Tottenham Hotspurs have paid back a substantial loan amounting to £175 million from the Bank of England's Covid Corporate Financing Facility taken to cover the losses sustained due to the pandemic last year.
Although the club couldn't use the £175 million fund to pay for player salaries, it has found another source of funding by raising £250 million from the sale of private placements through the Bank of America, which, with no restriction on spending, will initially let them renew the contracts of some of the key personalities in the squad, especially their global star, Son Heung Min.
The deal will help Spurs repay the short-term debt of £175m taken earlier by the club after it announced an expected loss of £200 million last year.
Global Capital, the source of the news claims that the US private placements were sold to existing investors involved in the refinancing deal of 2019, helping the latest exchange go on swiftly with no full marketing period.
Tottenham is expected to be able to pay off the loan sooner than later prior to the refinancing, ultimately taking their long-term debt to £837m.
With Harry Kane looking for a move after the Euro 2020, Spurs will have to look for a proper replacement for the England captain and finance heavily on the summer transfer window.
The latest financial move, however, is not believed to be related anyway to the transfer budgets of the club and is in no way expected to add to the funds for Nuno Espirito Santo this summer.
This means that Tottenham will have to depend on the funds gained from the Harry Kane transfer which will eventually bring a huge swell in the transfer budget and leave the club with a lot of roaming space to bring in new recruitments.
Spurs are also looking for a huge stadium sponsorship deal up to £25 million a year for their new state-of-the-art stadium, which will lead them to gain a stronger hold on their finances once they get a new deal.
Finally, comes the part of player contracts.
Speculations around one of the club's superstars have been constantly on the rise as Son Heung Min turns 29 this summer. Coming from a blistering season of scoring 22 goals and 17 assists, the Korean enjoyed the best campaign of his career, and Spurs would be more than happy to keep such an asset to itself.
''They(Spurs) want to renew him for two reasons: A) he is a fantastic footballer and B) shirt sales.'' according to Kieran Maguire, finance guru and host of the Price of Football Podcast.
He also told Football Insider: '' He effectively pays for himself given the popularity he has with South Korean fans and their ability to negotiate deals in that part of the globe.''
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