Tottenham borrow ÂŁ175 million to ease financial pressure caused by COVID-19 pandemic
Tottenham have failed to come to an agreement over pay cuts with their first-team
|Tottenham have confirmed that they have taken a ÂŁ175 million loan from the Bank of England to help ease their financial burden caused by COVID-19. The pandemic has caused financial issues across the footballing world and many clubs are in dire conditions with a few on the verge of bankruptcy.
Tottenham, like all football clubs across the world, have seen their revenue seriously affected by the coronavirus with them forced to deal without matchday and broadcasting income. Furthermore, with the Tottenham Hotspur Stadium doubling up as a multi-purpose venue as well with boxing matches and NFL matches staged, the club lost on further income. That includes income from two NFL games and a heavyweight title fight alongside various other events.
That has caused serious problems for the club and it has seen them take a £175 million loan from the Bank of England under the government’s Covid Corporate Financing Facility (CCFF). The loan has been confirmed by both Spurs and the Bank of England with the Athletic reporting that they are one of the few clubs who qualify for the CCFF initiative. The report further added that the North London side have projected losses of £200 million between mid-March and June 2021.
The club has stated that the money will not be used to "player acquisitions," but to ensure that the club has the "financial flexibility and additional working capital" to repay the debt on their stadium. The COVID-19 pandemic has forced the club to take drastic measures as they used the government’s furlough scheme to help them pay non-playing staff. But the North Londoners were forced to reverse their decision after coming under criticism which has meant that only Daniel Levy and board members have taken a pay cut.
That includes the first team squad with Tottenham unable to come to an agreement to either a pay cut or a wage deferral with their players. However, the Athletic has further reported that there could be more financial issues with the Premier League potentially set to return broadcast money even if the season continues on.
“We have always run this Club on a self-sustaining commercial basis. I said as early as 18 March that, in all my 20 years at the Club, there have been many hurdles along the way but none of this magnitude – the COVID-19 pandemic has shown itself to be the most serious of them all. It is imperative that we now all work together – scientists, technologists, the Government and the live events sector – to find a safe way to bring spectators back to sport and entertainment venues. Collectively we have the ability to support the development of new technologies to make this possible and to once again experience the passion of fans at live events," Levy said in a statement released by the club.
