Kieran Maguire hails Tottenham after 'brilliant' off-pitch news
Tottenham have made a smart business move by choosing to defer payment on a £175million Bank of England loan.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after the Daily Mail revealed that Spurs had rolled over the loan until next March.
Spurs took out the loan last June in response to financial problems caused by the pandemic.
North London rivals Arsenal meanwhile, who took out a similar £120m loan six months later, have pledged to repay in full this month.
But Maguire lauded Spurs for their decision to delay repayment, insisting that the minimal interest rates laid on by the Bank of England made the decision a no-brainer.
“It simply makes good business sense from Spurs’ point of view,” he told Football Insider correspondent Adam Williams.
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“They do have significant debt following the building of the new stadium. It’s logical to get a cheap loan. If you can do so, brilliant.
“Given the choice of paying 0.5 per cent interest and 3 per cent interest, you automatically go for the lower.
“Arsenal have got less external debt. This could also be part of the charm offensive from Stan Kroenke. Not repaying it would be another stick to beat him with.
“But for Tottenham, with this interest, they’ll have to pay another £875,000, which is peanuts to them.”
Spurs posted a £63.9m loss for the last financial year back in November.
Around the same time, the club forecasted that it could lose up to £150m over the next 12 months.