Spurs £175mil Covid loan



chunkylover53 said:
It’s the Bank of England
Joe Lewis is worth billions isn’t he? And it’s a private company? Why are the tax payers funding them @EssexYid ?
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I was under the impression they were ok financially. Don’t they have about a hundred thousand on a waiting list to pay 20 grand for a season ticket or something.
 
Clearly taking advantage of the low interest rates on offer. They will use that money to invest in the playing squad.
I know people who are using these loans to clear their others debts and they’re just going to pay this debt back on a lower rate of interest therefore saving money .
 
chunkylover53 said:
They’ve borrowed from the Bank of England facility. That is funded by HM treasury. Which is funded by tax revenue
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Spurs have borrowed that money directly from the Bank of England, and will be paying it back at an interest rate of 0.5% it clearly isn’t costing the tax payer anything is it, Daniel Levy is simply borrowing that money because the interest rate is incredibly low and he will have seen it as an opportunity that was just too good to turn down.

Daniel Levy is fanatical and ruthless regarding finances and growing Spurs annual revenue year on year, and up until this point Spurs will have had no tangible problems with their finances taking into account their low interest long term stadium loan and the fact that their wage bill only accounts for 39% of their annual revenue which would have gone up to around £550m for this year under normal circumstances, but will now probably be around £500m or so now that they have lost income from the current coronavirus events.

Daniel Levy is simply safeguarding Spurs financial well being in the long term, in case fans are denied access to the stadium for an extended length of time, which if the case would eventually start to bite Spurs financially, just as it would any other club.
 
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chunkylover53 said:
They’ve borrowed from the Bank of England facility. That is funded by HM treasury. Which is funded by tax revenue
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but they have borrowed it, not been given a grant.

It is highly unlikely that tax revenue is funding the money that the Bank of England lends - more likely it is created through QE
 
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pwsafc said:
It's a concern for all clubs as we don't know how long before fans are allowed in again. If premier league teams are having to get loans makes you wonder how us and other league 1 teams are going to cope
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loans at almost no interest, Spurs have probably taken it as 'prudent', because they can.
 
EssexYid said:
Spurs have borrowed that money directly from the Bank of England, and will be paying it back at an interest rate of 0.5% it clearly isn’t costing the tax payer anything is it, Daniel Levy is simply borrowing that money because the interest rate is incredibly low and he will have seen it as an opportunity that was just too good to turn down.

Daniel Levy is fanatical and ruthless regarding finances and growing Spurs annual revenue year on year, and up until this point Spurs will have had no tangible problems with their finances taking into account their low interest long term stadium loan and the fact that their wage bill only accounts for 39% of their annual revenue which would have gone up to around £550m for this year under normal circumstance, but will now probably be around £500m or so now that they have lost income from the current coronavirus events.

He is simply safeguarding Spurs financial well being in the long term, in case fans are denied access to the stadium for an extended length of time, which if the case would eventually start to bite Spurs financially, just as it would any other club.
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I’m not doubting it’s smart business sense.

I’m saying it’s mad that they can given it’s privately owned by a billionaire tax exile. See also, Branson.

And if the rate of interest is too good to be true, then yes the tax payer is funding it. That’s what funding is. And the rates are artificially low. That’s why they have taken it, rather than financing from a bank or other lender. Unless you think money grows on trees.

Given HM treasury have started to cap dividends and executive pay for companies that take it, they also think it’s tax payer funded.
Arcland said:
but they have borrowed it, not been given a grant.

It is highly unlikely that tax revenue is funding the money that the Bank of England lends - more likely it is created through QE
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It’s funded from the Treasury
 
They were only about 10 games from the end of the season when they would have had to pay all staff until the start of the season in August anyway- how can they justify 175 million in running costs for 3 month ?
 

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