Former Leeds United defender Danny Mills has been left puzzled by Tottenham Hotspur’s announcement after acquiring a loan from the Bank of England.
Spurs announced last week that they had secured a £175million loan to help them through the next or so due to the financial crisis caused by COVID-19 pandemic (BBC Sport).
Spurs 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).
The North Londoners are projected to lose £200m as a result of the pandemic, 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.
However, Mills questioned if Tottenham needed the loan given that the substantial profits they recorded (Spurs official).
He also claimed that there will be question marks raised if the club spends money in the transfer market on the back of acquiring the loan.
The former Leeds star told Football Insider: “Football finances are weird.
“Spurs announced record profits but they are still yet to pay off their stadium. They were one of the first clubs to furlough their staff but obviously, they reversed that decision.
“Now they need nearly £200million from the Bank of England and we wonder why football finances are all in a mess. None of it seems to make any sense.
“If you are borrowing at such a low-interest rate from the Bank of England and you start spending that money on transfers – public opinion is going to be very against you.”
Spurs Web Opinion
The club might have announced record operating profits for the last financial year but they still owe a substantial amount on loan repayments for the stadium. With all of the club’s revenues streams stopping abruptly, it is certainly understandable why Levy opted for a loan.
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