Paying off club debt v investing in players

[blue_aussie05]

I recently saw that Spurs and Swansea are the only two clubs in the Premier League that are debt free.

If this is true, it's an incredible achievement by Spurs considering how much money they've spent on players recently, and haven't had the cash-cow of Champions League footy to help pay for it.

I believe we still have a debt of around 28m. Is this correct? If so, how long will it take for us to pay this off, and what would be the benefits of us being debt free?

 

[Prevenger17]

That's only the debt we're told about. I'd say Kenwright's coke habit would put us in the region of 280 million in the red.

 

[Tramps_mate]

I recently saw that Spurs and Swansea are the only two clubs in the Premier League that are debt free.

If this is true, it's an incredible achievement by Spurs considering how much money they've spent on players recently, and haven't had the cash-cow of Champions League footy to help pay for it.

I believe we still have a debt of around 28m. Is this correct? If so, how long will it take for us to pay this off, and what would be the benefits of us being debt free?

Er... They got 80 odd million for Bale and have a massive London weighted income..

 

[blue_aussie05]

Er... They got 80 odd million for Bale and have a massive London weighted income..

They got 80m+ for bale but then spunked over 100m on dreadful players

 

[Woolly Blue]

I recently saw that Spurs and Swansea are the only two clubs in the Premier League that are debt free.

If this is true, it's an incredible achievement by Spurs considering how much money they've spent on players recently, and haven't had the cash-cow of Champions League footy to help pay for it.

I believe we still have a debt of around 28m. Is this correct? If so, how long will it take for us to pay this off, and what would be the benefits of us being debt free?

This has been done to death in the "Board" thread mate. I'll leave it for now, but if it descends into a good board / bad board thread, then it's likely to get closed.

 

[blue_aussie05]

I just want to know what the benefits are of us paying off the 28m debt.

How much are we paying off this each year? And how long will it take us to pay it off?

 

[potato]

28 mil? i thought it was around 58 mil? or have they offset the tv money against the debt?

wheres the rooney money kenwrong!!!

 

[bizzaro]

I recently saw that Spurs and Swansea are the only two clubs in the Premier League that are debt free.

If this is true, it's an incredible achievement by Spurs considering how much money they've spent on players recently, and haven't had the cash-cow of Champions League footy to help pay for it.

I believe we still have a debt of around 28m. Is this correct? If so, how long will it take for us to pay this off, and what would be the benefits of us being debt free?

Their lowest season ticket price is higher than Everton's highest.

Its due to their location rather than anything else.

 

[Woolly Blue]

I just want to know what the benefits are of us paying off the 28m debt.

How much are we paying off this each year? And how long will it take us to pay it off?

Most of it is a long term debt. The amount we owed in the last accounts was a bit higher than it was in the previous accounts.
Because we had a fair amount of cash in the bank, our net debt had reduced.

Essentially

Net debt = Amount owed - Cash (or cash equivalents ) in bank.

Businesses run on debt quite happily. It's a bit of an oversimplification, but if we made a profit, we'd have to pay corporation tax. Unless they're plc's, footie clubs aren't run to make a profit, any operating profits tend to be ploughed back into the club by increasing assets, which are normally players

You're welcome.

 

[sd_1992]

I recently saw that Spurs and Swansea are the only two clubs in the Premier League that are debt free.

If this is true, it's an incredible achievement by Spurs considering how much money they've spent on players recently, and haven't had the cash-cow of Champions League footy to help pay for it.

I believe we still have a debt of around 28m. Is this correct? If so, how long will it take for us to pay this off, and what would be the benefits of us being debt free?

they have the cash cow of a billionaire owner...

 

[blue_aussie05]

So is the debt about 28m?

 

[ETID88]

Where's the Jeffers money Bill?

 

[Moomin]

So is the debt about 28m?

Net debt at last set of accounts was 28 million. But, we actually increased our borrowing by a further million to 47 million.

 

[Neiler]

Most of it is a long term debt. The amount we owed in the last accounts was a bit higher than it was in the previous accounts.
Because we had a fair amount of cash in the bank, our net debt had reduced.

Essentially

Net debt = Amount owed - Cash (or cash equivalents ) in bank.

Businesses run on debt quite happily. It's a bit of an oversimplification, but if we made a profit, we'd have to pay corporation tax. Unless they're plc's, footie clubs aren't run to make a profit, any operating profits tend to be ploughed back into the club by increasing assets, which are normally players

You're welcome.

Very much this and we cant pay down the majority of our debt without penalties.

+ Doesnt make sense with inflation.

TBH our debt is now negligible.

 

[blue_aussie05]

In terms of paying off the debt versus investing in players, if the club choose to focus on paying the debt instead of focusing on the team, will this lead to the debt being paid off quicker.

Not suggesting we do this at the expense of not strengthening the squad or first team, but I'm just wondering how it works.

When we eventually pay off our debt, will that leave us with surplus cash for more players, or is that too oversimplified?