Foxes take out another loan after Chilwell deal
CHELSEA’S £17M INSTALMENT FOR ENGLAND STAR WILL BE PAID TO AUSTRALIAN BANK MACQUARIE
LEICESTER City have taken out another loan with Australian bank Macquarie.
The loan is secured against Premier League payments City will receive up to January 2023, and supersedes a loan they took out last August, which was based around payments City would receive up to January 2022.
City received an estimated £147.4 million from the Premier League for the 2019-20 season, with central payments partly based on merit of finishing position and the number of TV games hosted.
These payments are received three or four times per season.
A similar finish this season should earn a similar amount, albeit the size of the loan taken out by City is not disclosed in the documents at Companies House, which are dated January 11 this year. It is the ninth agreement City have entered into with Macquarie over the past few years, starting in October 2018 when they took out a loan to receive the Riyad Mahrez transfer fee up front, with Manchester City then paying their instalments straight to the bank.
Before the latest agreement, City’s last deal with Macquarie was in October 2020, when they took out a loan in order to receive a £17 million instalment of Ben Chilwell’s transfer fee.
Chelsea bought the England leftback for £50 million last summer, but did not pay the whole fee up front, with the Blues now required to pay the £17 million instalment straight to Macquarie when it is due in August.
The most recent financial report shows City took out loans of £54 million in the 2018-19 season, and a £45 million loan with Macquarie after May 2019.
They also entered into a six-year facility loan worth £91 million with the club’s owner, King Power, in order to complete the building of the new training ground.
The club’s financial statement for the 2019-20 season will likely be released in March, and it is expected to include some of the impact felt by the club during the coronavirus pandemic.
In the unlikely event that City are relegated next season, Macquarie will then collect the parachute payments received by the club from the Premier League.