Finance Expert reacts to Tottenham debt with positive after reveal
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at Tottenham...
Dan Plumley has insisted that it is positive that Tottenham took advantage of good financial rates given their league-topping debt was revealed.
It comes after it was revealed that Spurs are now paying interest fees of over £20million, at an average rate of 2.81% after the 2021/22 accounts highlighted borrowings of £852.6million.
The finance expert admitted that the figure is high, but the stadium can generate money that can cover its face in terms of paying those back.
“It’s the right way to look at it,” he exclusively told Tottenham News.
“The overall figure is quite high, yes, but think about the money the stadium can generate off the back of that, and it more than covers its face in terms of paying those interest payments.
“The average rate is low compared to other third-party lenders we’ve seen, and Spurs took advantage of some favourable market conditions in the pandemic and some good rates that were available, that weren’t available to other clubs because of how they’ve managed their business over the years.
“When you throw all of that into the mix, that’s a really good rate against other market rates, the stadium will pay itself back in time, in the long run, and consider the bigger picture, don’t just focus on the absolute number, it’s a relatively good bit of business from Spurs.
“We know what they’re trying to do with that stadium in the long run, and that’s already seeing some success, so it goes back to the narrative of how well they have been run financially.”
In other Tottenham news, Plumley has also explored how Spurs have jumped ahead of Manchester United