TOTTENHAM have refinanced more than £600million of loans through private bonds in the USA to secure their financial future.
Spurs moved into their new £1billion Tottenham Hotspur Stadium in April, financed in part through the borrowing of £637m from Goldman Sachs, Band of America and HSBC which needed to be paid back by April 2022.
This week, though, a reported £525m of the debt was converted into bonds which will mature between 2034 and 2049.
Speaking to the Financial Times, chairman Daniel Levy explained that the idea is to provide Spurs with the chance of playing on a more level playing field with the European powerhouses.
But he insists the club’s financial planning will “have no bearing” on their approach to the transfer market with the deal not freeing up more funds to sign or pay players.
He said: “I understand, as I am a fan, clearly you want to win on the pitch. But we have been trying to look at this slightly differently, in that we want to make sure we ensure an infrastructure here to stand the test of time.”
The businessman also added that the refinancing “will have no bearing on how we run the club… and no bearing on those types of short-term movements [like transfers]”.
We could easily have spent more money on players. Who knows if that would have brought us more success or not.
Levy loosened the purse strings in the transfer market this summer, breaking the club’s record transfer fee.
After 18 months without a fresh face coming through the door, Spurs signed Tanguy Ndombele for an initial £55million – the deal could rise to £65m – while Jack Clarke came in for £8.5m and Ryan Sessegnon for £25m.
Giovani Lo Ceslo also came in on loan for £14.75m, with the club arranging to pay Real Betis a further £37.5m to keep him should the North Londoners qualify for the Champions League next season.
Spurs have qualified for Europe’s elite club competition for the last four seasons but Levy admitted if he had spent the big bucks for a longer period, it may well have brought silverware.
The club last lifted a trophy in 2008, beating Chelsea in the League Cup final.
He added: “We could easily have spent more money on players. Who knows if that would have brought us more success or not.
“The right approach is to build from the bottom up. There is no quick fix to becoming a much more significant global club.”
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And the Spurs chief is also keen to make the new stadium the “Madison Square Garden in London” with sports, concerts and other events at the arena, just like the New York venue.
Deals have already been arranged for two NFL matches there each year for a decade and an annual Saracens rugby union game for the next five years.
Levy added: “Clearly if you have a stadium of this magnitude and quality, to only have 25 to 30 games a year being played by Tottenham Hotspur, it’s not making use of the capital we have invested.”
This post written by Joshua Jones originally appeared on Football news - transfers, fixtures, scores, pictures | The Sun. Read the full post here.