The Londoners rank 10th on the list published last Friday , with a value of £2billion.No other club in the top 20 has a higher debt/value ratio – Inter Milan are close to Spurs with 41 per cent, after which the next highest figure is Barcelona with 15 per cent.
But Plumley explains that the figures may be misleading because they do not take into account interest-free loans from shareholders, and the bulk of the debt has come form Spurs’ lucrative stadium project in any case.“Personally, I wouldn’t worry too much about that number for Spurs“The debt figure that is included in this report is only on interest-bearing borrowings, including stadium debt.
“If you look at some of the other clubs, they have got debt levels of zero but that isn’t true because they are indebted to their owners.“So, you see that it’s quite a high figure compared to other clubs that report. However, in the long run, that is going to expand growth and open up revenue streams.
“As a long-term play, they have got to work through the debt, but provided they can service that, it’s not a problem. “If you’re an investor, you might not see them as that attractive now, but when that debt is paid off and they are earning through the stadium, it will start to look far more attractive.”
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Source: TheEconomist - 🏆 6. / 92 Read more »