Nottingham Forest’s new £80m deal is eye-watering
Nottingham Forest need cash to agree new signings after making an £80million move at the City Ground.
Evangelos Marinakis has made a series of moves to convert debt into equity since securing his takeover in 2017.
It was confirmed last week Marinakis has injected £17million into Forest in a further commitment to the club.
The Premier League side have also taken out an £80million loan with Apollo Management, a New York-based global asset management company.
The three-year loan will operate with an interest rate of 8.75 per cent.
Finance expert Stefan Borson exclusively told Football Insider Forest will have to pay around £7million of interest on the loan per annum.
Nuno Espirito Santo’s side are currently set to play in the Europa League next season after Crystal Palace were expelled from the competition.
Forest have so far signed Igor Jesus and Jair Cunha from Botafogo this summer, with those deals worth in excess of £25million.
Nottingham Forest set to pay £7m annual interest
Borson revealed Forest need cash to be able to pay the bills at the City Ground following the financial loan update.
He told Football Insider: “It’s just cash flow.
“Clubs lose money and they need cash, so they’ve got to pay the bills. They have got to have the cash to make signings.
“They are not generating significant profits such that they don’t need third-party investment.
“That investment either comes from the shareholders in the form of either equity or shareholder loans.
“Shareholder loans are now of fair market value under the new rules, so they’re less attractive than they used to be.
“So, there’s some thought that maybe the best thing to do is to get third-party money in. Third-party money can come in. It is more expensive.
“This money is costing 8.75 per cent in interest, so it’s not an insignificant amount of money. It’s around £7million of interest per annum.
“But they need the money because they need to be able to have working capital in the business to pay the bills.”
Nottingham Forest in pole position to complete Jacob Ramsey deal
In terms of a potential incoming at the City Ground, Football Insider revealed on 20 July Forest are the frontrunners to sign Jacob Ramsey from Aston Villa this summer.
However, Nuno’s side are facing competition from the likes of Everton, who are planning an ambitious move for the midfielder as they aim to strengthen David Moyes’s squad.
Football Insider revealed on 18 July Villa could accept a £50million offer for Ramsey over the coming weeks.
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