One in particular: how does £800m debt (+ interest) get serviced without seriously curtailing Spurs’ transfer/wages budget for years to come?

No clarity at all was requested on this question from Levy, even though the THST went in there knowing that the new Lane is going to be the most expensive club ground ever built in Europe. The most expensive by a country mile.

But it’s not only those dummies who are remiss; even professional football journalists are not questioning why Spurs have decided to lumber themselves with this unnecessarily huge amount of debt.

The ostensible reason makes no sense: hosting twenty American football games over ten years would not bring in much more than £20m.

There is only one speculative suggestion out there that seems to square the circle: that ENIC are targeting a very specific type of buyer: a giant US sports consortium; the kind that would be able to afford the huge sum necessary to buy a new franchise from the NFL.

Why else would ENIC have gone to this enormous additional expense of fitting the stadium out for American football, in particular the extremely costly hi-spec retractable pitch? Certainly wouldn’t have been necessary in order to entice a Chinese or Arab buyer. Or even a US buyer, come to that.

But clearly there’s no guarantee this very specific type of US organisation is going to come forward and pay ENIC whatever they’ll be asking; the only type of buyer that would make all the additional stadium costs make sense.

Nor is there any guarantee that, even if this type of US organisation did buy Spurs, that they’d fund THFC to anything like the same extent as the new London NFL franchise they’d have had to pay so much to purchase.

More questions than answers.

But the biggest remains: £800 million + interest. How is that level of dough going to be paid off, while keeping spurs competitive at the top of the PL?

 
Comments
  • Aside from cerebrospinal fluid, what's on your mind?

  • Urbane Sturgeon March 8, 2017 at 11:32 pm

    Is it 400 mil the actual stadium & 400 mil the Sainsbury’s/blocks of flats/Museum/Hotel/restaurants/shops etc. The idea being that the add ons pay for themselves and more in the long term? I’ve no clue, just chuckin that out there.

  • Citizen Smozz March 8, 2017 at 8:33 pm

    Caspurs♿️
    Just read a little of the last blog, Barkley or Zaha, hmmm.
    If that was the only choice on offer, I’d prefer Barkley. All those who said Zaha (you know who you are) are clearly wrong.
    Fankyew. 😘

    Zags is unplayable when in full flight and with pooch’s coaching he could turn into a world class player in time imo 😊

    • Citizen Smozz March 8, 2017 at 8:34 pm

      “Zaha”

  • legover March 7, 2017 at 7:22 pm

    Quick question. Stadium build budget was £400 million. Now it is said to be £800 million. I have heard of budget variances but this sets new standards of duplicity. So did the contractors undercook the original quotation? Did Levy not secure a fixed price contract with a contingency?Are they actually building two stadiums instead of one? Has the capacity increased to 122,000? How is it possible for Levy to drop this into the public domain without a majpr investigation by all parties into just wtf is going on… is the £400 million extra to pay for titanium hips for Lamela so that he can run in a straight line instead of like a demented chicken?

    • Harry Hotspur March 7, 2017 at 7:28 pm

      My mind has frozen with the size of the cost.

    • SpurAndy 🍒π March 7, 2017 at 7:31 pm

      I expect all to be revealed in the next series of Grand Designs. Kevin will be raising eye brows and giving knowing looks. Can’t wait.

  • caveman March 7, 2017 at 7:14 pm

    Sounds all very negative. Spurs is a multi million pound industry capable of earning massive amounts of money. It may be possible to have two owners of the set-up, one NFL oriented and the other football. One could be freehold and the other leasehold.
    As long as Levy and that old boy Lewis are not involved any longer we could have owners that actually rival the arabs and others in the transfer market. Spurs aren’t going anywhere. COYFS.

  • Caspurs♿️ March 7, 2017 at 7:02 pm

    Just read a little of the last blog, Barkley or Zaha, hmmm.
    If that was the only choice on offer, I’d prefer Barkley. All those who said Zaha (you know who you are) are clearly wrong.
    Fankyew. 😘

  • Gloster1861 March 7, 2017 at 6:39 pm

    Don’t worry lads, Levy will erect a Blue Plaque on the New NFL Stadium.

    Near this site once stood White Hart Lane
    The home of Tottenham Hotspur.
    Football club from 1882-2018

    • is Gascoigne gonna have a crack? March 7, 2017 at 6:41 pm

      I think it might be chain ourselves to the crane time….SOS….save our spurs!!

  • sideshowbob March 7, 2017 at 6:29 pm

    The UK’s car manufacturing is set to hit all time highs,, well since 1972 anyway… Problem is that it is Jaguar/Land rover, Nissan, Toyota, Honda and Vauxhall/PSA… not really British cars, although some will always be British Brands, as the costs increase to supply Europe with these brands, the game will have to change

    • jfdit March 7, 2017 at 6:38 pm

      They are british brands which have foreign owners, they’re also thriving due to investment

      if we have tariffs so will the imported cars from EU, the discounted £ against the Euro will at the moment offset the tariff which under WTO most favoured nation rules will be 10%

      maybe we’ll all be buying Jags instead of unreliable bmws & mercs

      we have a massive trade deficit with the EU, if they decide to go WTO route with no deal, they’ll be worse off massively in addition to the halt in our payments to their ponzi scheme

      • MysteriousStranger March 7, 2017 at 6:54 pm

        All be buying Jags? Only if they’re at Trabant/Lada prices!

  • is Gascoigne gonna have a crack? March 7, 2017 at 6:26 pm

    The NFL will soon have an English franchise in it. Our new ground isnt really going to be for us at all. It won’t be called White Hart Lane, its being built to be the home stadium to the Eventual english NFL franchise. Itl just happen to have a football team playing there. We have been lied to, enic and levy have kept the real reason for this project hidden from the fans, this ain’t about the future of spurs, we will have lost our identity. The cost only makes sense in this context. Spurs die in may. For me at least cos many will see that as dramatic but they more this unfolds, the worse it gets.

    • Gloster1861 March 7, 2017 at 6:34 pm

      You’re right, that’s why White Hart Lane will be dropped from the name. Probably be the Stars and Bars Stadium , home of the London Yankees.

      • is Gascoigne gonna have a crack? March 7, 2017 at 6:36 pm

        Makes ya shudder dont it??:-!

  • Gloster1861 March 7, 2017 at 6:14 pm

    The very cunning Lord Pannick who introduced the amendments, also led the High Court case.

    In the court case he argued that it must be referred to parliament for approval to trigger because it is irrevocable once triggered.

    Now he is arguing in the Lords that Parliament should get to vote on the outcome of the negotiations because it is NOT irrevocable, and if they don’t like the outcome have a second referendum.

    What a scheming cnut. As Nigel Lawson pointed out, trying to use his cake and eat it too.

  • sideshowbob March 7, 2017 at 6:12 pm

    jfdit
    ford don’t give two fucks about UK workers, like most global business if they can cut costs by going to cheaper labour spots they do it, Jaguar/Land Rover are now struggling for capacity with new models coming on stream, the business is there if you get the product right, the best British cars are superb at the moment
    maybe these factories can be sold to them

    Jaguar is owned by TATA

    • jfdit March 7, 2017 at 6:14 pm

      no not all, I think anyone working here from the EU will be permitted to stay, they will be restrictions on benefits which we couldn’t impose due to EU laws

      FFS Bruxie we have rapists, murderers & other serious criminals we can’t deport at the moment, I don’t think anyone will be required to leave, the eastern european states have been exporting their unemployment problems to us, they may not like it but this will stop

      • jfdit March 7, 2017 at 6:14 pm

        reply to bruxie

      • Bruxie March 7, 2017 at 6:19 pm

        We’ve got our criminals in Spain….

        I don’t want the bastards back.

        Arrest and deport. We could do that now if we had the balls.

        • jfdit March 7, 2017 at 6:23 pm

          there should be an agreement immediately to allow people working in countries to remain, if not working then if self funded/retired same again they can remain

          I spend half my time trying to stop my sites getting broken into, invariably eastern european daytrippers

          police say it’s beyond their abilities to stop it, fuck easy jet & ryanair

      • Gloster1861 March 7, 2017 at 6:20 pm

        The nub is that it was meant to be free movement of labour, not just free movement. We’ve now got Romanian women selling the Big Issue in every town in Gloucestershire. Apparently that counts.

        • Bruxie March 7, 2017 at 6:25 pm

          And English benefit claimers no doubt?

          Third or fourth generation single parent benefit claimers who get housing and all the rest of our lovely handouts.

          At least MOST of our iimmigrants want to work. It’s the natives who annoy me.

          • Gloster1861 March 7, 2017 at 6:30 pm

            Yep, but I’d rather buy the Big Issue from someone who is unemployed and who was born here than encourage unemployed people to come over and ADD to their numbers. If that makes me a bastard, so be it.

            • MysteriousStranger March 7, 2017 at 7:02 pm

              Though could I be right in thinking you probably wouldn’t buy a copy from either? Charity begins at home, etc.?

              I don’t think people really want to sell the Big Issue, wherever they’re from.

              • Gloster1861 March 7, 2017 at 7:11 pm

                Nope. I buy one from John and his dog Sally who stands outside the boarded up Bus in Gloucester.

                • Gloster1861 March 7, 2017 at 7:11 pm

                  Fuck! BHS!

                  • MysteriousStranger March 7, 2017 at 7:18 pm

                    Do you think John and his dog is more, or less vulnerable than the Romanian women selling their copies? You evidently value his and his dog’s lives more.

    • sideshowbob March 7, 2017 at 6:20 pm

      Land Rover is Jaguar group,therefore also owned by TATA, bit of a disguise to call them British,,

  • sideshowbob March 7, 2017 at 6:02 pm

    Right wing looking strong over here for the upcoming elections…

    Frexit ? possibility…

    • sideshowbob March 7, 2017 at 6:05 pm

      same ploy,, control of borders, restore national pride, Etc… could get very messy

    • jfdit March 7, 2017 at 6:17 pm

      & land rover, they took that business off BMW who just wanted the mini & the 4×4 tech

      Frexit – I don’t think so, the euro is at the root of the problems it’s helping Germany’s exports but hindering the others

    • Gloster1861 March 7, 2017 at 6:23 pm

      I think that all the parties will cooperate to stop Marine. Fillon will be allowed to stand to split the right wing vote.

      Macron will win, as he is another Tony Blair type. A con man with no policies except winning.

  • Gloster1861 March 7, 2017 at 5:52 pm

    Is Spurstacus about?

    • Bruxie March 7, 2017 at 5:55 pm

      I’m Spurtacus!

    • Harry Hotspur March 7, 2017 at 6:18 pm

      He’s been arrested for interfering with a grapefruit.

  • sideshowbob March 7, 2017 at 5:48 pm

    Very near, yet very far
    very soft, yet very clear

  • Gloster1861 March 7, 2017 at 5:48 pm

    Baroness Deech, a crossbencher, has made a most reasoned speech. The Remainers should be ashamed for their duplicity, trying to pretend this is about democracy and not trying to reverse the referendum. As she said, she would rather trust the British government than 27 foreign governments.

    • Bruxie March 7, 2017 at 5:59 pm

      This is about protecting existing immigrants in the UK – not overturning the referendum. – It’s an Amendment issue!

      FFS

      • jfdit March 7, 2017 at 6:04 pm

        anyone that’s been here 5 years has the right to remain anyhow, I think we should wait to get the rights of UK citizens in the EU secured before giving blanket guarantees to all & sundry, the EU are the ones playing silly buggers on this matter

        • Bruxie March 7, 2017 at 6:08 pm

          So you agree that if Latvia – or some other small country vetoes the proposal – we’ll kick all our Doctors, Nurses and anyone else that has been here less than five years?

          We promised a lot to a lot of people who have promised a lot to us in the UK.

          What sort of bargaining tool is that?

      • Gloster1861 March 7, 2017 at 6:12 pm

        That’s the pretext. As has pointed out, the very cunning Lord Pannick who introduced the amendments, also led the High Court case.

        In the court case he argued that it must be referred to parliament for approval to trigger because it is irrevocable once triggered.

        Now he is arguing in the Lords that Parliament should get to vote on the outcome of the negotiations because it is NOT irrevocable, and if they don’t like the outcome have a second referendum.

        What a scheming cnut.

        • Bruxie March 7, 2017 at 6:15 pm

          Gloster.

          There ain’t no going back.

          It’s an amendment.

        • jfdit March 7, 2017 at 6:47 pm

          there’s clearly an agenda going on with the Lib tards & a few coniving groups

          they want to stop it or make it fail, they’re more concerned with cheap cleaners, gardeners & rent boys

          • Gloster1861 March 7, 2017 at 7:09 pm

            Absolutely. Pandering to our buddies in Europe, fcuk the proles at home.

          • legover March 7, 2017 at 7:17 pm

            No question the neo-libs are at work here looking to create a senario in which the negotiations with the EU enter some endless loop system of negotiation and renegotiation ad infinitum.This demonstrates the utter arrogance and self entitlement the previous elitist lovvies in power across Europe including the UK felt and still feel they have to determining everyone’s future despite a democratic vote by the people that they are supposed to serve. Same in the USA with Trump.

  • Bruxie March 7, 2017 at 5:17 pm

    Where is Lewis in all of this?

    Is this his legacy as an aging Spurs fan?

    One can hope.

    • jfdit March 7, 2017 at 5:41 pm

      on his boat or the golf course, he’s 80 now – is it too much to think there’s more to life than making money

  • Gloster1861 March 7, 2017 at 4:35 pm

    The House of Lords are currently attempting to wreck Brexit. It’s time to cull at least half the Liberal Democrats. Ridiculous they have so many Lords and just 8 MPs.

    • Gloster1861 March 7, 2017 at 4:36 pm

      They’ll be coming to blows soon.

      • 61SpursNut🌰 March 7, 2017 at 4:53 pm

        The amendment has suffered a 3-1 defeat.

        • UnkleTaff March 7, 2017 at 5:03 pm

          Crisis averted. Phew!

          • Bruxie March 7, 2017 at 5:20 pm

            No EU funding for South Wales then.

            • DAVID March 7, 2017 at 5:29 pm

              Ewe funding

            • Bruxie March 7, 2017 at 5:29 pm

              Ford – Bridgend?

              Lovely.

              • jfdit March 7, 2017 at 5:33 pm

                the EU funded ford to move the transit factory to Turkey from southampton

                Every transit owning builder I deal with moan about the build quality now, loads of issues esp with doors falling off

                • Bruxie March 7, 2017 at 5:40 pm

                  That’s a quality issue – not a funding issue. Bad management.

                  Without EU funding S.Wales will be a wasteland.
                  May won’t give a penny to a traditional Labour heartland.

                  Wait for the North East of England to join them.

                  • jfdit March 7, 2017 at 5:46 pm

                    ford don’t give two fucks about UK workers, like most global business if they can cut costs by going to cheaper labour spots they do it, Jaguar/Land Rover are now struggling for capacity with new models coming on stream, the business is there if you get the product right, the best British cars are superb at the moment

                    maybe these factories can be sold to them

                    • Gloster1861 March 7, 2017 at 5:51 pm

                      The sale of Vauxhall is curtains for the British jobs. We will see production moved to France and other countries because it is politically advantageous.

                    • Bruxie March 7, 2017 at 5:53 pm

                      I was involved in the Vauxhall move from Luton to Ellesmere Port…trying to help stabilse the Luton economy after they left. The supply chain took a hammering. The PSA buy out will devastate the area come 2025. Not long in economic terms.

                      GM. Ford.

                      American.

                      Says it all.

                      They don’t want a thriving EU or UK.

                    • jfdit March 7, 2017 at 5:58 pm

                      Gloster it will be cheaper for them to lay off Vauxhall staff but the frog’s labour laws are really protective so much more expensive to produce cars there, I think they’ll keep the factory in UK going if it makes money

                      France under the socialists will continue to go backwards really fast, too expensive for employers nowadays

        • Gloster1861 March 7, 2017 at 5:05 pm

          That was just Amendment One!

          • 61SpursNut🌰 March 7, 2017 at 5:17 pm

            It won’t get any better for them.

    • jfdit March 7, 2017 at 4:55 pm

      let them waffle on full of their self importance, the elite don’t like their boats rocked

      last summer the working classes spoke, they’ve had enough of the metropolition elite & large co’s holding their wages down with mass immigration

      not a fan of the EU myself, they’re cut of the same cloth as the old soviet union

      • Gloster1861 March 7, 2017 at 5:07 pm

        Time to abolish these old farts.

        Power without responsibility is always wrong.

        • jfdit March 7, 2017 at 5:15 pm

          The whole establishment is bloated beyond belief & full of self interest, lots of ex-lawyers too – cunts

          I read an article comparing the top brass in our MOD with the american one, bloated beyond belief especially in the Naval dept, they send troops into battle with second rate equipment all the same, don’t give a fuck

          • Bruxie March 7, 2017 at 5:27 pm

            A lot of the MOD are retired officers from all three forces. They couldn’t run a contract to save their lives. Needs a clean out.

            • jfdit March 7, 2017 at 5:37 pm

              I had mates in afgan & Iraq, american special forces wouldn’t let them bring half their brit kit on missions, unreliable as fuck especially the radios, the yanks were cool though gave them decent boots & rations

    • Bruxie March 7, 2017 at 5:23 pm

      You do talk rubbish, sometimes.

      • UnkleTaff March 7, 2017 at 5:33 pm

        Spot the redundant word in the above sentence.

        • Bruxie March 7, 2017 at 5:41 pm

          Taff.

          • Bruxie March 7, 2017 at 5:43 pm

            And more Taffs.

  • Gloster1861 March 7, 2017 at 4:31 pm

    Do we believe this 800 million figure?

    Is it possible that Levy is deliberately inflating the figure for various reasons. To show the Mayor and Harringey up if they don’t divvi up the dosh for the infrastructure needed being one.

    Smoke and mirrors?

    • McG ⚽⚽ March 7, 2017 at 4:38 pm

      Dunno about that, but 800 mil is quite a jump from earlier figures banded around. Our turnover has increased nearly threefold over last ten years, cant see too much trouble ahead either way

      • Gloster1861 March 7, 2017 at 4:40 pm

        Jfdit also suggested Levy was quoting a high figure to manipulate the loan negotiations.

      • Ronan March 7, 2017 at 4:45 pm

        Very sanguine, but not in any way reassuring or convincing. Over the next few years the club will have to sell out fully 800 million quid, according to Daniel himself. None of our rivals will have that burden and they’re already out of sight of us in terms of what they pay in wages.

        • Ronan March 7, 2017 at 4:46 pm

          * shell out

        • UnkleTaff March 7, 2017 at 4:53 pm

          …and yet most of them are currently below us in the league.

          • Gloster1861 March 7, 2017 at 5:08 pm

            I blame Poch for that, jumped up whippersnapper. Hasn’t he heard of the Sky Four?

    • Gloster1861 March 7, 2017 at 4:39 pm

      For one thing, the high figure allows Levy to plead poverty in the transfer market next summer.

  • Harry Hotspur March 7, 2017 at 4:13 pm

    Crown Green Chicken Badgers

    • UnkleTaff March 7, 2017 at 4:14 pm

      …in red shirts.

  • McG ⚽⚽ March 7, 2017 at 3:50 pm

    Well, I’m guessing the additional revenue streams and additional TV money will get us over the line. I recon it’s worth taking a look at income levels when goons were in the throws of building theirs & compare that with income levels now. Interest rates are also at a low, so it’s not all bad.

    • Harry Hotspur March 7, 2017 at 3:58 pm

      The TV money creeps up every year, but we never run with a surplus and that’s with our current operating costs. Which increased the day we began this shaggy dog tale about 8 years ago.

      • McG ⚽⚽ March 7, 2017 at 4:11 pm

        Yeah, just been looking at goons turnover, around 63 mil in 2001 (2nd year of their build), that’s risen to 191 mil in 2016. I guess we can expect our revenue to triple over a similar period. Levy is far far from stupid, the last thing he’ll do is leave us with unservicable debt, works for no one. They also spent 520 mil in total, not 400. Of course we’ll have to be careful for 8-10 years, unless we get bought by a sugar daddy. Personally, I’m quite happy with what’s going on, recon it’ll come good, and not worth worrying about right now.

        • McG ⚽⚽ March 7, 2017 at 4:20 pm

          Correction, was looking at goons last 6 months, revenue sat at 350 mil end of 2016. So over 15 years turnover has increased by 5.5 times. Our new stadium isn’t 5.5 times the cost of theirs, it’s not even double. We’ll be fine, just have to be a little careful, same as everyone else. Financing will also have been secured at better rates than goons…

  • jfdit March 7, 2017 at 3:31 pm

    was having a read of the spurs report blog earlier, intelligent blog bit stuffy in the comments but interesting – is that your blog Ronan?

    I was looking at the feasibility study by KPMG done by council at the public enquiry, the entire scheme is costed at around £750m, that’s the flats, ground etc – everything bar the hotel I assume as that came back into the scheme after the enquiry – I’ll assume that’s where some of the extra £50m is going

    my concerns are whether the second phase is viable risk wise, in the KPMG report Levy claims the profit margin was only 1.5% (normal margins permitted before affordable housing contributions are payable are 20%) this was also before any alleged cost overruns mentioned to the THST

    my question to Levy is why tie up an extra £400m in time, money & investment if the return was only 1.5% – all that risk for an upside of £6m, he’d get more out the deal by selling the remainder of the site to a house builder

    this proves to me that most of what’s in the public domain is complete bollox, the truth will come out

    • Ronan March 7, 2017 at 4:39 pm

      It’s not my work, jfdit, far too intelligent. But a great read for anybody interested in this question. He, yourself and H seem to be among the only people in the country who are.

      Amazing, really. By far the most expensive club stadium ever built, but no interest in how spurs will pay for it. Much less remain competitive while doing so. Arse lost most of their best players during the years they were paying off the emirates, a stadium of the same size but one that cost far less.

      • jfdit March 7, 2017 at 4:46 pm

        I questioned the financial viability of the residential elements on here back in 2008 when the NLD scheme first saw daylight, since then the property market has nearly doubled in London

        My primary business is property so I have an insight into the resi elements in regards to build cost, gdvs and planning issues

        My view is Levy’s overstating the costs & understating the profits, hope I’m right or we’re on rocky road

        • Ronan March 7, 2017 at 4:48 pm

          I hope you’re right too, mate, and thanks for sharing your insight. Please keep us informed.

  • MysteriousStranger March 7, 2017 at 3:05 pm

    So, who here knows what the going rate for a retractable pitch is?

    • Harry Hotspur March 7, 2017 at 3:06 pm

      Is the answer: A crippling amount? And what have I won?

    • AntSpurs March 7, 2017 at 3:06 pm

      Not sure but I reckon Taff could pull in a good crowd for the bowls. Gotta be worth a couple a quid.

    • Horndog 😎 March 7, 2017 at 3:07 pm

      Not I, says he. But £800m in debt is a massive migraine.

    • UnkleTaff March 7, 2017 at 3:54 pm

      jfdit
      a mate of mine is a partner at our QS firm Arcadis, he reckoned no extra cost as Levy had taken over the project management himself saving the club that element
      was on budget and time last time we spoke about it

      • MysteriousStranger March 7, 2017 at 3:58 pm

        The question is “what’s the going rate for a retractable pitch?”

        I’m interested in a figure. Not whether Levy cut back on biscuits to help pay for it.

        • UnkleTaff March 7, 2017 at 4:01 pm

          I asked the same question yesterday and that is the reply I got.

          • jfdit March 7, 2017 at 4:30 pm

            my understanding is the costs obviously increased but Levy decided to project manage the 1st phase of the build himself not engage professionals to do this, this obviously saved money which I assume cancelled out the costs overrun

            • Gloster1861 March 7, 2017 at 4:33 pm

              Is Levy up to project managing the build? This required experienced know-how, not for an amateur.

              • jfdit March 7, 2017 at 4:35 pm

                I don’t think the formwork stage will take a great deal of management, the contractor & structural engineers will make all the key decisions, I believe they have a fixed price contract too

        • jfdit March 7, 2017 at 4:34 pm

          I laughed nervously when I heard Levy was project manager but was relieved to hear that there hadn’t been any issues & things were progressing at pace, one concern my friend had was that the build schedule was a tight fit timescales wise

  • MysteriousStranger March 7, 2017 at 3:03 pm

    Yeah.

    • AntSpurs March 7, 2017 at 3:05 pm

      Ladies first

      • MysteriousStranger March 7, 2017 at 3:06 pm

        I’m so sorry, I didn’t mean to barge in front of you.

        • AntSpurs March 7, 2017 at 3:11 pm

          No bother, seeing as it’s you.