Club say trans­fer cash not funded by the tax­payer

The Daily Telegraph - Business - - Sport Football - Sports in­ves­ti­ga­tions re­porter Daily Tele­graph The

Ben Rumsby

Tot­ten­ham Hot­spur’s trans­fer spend­ing – in­clud­ing the im­mi­nent re­turn of Gareth Bale – is not a con­cern for the Bank of Eng­land, which agreed a £175 mil­lion tax­payer­backed loan to the club in June,

has been told. Spurs’ sum­mer out­lay was last night set to rise to £72.5mil­lion and their net spend to £60.5 mil­lion, with a sea­son-long loan for Bale expected to cost £15mil­lion in fees and wages at a time when they are los­ing mil­lions a week due to the coro­n­avirus cri­sis. The club were able to bor­row £175 mil­lion from the Bank of Eng­land this sum­mer at an in­ter­est rate of 0.5 per cent, un­der what is known as the Covid Cor­po­rate Fi­nanc­ing Fa­cil­ity (CCFF), which was set up in March to sup­port large com­pa­nies af­fected by the pan­demic.

The club said at the time that the money was to give them fi­nan­cial flex­i­bil­ity and ad­di­tional work­ing cap­i­tal at a time when their losses might ex­ceed £200mil­lion over the course of the year.

They also specif­i­cally stated it would not be used for player ac­qui­si­tions, some­thing was told yes­ter­day was a “pre­req­ui­site” of its grant­ing. was also told the Bank of Eng­land was con­fi­dent the money had been ring-fenced and that Spurs were adamant that was the case.

Among the re­stric­tions placed on them is one for­bid­ding the chairBy man, Daniel Levy, who was paid a £3 mil­lion bonus for com­plet­ing the club’s new sta­dium, from re­ceiv­ing a div­i­dend should they not re­pay the money within a year.

Bank of Eng­land guide­lines state that those us­ing the CCFF “will be expected to pro­vide a let­ter ad­dressed al­ready bought Matt Do­herty and Pierre-Emile Ho­jb­jerg for £15mil­lion each.

Whether the £175 mil­lion loan has had any im­pact on Spurs’ trans­fer spend­ing is un­clear. Had they not had ac­cess to the CCFF, Spurs could have taken out a com­mer­cial loan or their own­ers could have made up the short­fall.

Kieran Maguire, a foot­ball fi­nance ex­pert and lec­turer in the sub­ject at the Univer­sity of Liver­pool, said: “Their wage cost base is so far be­low that of the other large clubs that they prob­a­bly had a bit more wrig­gle room to get out into the market – but not a huge amount. I think they would’ve needed some sort of funding.”

Spurs have avoided mak­ing the same level of re­dun­dan­cies as Arse­nal, hav­ing last sea­son re­versed their de­ci­sion to take ad­van­tage of the fur­lough scheme fol­low­ing crit­i­cism from fans.

Roy Hodg­son has said Ma­son Green­wood should ex­pect to “pay a price” for his breach of coro­n­avirus pro­to­cols while on Eng­land duty.

Green­wood, the Manch­ester United for­ward, and in­ter­na­tional team-mate Phil Fo­den were dropped from the Eng­land squad af­ter invit­ing two Ice­landic women into the team ho­tel.

Hodg­son, the for­mer Eng­land man­ager, told TalkSport that play­ers must show the ap­pro­pri­ate “level of be­hav­iour” that is expected at in­ter­na­tional level.

“When you make a mis­take as big as he made, you should be ex­pect­ing to pay a price,” said Hodg­son, whose Crys­tal Palace side face United at Old Traf­ford on Satur­day.

“If you are old enough to come in and hold down a reg­u­lar spot at United and be called up for Eng­land, you have to pro­duce the level of be­hav­iour re­quired at that level.”

Green­wood apol­o­gised for his ac­tions, say­ing he only had him­self to blame for his “huge mis­take”.

He also said this week that he had shown “poor judg­ment” af­ter be­ing caught on cam­era ap­par­ently in­hal­ing ni­trous ox­ide from a bal­loon. The 18-year-old re­port­edly took the “laugh­ing gas” weeks be­fore his Eng­land de­but in Ice­land.

The Tele­graph The Tele­graph Penalty clause: Daniel Levy will not re­ceive a div­i­dend if Spurs fail to re­pay the £175m Bank of Eng­land loan within a year to HM Trea­sury that com­mits to show­ing re­straint on the pay­ment of div­i­dends and other cap­i­tal dis­tri­bu­tions and on se­nior [ex­ec­u­tives’] pay”. As well as the re­turn of Bale, Tot­ten­ham are close to sign­ing his Real Madrid team-mate, Ser­gio Reguilon, for £27.5mil­lion, hav­ing

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