Football Finance expert Kieran Maguire has claimed that Tottenham made the right decision by deferring payment on the loan they took out from the Bank of England.
Spurs secured a £175million loan from the BoE last summer to help them steer through the financial crisis caused by the COVID-19 pandemic (BBC Sport).
The North London club have been hit by the financial downturn with the club being heavily reliant on matchday revenue for their substantial loan repayments on the stadium (Forbes).
Tottenham are projected to lose £200m as a result of the drop in revenue which is why they decided to apply for a COVID Corporate Financing Facility which allows the club to repay the loan with just a 0.5% interest rate.
The Daily Mail revealed last week that Spurs were due to repay interest back in March but have decided to delay the payment by another 12 months.
Maguire has now explained that the decision was a no-brainer for the club due to the minimal interest rates laid on by the BoE.
He told Football Insider: “It simply makes good business sense from Spurs’ point of view.
“They do have significant debt following the building of the new stadium. It’s logical to get a cheap loan. If you can do so, brilliant.
“Given the choice of paying 0.5 per cent interest and 3 per cent interest, you automatically go for the lower.
“Arsenal have got less external debt. This could also be part of the charm offensive from Stan Kroenke. Not repaying it would be another stick to beat him with.
“But for Tottenham, with this interest, they’ll have to pay another £875,000, which is peanuts to them.”
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