Tottenham Hotspur have confirmed they have been granted a loan of $220 million by the UK government as they expect revenue losses to be over $250 million for the period to June 2021.
Spurs confirmed initial reports from The Athletic about the loan, as the club said they “met the criteria set by the Bank of England for the CCFF” which is “designed to provide short-term loans at commercial rates” during the coronavirus pandemic.
The Premier League club also state that the loan is available to companies who have a “strong investment grade rating and make a material contribution to the British economy.”
Chairman of Tottenham, Daniel Levy, called the current situation the toughest in his 20 years at the north London club and explained the reasons behind the government loan.
“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,” Levy said. “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.”
Tottenham state the main reason for applying for the loan was due to an expected loss of income from “matchday, conferencing and third party live events such as concerts and other sport.”
The club also confirmed that the loan “will not be used for player acquisitions” and is purely to help them steady their business and help with the financial impact of the coronavirus pandemic so they can “have financial flexibility and additional working capital during these challenging times.”
With concerts, hospitality tickets and NFL games among the big losses to Tottenham and their revenue in their stunning new stadium, they will have had built in projected profits and revenues in their business model for the next 12 months.
There are no guidelines on when fans could return to Premier League stadiums and that means Tottenham, along with many other clubs, will take a big hit. In the case of Spurs, they have spent a lot of money building one of the best stadiums on the planet to provide a wonderful environment for fans which in-turn would provide plenty of extra revenue.
Tottenham confirm government loan, expect $250 million revenue loss originally appeared on NBCSports.com