Tottenham Hotspur Stadium Ltd Among Firms Accepted for Covid Corporate Finance Facility

On June 4, the Bank of England published a list of the large companies that have accepted funding through Britain's Covid Corporate Finance Facility programme and Tottenham Hotspur is among those companies. Despite seeking short-term commercial paper loans, Tottenham remains in a strong financial position for the immediate and the future.

CCFF Loans Will Provide Short-Term Liquidity

Tottenham Hotspur’s Covid Corporate Finance Facility amounts to a total of £175 million, and will provide financial flexibility and more working capital during this pandemic as is intended by the programme.

The CCFF programme is helping some of Britain's larger private companies cope with immediate financial stresses that pandemic-related disruptions to revenue cause. The loans help ensure these companies maintain financial liquidity during this time so that the companies can meet their obligations and continue to operate as best possible given current public health concerns.

In taking out short-term loans via the CCFF programme, Tottenham isn’t acting out of a position of weakness. Instead, the club is acting from a position of wisdom and caution. The programme provides a method for mitigating the negative impacts that the club has experienced thus far and expects to experience in the coming months due to non-football-event cancellations.

Funding Was Secured Prudently

Ultimately, the decision to take advantage of Britain's CCFF program was made in consultation with HSBC and consideration of the public’s previous comments. HSBC is a financial partner the new stadium’s financing, and the bank advised that Tottenham take advantage of this programme.

Popular opinion didn’t want Tottenham using government-provided funds, such as those made available through the CJRS, but these aren’t a government handout. The CCFF programme is specifically commercial paper loans that amount to short-term debt which the club will pay back.

More than football

The short-term loans that Tottenham Hotspur has secured through this programme will be not be used for player acquisitions but rather they will allow the Club to continue to support the investment it has already made to date in the local area. Tottenham’s new stadium is widely-regarded as the flagship development kick-starting the regeneration of one of the most deprived boroughs in London. To date the Clubs developments have led to nearly 4000 jobs and delivered homes and schools.

Delivering a multi-use stadium was designed to secure diversified revenue streams. The club’s new stadium frequently holds A-list concerts, conferences and sporting events (other than football). Already during the pandemic, a Lady Gaga concert, Guns N’ Roses concert, Capital Summertime Ball, England versus Australia rugby match, two boxing matches and two NFL matches have all been cancelled. It’s lost funds from cancellations like these that the CCFF funding will help mitigate.

Tottenham Is Well-Positioned for the Future

Looking beyond the immediate non-football revenue losses, Tottenham Hotspur is well-positioned for the long-term future.

In a financial sense, Tottenham leads the Premier League in pursuing multiple and diverse revenue streams.

No one knows exactly when football and non-football events will resume, but Tottenham Hotspur is ready for when that happens. This funding will help Tottenham meet its immediate obligations while maintaining a strong long-term position that will lead to success both on and off the pitch.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes