Tottenham Hotspur have borrowed £175 million from the Bank of England as part of plans to cushion the effects of the financial impact of the coronavirus pandemic.
The North London club announced that they expect to lose £200 million by June 2021 as a result of the pandemic.
Spurs recently moved into a new home, the Tottenham Hotspur Stadium but fans are not expected to be in attendance for the foreseeable future as games are expected to be played behind closed doors. Other sporting and cultural events which were due to take place at the stadium have also been canceled.
Among the canceled events at the new stadium were two NFL fixtures, Anthony Joshua’s world heavyweight championship boxing match against Kubrat Pulev and a Lady Gaga concert.
Spurs will also have to pay a rebate to broadcasters after three months without any Premier League action.
The £175m in funding has been borrowed through a Covid Corporate Financing Facility, which Tottenham were eligible for.
It is repayable at an interest rate of 0.5 per cent.
Manager Jose Mourinho previously said Tottenham are “not going to spend rivers of money” on transfers, and these funds will not be used to sign new players, instead providing financial flexibility.
“We have always run this club on a self-sustaining commercial basis,” said Tottenham chairman Daniel Levy.
“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.”
In April, Tottenham reversed their decision to use the government’s furlough scheme amid a backlash from fans. Spurs initially planned to use the system for 550 non-playing staff during the COVID-19 crisis.
After the reversal of the decision, Spurs insisted all affected staff would receive full pay in April and May, with only board members – including Levy – taking monetary reductions.
