Tottenham have taken out a £175 million loan from the Bank of England to ease the financial pressure on the club following the coronavirus outbreak.
The pandemic has begun to take its toll on the sport financially, with the club’s football pyramid furloughing staff, players expecting wage deferrals and cut transfer fees.
Spurs were one of a handful of Premier League clubs to announce plans to lay off non-playing staff to balance the books, but reversed the decision two weeks later after heavy criticism.
Tottenham chairman Daniel Levy/Chris Brunskill/Fantasta/Getty Images
According to The Athletic, Spurs have borrowed £175m from the Bank of England after qualifying for the government’s Covid Corporate Financing Facility (CCFF).
The CCFF is a government scheme set up to help large, corporate businesses affected by the coronavirus to ease cash flow pressures.
Successfully applying for the scheme came with strict criteria, requiring firms to have an investment-grade credit rating – meaning they have the ability to meet financial commitments – in addition to the UK. Also a material contribution to the economy.
? Team building exercises and recovery work during one of our recent sessions? #THFC ⚪️ #COYS pic.twitter.com/sxubFSfDG4
— Tottenham Hotspur (@SpursOfficial) June 4, 2020
Along with Spurs, The Athletic report that Manchester United will be the only other Premier League club to meet the CCFF criteria. The Red Devils recently borrowed £140m from their revolving credit facility.
The loan comes with a low commercial interest rate, and Spurs will have to pay it back in April 2021, unless they can draw it down again for another 12 months.
Unlike Manchester United’s recent loan repayments, Spurs’ debt will not be spent on transfers. The club is unlikely to afford to dip into the transfer market during the summer unless players are sold.
Daniel Levy/Alex Bristow/Getty Images
Although not used for transfers, the money will provide Spurs with financial stability, with the club predicting they could lose up to £200m in revenue during the lockdown.