Kieran Maguire reveals Southampton paying ‘£180,000-a-week’ as ‘biggest risk in football’ explained
Southampton are paying such high interest on their loan from MSD Holdings because of the threat of relegation.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Saints’ recently-published 2020-21 accounts.
Southampton recorded a £13.7million loss for the financial year, per an official bulletin on 20 March.
The accounts also detail the £78.8m loan that the club took out to deal with pandemic-related losses in 2020.
Southampton are in their ninth consecutive Premier League season and are 11th in the current standings.
But Maguire explained why the threat of relegation means the south coast side are paying “£180,000 per week” in interest on the MSD loan.
“The issue with the loans is the interest,” he told Football Insider‘s Adam Williams.
“They are paying £180,000 per week in interest on the loan from MSD.
“The rate that they are paying, 9.14 per cent, is indicative of the perception of risk for Southampton in terms of relegation.
“If you look at the loans Man United and Spurs have, they are paying from 2.5 to 3.75 per cent.
“The biggest risk for a football club is relegation and you reflect that by charging a higher rate of interest.”
Southampton have changed hands since they took the loan from MSD Holdings, with Dragan Solak acquiring 80 per cent of the club in January.
Ralph Hasenhuttl’s side, who have lost their last five matches, are next in action at Leeds United on Saturday (2 April).
In other news, Maguire tips influx of talent as Southampton target two mega-money deals.