Finance guru, Kieran Maguire, has explained that Tottenham can now afford to hand Son Heung-min a bumper new contract after borrowing a substantial loan last month.
Spurs had initially taken out a £175m loan via the Bank of England’s Covid Corporate Financing Facility last year to help them cover the losses sustained due to the pandemic.
It then emerged last month that the club had raised £250m for the sale of private placements made through the Bank of America, and it was reported that the funds would be used to repay the short-term £175m loan (Football.London).
Maguire noted that while the £175m Spurs raised through CCFF could not be utilised to pay players’ salaries, there is no such restriction on the £250m loan.
There has been speculation for several months regarding a new contract for Son and Maguire insisted that he would expect Daniel Levy to tie down the South Korean down to a new deal as his first order of business this summer.
He told Football Insider: “Under the CCFF lending conditions, the money that is advanced from the Bank of England can only be used for working capital purposes.
“It cannot be used for what they call ‘senior pay’. I think this is indicative that Son Heung-Min is one of the best-remunerated players at Spurs, for him to fall into that bracket.
“They want to renew him for two reasons: A) he is a fantastic footballer and B) shirt sales.
“He effectively pays for himself given the popularity he has with South Korean fans and their ability to negotiate deals in that part of the globe.”
Spurs Web Opinion
The lack of speculation about Son’s future despite the fact that he only has two years left to run on his contract, suggests that all parties expect an agreement to be reached on a new deal sooner rather than later. So, I am not fearful that we might lose Son despite Kane’s future at the club looking in doubt.
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