Kieran Maguire issues verdict on Chelsea spending £300m as funds secured
Chelsea will be keen to avoid dipping into their new £300million overdraft facility.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the latest news from behind the scenes in the Stanford Bridge boardroom.
The Financial Times reported on Thursday (21 July) the Todd Boehly’s new regime have raised close to £800m in debt to remodel the club and playing squad.
Around £500m of that figure is made up of a term loan, with the remaining £300m drawn from a revolving credit facility.
Maguire explains that a revolving credit facility, which is essentially an overdraft, comes with debt and that the Blues will therefore only use it if absolutely necessary.
“I think some people are a little bit surprised because they thought Clear Lake Capital would be providing all the capital,” he told Football Insider’s Adam Williams.
“The overdraft is there to be called upon as and when needed. It doesn’t necessarily mean that the money is in the pot.
“Overdrafts make sense. They allow for a lot of flexibility. Just because you have one doesn’t mean you have to use it all the time.
“However, eyebrows will be raised. Loans come with interest. We don’t know the ratest of interest. Every pound paid in interest is one less for the playing budget.
“Chelsea will therefore be keen to keep it down. It isn’t like the loans from Abramovich, which were interest-free.”
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