£175m Loan from the Bank of England

[Timberwolf]

We have gone from lower mid table to top four. Had numerous CL runs including a final.

I know some are only interested in trophies but we have undoubtedly improved a huge amount overall.

If you look at how clubs like West Ham are run now and go back to see how Everton, Villa and other clubs a similar size to us have done and you see we have done well.

We can disagree on the points above but the fact that it isn’t our money has absolutely nothing to do with this is the point I was disagreeing with you on.

This is a great point. Anyone who criticises Levy for being a shit chairman only needs to look at some of those other clubs.

The fact that we got to the Champions League final and had 2 legitimate title challenges is, in itself, a minor miracle. Yes it's bloody frustrating that we didn't win anything, and yes, I think Levy has made a few mistakes along the way, but to go from a perennial bottom half team to genuine challengers without any serious investment on the pitch is a truly staggering achievement.

If back in 2008 someone told you that in just over 10 years VIlla or Everton would reach a CL final, challenge for the title and have a brand new world class stadium, without any new owners coming in, I doubt your reaction would be "Well...if they don't win anything who gives a shit?". You either wouldn't believe it or you'd be massively impressed at how far they'd reached.

I genuinely can't think of a single other club in world football that has made such a big leap in similar circumstances. Not over such a sustained period, anyway.

 

[tototoner]

we'll be able to pay over half back right away when we sell Kane to Man Utd

at least that's what Talksport suggested this morning

 

[mark87]

we'll be able to pay over half back right away when we sell Kane to Man Utd

at least that's what Talksport suggested this morning

No one is going to be able to afford Kane in the current climate.

 

[dontcallme]

With what money?

The club’s money and future earnings.

 

[Deleted member 27995]

we'll be able to pay over half back right away when we sell Kane to Man Utd

at least that's what Talksport suggested this morning

United took the loan the same us as - they must be allowed to spend theirs on footballers - kinda hard when they're buying all the best youth FM suggests.

?

 

[BringBack_leGin]

we'll be able to pay over half back right away when we sell Kane to Man Utd

at least that's what Talksport suggested this morning

And therein lies the problem with giving airtime to people who left school at 7 years old.

The loan was given to us because if our financial stability, not to prop us up artificially. What the loan means is that we won’t be under any pressure to sell.

Now, if I’m summer 21 we are in the shit financially, that’s the time to worry about what we’d do to repay the loan.

 

[Deleted member 27995]

The club’s money and future earnings.

Earnings ... Loan ... Gonna be a dry window.

 

[coys200]

I agree. We won’t be able to bounce back straight away if we have a £175m loan to pay back in full in April next year.

Pretty sure that could be refinanced just like the stadium loan was. I also doubt we will max out the £175m. Sure we can offer our Boe contact some very nice hospitality as a sweetener ?

I know the statement said no money would be used on transfers. And I wonder if that is actually a condition of the loan. But I also wonder if by moving the loan to the stadium they’ve exploited some sort of loophole. Whereby no we won’t use the £175m you gave us on transfers, but the money we have saved from your loan in another part of the club we will use on transfers.

 

[DiVaio]

Teams around us are either strengthening or being linked to players who will enable them to challenge ...

The ones strengthening is the club that have money from Hazard and Morata and didn't spend them earlier. The rest is linked with players who will enable them to challenge same as we are linked with Osimhen, Koulibaly, Ruben Dias etc.

 

[spursfan77]

And therein lies the problem with giving airtime to people who left school at 7 years old.

The loan was given to us because if our financial stability, not to prop us up artificially. What the loan means is that we won’t be under any pressure to sell.

Now, if I’m summer 21 we are in the shit financially, that’s the time to worry about what we’d do to repay the loan.

I listened to the bit on talksport earlier as was in the car. It was Jim White and Keown who couldn’t hide his biase. Fortunately on the way back they had Chris Hughron on who was banging the drum that arsenal have to beat Man City else with their frail mindset they might struggle in these remaining fixtures (I actually think they’ll do quite well away from home without opponent fans in the stadium making their knees tremble).

 

[spursfan77]

Pretty sure that could be refinanced just like the stadium loan was. I also doubt we will max out the £175m. Sure we can offer our Boe contact some very nice hospitality as a sweetener ?

I know the statement said no money would be used on transfers. And I wonder if that is actually a condition of the loan. But I also wonder if by moving the loan to the stadium they’ve exploited some sort of loophole. Whereby no we won’t use the £175m you gave us on transfers, but the money we have saved from your loan in another part of the club we will use on transfers.

I agree on your second paragraph, it’s why I highlighted the debt was on the stadium yesterday.

But I’m sure it has to be paid in full in April 2021 or 2022 as a condition of the loan. Not sure how we will have generated the money again by 2021 so I expect it will be 2022 when we decide to pay it back.

 

[brasil_spur]

Pretty sure that could be refinanced just like the stadium loan was. I also doubt we will max out the £175m. Sure we can offer our Boe contact some very nice hospitality as a sweetener ?

I know the statement said no money would be used on transfers. And I wonder if that is actually a condition of the loan. But I also wonder if by moving the loan to the stadium they’ve exploited some sort of loophole. Whereby no we won’t use the £175m you gave us on transfers, but the money we have saved from your loan in another part of the club we will use on transfers.

Presumably it's also done that way so as not to fall foul of financial fair play. I mean I know our loan is with the BOE, but there's no reason why City couldn't get a loan from "Abu Dhabi Banking*" in order to circumnavigate the fair play rules in the same way.

So i would imagine there are a few reasons why separating a loan from transfer funds into the stadium side of the business would make sense.

*not a real bank AFAIK, but obviously Sheikh Mansour could easily create his own bank to "lend" money to City.

 

[DiscoD1882]

I’ve just come out of the Trump show thread*. This thread is good news. I don’t care what it is. But it’s good news.

*don’t go in there.

 

[mill]

Don’t worry Kane’s sale will hopefully cover the loan?

 

[Locotoro]

I don't imagine any team will be spending big since their revenues will be down and FFP will still apply but this gives us breathing space so that the revenue we do have can be put towards progress instead of treading water

 

[spursfan1991]

Coronavirus Corporate Financing Facility (CCFF) has provided £16.18 billion in loans to 53 companies to date and is able to provide £67.7 billion in total if required. The CCFF provides short-term loans for large businesses, repayable at rates of between 0.2 and 0.6%, in exchange for the Bank of England buying commercial paper from the companies.

To be eligible for the scheme, companies have to be investment-grade rated, in sound financial health prior to the pandemic, and make a material contribution to the UK.

 

[Johnny J]

You could argue that it's morally dubious, but capitalism itself is morally dubious (at best), so I don't have a problem with us gaming an inherently unfair and broken system.

 

[riggi]

Let's put this in perspective.... Levy has taken out an unsecured loan of £175M at 0.5% interest. These types of loans from the BoE are only available to companies with the highest grade credit rating. This is actually a brilliant move by the club as it is an incredibly cheap loan which will get us through a very volatile financial period.

ANOTHER ONE FOR THE TROPHY CABINET!!!

 

[shelfboy68]

ANOTHER ONE FOR THE TROPHY CABINET!!!

I'm looking forward to seeing if we can successfully defend this trophy next season and beyond, at least the accusations of we never win anything can be laid to rest.

 

[markiespurs]

You could argue that it's morally dubious, but capitalism itself is morally dubious (at best), so I don't have a problem with us gaming an inherently unfair and broken system.

I’m not sure it is morally dubious tbh. Just look at the amount of people the club employs, not to mention the many millions the club puts in and generates for the local area, which is one of the poorest in the UK. Without this loan the club might have had to look at laying non playing staff off and cutting investment in local projects.

Besides, the BOE earn from it (albeit a very small amount), so for me the loan is a win win situation for both sides.