Kieran Maguire: Tottenham have agreed £7m-a-year deal running for 30 years
It will take 30 years for Tottenham to pay back their new £250million bank loan.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively after Spurs confirmed they had taken out the loan on 18th June.
The club have paid off the £175m borrowed through the Government’s Covid Corporate Finance Facility with this new arrangement.
Tottenham revealed in an accompanying statement that the deal has a “30-year tranche” and a “bullet repayment in 2051.”
And Maguire claimed that Spurs could even ask for the loan period to be extended past the 2051 date.
“It’s a 30-year interest-only loan,” he told Football Insider correspondent Adam Williams.
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“In 2051, I’m probably going to be dead so I’m not particularly worried about it and I don’t think Spurs fans should be worried about it either.
“It’s £250m at 2.8 per cent interest, so £7m-a-year. The bullet repayment in 2051 means they then have to repay £250m.
“But there’s nothing to stop them going to the bank, explaining they pay the £7m interest every year, and asking them if they’ll kick the loan even further down the road.
“The bank will see they are a low credit risk and are giving them guaranteed cash and they’ll be perfectly happy.
“It’s a lot easier to roll over an existing loan to a client than it is to take on the risk of a new client.”
Tottenham posted a £69.3m loss over the last annual accounting period.
In a an interview with Tottenham TV on 12th June, Daniel Levy claimed there had been “£200m worth of lost revenue” over the pandemic.