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Tottenham Hotspur Borrow 175 Million Pounds from Bank of England ahead of Premier League Return

Tottenham Hotspur (Photo Credit: Reuters)

Tottenham Hotspur (Photo Credit: Reuters)

Tottenham Hotspur revealed the financial impact of the coronavirus pandemic as the Premier League advanced plans for the competition to end its 100-day shutdown in two weeks.

Premier League side Tottenham Hotspur announced on Thursday that it has secured a loan of 175 million pounds from the Bank of England.

Spurs said in a statement that they expect losses due to the coronavirus pandemic "could exceed 200 million pounds for the period to June, 2021."

Spurs said the Tottenham Hotspur Stadium Ltd (THS) met the criteria for the government's Covid Corporate Financing Facility (CCFF) scheme to avail short-term loans. It clarified that the funds will not be used to acquire new players.

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"The facility, which will not be used for player acquisitions, has been arranged to ensure we have financial flexibility and additional working capital during these challenging times. The Club has opened a multi-use venue designed to deliver diversified revenue streams and created jobs, homes and schools as part of the regeneration of our neighbourhood," said the club.

"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," said club Chairman Daniel Levy.

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But Tottenham's need for a credit facility underscored the necessity of playing again, to reduce the hundreds of millions of dollars in rebates the league's broadcasters will be owed even if the competition is completed.

The club announced it secured a loan of 175 million pounds after being eligible for the Bank of England's COVID Corporate Financing Facility and said it would not be spent on player signings.

There are already loans of 637 million pounds to service that were taken out to fund the 1 billion pound stadium that opened last year and can fit more than 60,000 people.

Tottenham said its revenue loss due to the absence of fans, cancellation of stadium events and Premier League broadcast rebates may exceed 200 million pounds up to June 2021.

(With inputs from Agencies)