{"id":552910,"date":"2020-06-04T16:53:34","date_gmt":"2020-06-04T20:53:34","guid":{"rendered":"https:\/\/lastwordonfootball.com\/?p=552910"},"modified":"2020-06-04T16:53:34","modified_gmt":"2020-06-04T20:53:34","slug":"report-tottenham-hotspur-borrow-175m-due-to-lockdown-losses","status":"publish","type":"post","link":"https:\/\/lastwordonsports.com\/football\/2020\/06\/04\/report-tottenham-hotspur-borrow-175m-due-to-lockdown-losses\/","title":{"rendered":"REPORT: Tottenham Hotspur Borrow \u00a3175m Due To Lockdown Losses"},"content":{"rendered":"

Tottenham Hotspur<\/a> have borrowed \u00a3175m from the Bank of England to help ease financial pressure brought by the COVID-19 pandemic. This is the latest news from the club via David Ornstein and Jack Pitt-Brooke of The Athletic<\/a>.
\n<\/span><\/p>\n

The club will lose \u00a3200m of revenue this year. This is in part due to Tottenham’s stadium not being able to host matches or other events.<\/span><\/p>\n

The club is eligible for a COVID Corporate Financing Facility (CCFF), repayable with a 0.5 percent interest rate.<\/p>\n

Tottenham Hotspur Will Borrow \u00a3175 to Cover Losses<\/span><\/h2>\n

Spurs’ Financial Situation<\/h3>\n

Before the pandemic, Tottenham were in a good financial place. The club had just announced revenues of \u00a3460 million<\/a>– an increase of \u00a380 million on the previous year. Careful financial management had allowed them to leave White Hart Lane and move to a new stadium.<\/span><\/p>\n

Building finished on the Tottenham Hotspur Stadium<\/a> last year at an estimated cost of \u00a31 billion. However, the new ground is a substantial financial black hole that needs to host events to become profitable.\u00a0<\/span><\/p>\n

The COVID-19 pandemic makes that impossible.<\/p>\n

“We are all facing uncertain times both at work and in our personal lives. I have spent nearly 20 years growing this club, and there have been many hurdles along the way – none of this magnitude – the COVID-19 pandemic is the most serious of them all,” said<\/a> chairman Daniel Levy.<\/p>\n

The club has already tried to cut costs during the pandemic. In March, 550 non-playing staff had their salary cut by 20 percent to protect jobs by using the government’s furlough scheme.<\/p>\n

However, they were forced to backtrack after widespread criticism and later announced that non-playing staff would get their full salaries for March and April.<\/p>\n

Tottenham’s On-The-Pitch Performance Hurting the Bottom Line<\/h3>\n

A significant portion of Tottenham’s earning last year was down to one thing – their successful Champions League campaign.<\/p>\n

However, this year told a different story. The club was eliminated by RB Leipzig in the Champions League Round of 16. Also, they find themselves eighth in the Premier League – seven points off Champions qualification. Failure to secure their place could cost them a minimum of \u00a37.3 million with further bonuses for victories and progression in the competition.<\/p>\n

This could also damage their ability to recruit top European talent.<\/p>\n

What this means is that COVID-19 could potentially knock Tottenham into a cycle of trouble. The board will be hoping that Harry Kane<\/a> and Co can make up the Premier League gap to fourth – any other result could be disastrous.<\/p>\n

Main Photo
\nEmbed from Getty Images<\/a>