Tottenham FC has confirmed they have borrowed £175 million from the Bank of England to ease their financial burden due to the COVID-19 pandemic. The crisis has caused financial issues across the football world and a lot of clubs are in dire conditions with a few on the verge of bankruptcy.
Tottenham, like all football clubs in the world, have seen their revenue affected by the coronavirus seriously with them forced to deal without match-day and broadcasting income. Moreover, with the Tottenham Hotspur Stadium doubling up as a multi-purpose venue with boxing matches and NFL matches staged, the club lost further income. That consists of income from two NFL games and a heavyweight title fight alongside many other events.
That has caused some serious problems for the club and it has caused them to take a £175 million loan from the Bank of England under the Covid Corporate Financing Facility (CCFF) of the government. The loan has been confirmed by both Tottenham and the Bank of England with the Athletic reporting that they are among the few clubs who qualify for the CCFF initiative. The report also added that the North London side has projected losses of £200 million between mid-March and June 2021.
The Spurs has stated that the money will not be used to player acquisitions, but to make sure that the club has the “financial flexibility and additional working capital” in order to repay the debt on their stadium. The pandemic has forced the club to take drastic measures when they used the government’s furlough scheme to help them pay non-playing staff. However, the North Londoners were forced to reverse their decision after facing criticism which meant that only Daniel Levy and board members have taken a pay cut.
That includes the first team squad with Tottenham who is unable to come to an agreement to a pay cut or a wage deferral with their players. But the Athletic has reported that there could be more financial issues with the Premier League set to return broadcast money even if the season continues on.