'The Deal Is...Really Clever' - Exclusive: Finance expert lays bare £812m Spurs reveal
The Tottenham hierarchy are handling the club’s £812million’s loan debt extraordinarily well, according to Kieran Maguire.
The football finance expert and new Football Insider columnist gave his breakdown of Spurs’ financial situation in exclusive conversation with correspondent Adam Williams.
The club borrowed £637m from HSBC, Goldman Sachs and the Bank of America to finance the construction of their brand-new state-of-the-art stadium, plus a further £175m from the Bank of England to insulate them from the economic impact of the coronavirus pandemic.
But Maguire believes clever financial management on the part of Daniel Levy and co means that Tottenham are actually in a very good place financially, despite the eye-watering loan debt.
“It will be hurting them,” he told Football Insider when asked about the financial implications of not being allowed to have fans at their new stadium.
“But the deal they’ve got from the Bank of England in terms of the loan, borrowing the money at 0.5% interest is really clever. It means they won’t have any problems in the short term in terms of paying outstanding instalments, transfers, the wage bill and things of that nature.
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“That’s good because you don’t want unhappy players and you don’t want a reputation for not paying your bills on time.
“In terms of the long-term repayments of the loans, £627m is the total value of the loans for building the stadium. That’s not an issue because they’ve renegotiated those, they don’t have to be paid until about 2037. And they are interest-only loans, so they’re actually in a pretty strong position.”
While they may have found a way to manage their debt, Spurs still announced losses of £63.9m in 2020 despite having the best pre-tax profits across the Premier League in 2019 at £87.4m.
The club hierarchy have also predicted they could lose up to £150m across 2020-21 if stadiums stay closed to fans.