Finance expert Kieran Maguire has claimed that the mammoth £250m loan taken out by Tottenham is not a big issue for the club as it can be paid over the next three decades. 

It has been well documented that Tottenham’s finances have been hit badly by the COVID-19 pandemic, owing to the substantial debt that has been accrued while building the new stadium.

It remains to be seen what that could mean for the club’s transfer plans, with some reports indicating that players have to be sold to raise money for transfer targets this summer.

One of the ways in which Spurs covered their costs was by taking out a £175m loan via the Bank of England’s Covid Corporate Financing Facility last year.

It then emerged last month that the club had raised £250m for the sale of private placements made through the Bank of America, a boost which would also help them to repay the short-term £175m loan (Football.London).

Maguire has explained that the £250m is an interest-only long-term loan and the repayment date can always be pushed back by Spurs. 

He told Football Insider: “It’s a 30-year interest-only loan. 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.”

Spurs Web Opinion 

The pandemic came at the worst possible time for Spurs.

Just as our revenue streams had increased after our move to the new stadium and Levy started loosening the pursue string as seen by our acquisitions of Ndombele, Lo Celso (and nearly Dybala), and the appointment of Mourinho, matchday income suddenly stopped.

However, as Maguire explained, the loss should be easily absorbable over the long term as long as normalcy resumes from next season. 

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