Maguire: Tottenham will not meet April deadline for £175m agreement
Tottenham are not in a position to repay their £175million Bank of England loan — but they do have alternative options available to them.
That is according to finance guru and new Football Insider columnist Kieran Maguire, speaking exclusively with the April deadline for repyament fast approaching.
Tottenham took out the loan at a rate of 0.5% in June 2020 to cope with the financial pressure of the Covid-19 pandemic.
Their financial stature meant they were able to borrow from the Bank of England at a relatively low rate, whereas the likes of Burnley and Southampton had to make use of private lenders.
Maguire explains that, although the repayment deadline is on the horizon, chairman Daniel Levy has two alternative avenues to explore.
“I suspect what they will do with the Bank of England loan is one of two things,” he told Football Insider correspondent Adam Williams.
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“Firstly, they could get the Bank of England to kick it down the road for another 12 months. I can see that happening because the Chancellor doesn’t want to be putting financial pressure on companies in the UK because we’re still effectively in recession.
“Alternatively they could persuade their existing lenders to take over the loan and they’d still be paying relatively low-interest rates.
“But I can’t see them being in a position where they will have the cash to repay that £175m.”
A Tottenham source told Football Insider on Tuesday that a big-name sale was “inevitable” in the summer to cope with a possible £150m loss of matchday revenue.
However, Spurs fans will be relieved to hear that there is only a “remote chance” that it will be Harry Kane.