Tottenham take out £175m loan from Bank of England as Spurs estimate coronavirus revenue losses of £200m

Tottenham have taken out a £175million loan from the Bank of England under the government's Covid-19 Corporate Financing Facility scheme, with the club estimating revenue losses of £200m due to the pandemic.

The club has utilised the government's Covid Corporate Financing Facility (CCFF) scheme, available to select companies with the highest "investment grade" credit rating, which make significant contributions to the British economy.

Spurs insisted the loan, which is due to be repaid in April 2021 at 0.5 percent interest, "will not be used for player acquisitions" but said it would give the club "financial flexibility and additional working capital during these challenging times".

Spurs spent an estimated £1.2billion on their new stadium, which opened last year, and they announced the refinancing of £525m worth of debut with two banks last September.

The club's final five home matches of the season are now due to be played behind closed doors, with season ticket-holders being refunded, while Spurs are also facing revenue losses from the cancellation of a number of lucrative events at their stadium, including two NFL matches scheduled for Autumn.

Among the other businesses to use CCFF are budget airlines Ryanair and EasyJet (both £600m), John Lewis (£300m), Rolls Royce (£300m), ASOS (£100m) and Greggs (£150m), the Bank of England has announced.

Spurs reversed their decision to use the government's furloughing scheme for non-playing staff after a fierce backlash from supporters in April.

Spurs chairman Daniel Levy, who has warned that clubs "big or small" could go out of business during the pandemic, said it was "imperative" to find a way to return paying supporters to events as soon as possible.

"We have always run this Club on a self-sustaining commercial basis," Levy said. "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 Pictures | Tottenham resume contact training | 28/05/2020

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A Tottenham statement confirming the loan read: "THS has met the criteria set by the Bank of England for the CCFF and has issued £175m of Commercial Paper through this facility.

"The CCFF is designed to provide short-term loans at commercial rates during the pandemic and is available to companies that have a strong investment grade rating and make a material contribution to the British economy.

"The global pandemic has created unprecedented economic and social challenges and the entertainment sector has been particularly affected. We are yet to see the full extent and duration of the economic impact. As of today, it is unclear when there will be a return to spectator-attended live events.

"Due to the significance of income from matchday, conferencing and third party live events such as concerts and other sports, our estimated revenue loss, including broadcast rebates, may exceed £200m for the period to June, 2021.

"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. We are ever-conscious of the responsibility we bear to ensure the future stability of our Club for all stakeholders and, in doing so, support our communities and our continued investment in the area."

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