Kieran Maguire shares 5x Tottenham financial bombshell and what it means for ENIC
Tottenham are paying five times as much interest on their new loan as they did on their previous arrangement with the Bank of England.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after US outlet Global Capital revealed the new £250million loan on 28 May.
This new refinancing, made via the Bank of America, replaces a £175million loan taken out with the Bank of England last June.
That borrowing was made through the government’s Covid Corporate Financing Facility, a scheme designed to help companies navigate fiscal turbulence caused by the pandemic.
That loan was due to be repaid in March but Spurs chose to kick the cost down the road for another year.
And Maguire explained that Spurs’ new arrangement will have less favourable interest rates.
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He told Football Insider correspondent Adam Williams: “The CCFF loan was at half a per cent whereas these lenders charge about two-and-a-half per cent.
“So going to the CCFF before approaching more conventional lenders was a cost-saving issue essentially.
“Private placements are loans. So this loan is massive but has no implications in terms of ENIC or Daniel Levy in terms of the ability to run the club.
“It’s a bit like me giving you an IOU and you giving me a tenner. It’s just posh finance industry wording for a loan.”
Tottenham posted a £63.9m loss when they release their financial results last November.
Chairman Levy predicted that the club could lose as much as £150m over the course of the pandemic.