Why £150m Nottingham Forest windfall explains £80m loan move
Nottingham Forest’s decision to take out an £80million loan has an element of risk attached to it – but an imminent £150million windfall explains their move.
That is the view of football finance expert Dan Plumley, who exclusively told Football Insider that the loan will put the club in a better position financially in the short term.
The Tricky Trees’ stunning performances last season catapulted them into European football, and Crystal Palace’s demotion by UEFA looks set to move Nuno Espirito Santo’s side into the Europa League.
But following their fantastic 2024/25 campaign, the club are attempting to manage a balancing act of improving their squad, whilst also hanging onto their best players.
Forest are attempting to sign Aston Villa ace Jacob Ramsey amid interest from Tottenham in Morgan Gibbs-White.
However, whilst the club’s summer transfer business dominates headlines, Forest have quietly taken out an £80m loan.
Nottingham Forest reasons for loan explained
Speaking exclusively to Football Insider, finance expert Plumley explained the club’s reasoning for taking out what is a considerable loan with interest payments of 8.75% (£7m per season).
The senior lecturer from Sheffield Hallam University cited the desire to pay off other loans that were “at more of a cost” to Forest, and that as long as the club were a Premier League club, that a loan like this was “nothing unusual”.
Plumley said: “There’s always risk built into any kind of loan like this, especially at interest rates like that. But again, it’s nothing unusual in football.
“It is the first thing to put forward. We’ve seen clubs do this quite a lot in recent years, securing it against broadcasting payments, securing it against assets like the stadium, which is the case with the City Ground.
“In terms of why now, most of that money, I think 55% of it is going to pay off a previous loan from rights and media funding, which was at more of a cost to the club.
“Doing this brings their interest costs down and helps that equation out.
“They’re not too worse off in the immediate term in terms of doing that. The factor over the top of that is it’s absolutely fine in the here and now when you’re a Premier League club and the broadcast money is good.
“Forest will take about £150m potentially in TV money when we see those numbers because we’re in an enhanced deal now off the back of the new deal that’s just started.
“So that’s all okay when you are a Premier League club.”
Nottingham Forest battling to keep Murillo
Whilst the £80m loan taken out will largely be used to pay off existing debts, the Midlands side will be hoping their boost from qualifying to Europe will be enough to retain several stars this summer.
Murillo is a target for Real Madrid, but Forest are desperately keen to avoid parting with the Brazilian centre-back.
Anthony Elanga has already departed for Newcastle, whilst Gibbs-White‘s future remains up in the air, and losing their talisman at the back would be a massive blow for Santo and his side.