Covid-19 crisis forces Spurs to borrow big
Premier League club Tottenham is borrowing $220 million ($340m) using the Bank of England’s emergency pandemic loan scheme to cope with the absence of spectators and the cancellation of two NFL games it was to stage this year.
The North London club revealed the financial impact of the coronavirus pandemic as the Premier League advanced plans for the competition to end its 100-day shutdown in two weeks, with games closed to supporters.
During a conference call, clubs agreed to adopt the temporary change in world football laws and raise the number of substitutes allowed in games from three to five, with the bench increasing from seven to nine players.
Clubs also agreed in principle – after weeks of fraught discussions – to using neutral venues for games police deem cannot be held at home stadiums due to concerns about fans gathering outside.
The season is to resume on June 17, with Aston Villa at home to Sheffield United, followed by Manchester City against Arsenal.
But there is still no agreement among clubs on how to settle the final standings if the season has to be halted again – and curtailed.
Former Premier League chairman Dave Richards said it was too early to be resuming with the British Government on Thursday recording 1871 new Covid-19 cases and an additional 359 deaths, taking the overall tally to near 40,000.
“I believe it is just too early,” Richards said at a SoccerEx online conference. “But it all comes down to money in the end, because we have contracts with broadcasters and everything.
“No matter how much money is involved, the time is not right for the public to be watching it on TV. It’s a few weeks yet before we should.”
But Tottenham’s need for a credit facility underscored the necessity of playing again, to reduce the hundreds of millions of dollars in rebates the league’s broadcasters will be owed even if the competition is completed.
The club announced it secured a loan of £175 million after being eligible for the Bank of England’s Covid Corporate Financing Facility and said it would not be spent on player signings.
There are already loans of £637 million to service that were taken out to fund the £1b stadium that opened last year and can fit more than 60,000 people.
Tottenham said its revenue loss due to the absence of fans, cancellation of stadium events and Premier League broadcast rebates may exceed £200 million up to June 2021.
“It is imperative that we now all work together – scientists, technologists, the government and the live events sector – to find a safe way to bring spectators back to sport and entertainment venues,” Tottenham chairman
Daniel Levy said. “Collectively, we have the ability to support the development of new technologies to make this possible and to once again experience the passion of fans at live events.”
Tottenham are struggling to qualify for the lucrative Champions League next season. The 2019 finalists are eighth in the Premier League, seven points behind fourth-placed Chelsea with nine rounds remaining.
Going to court
Meanwhile, in France, the president of Lyon yesterday asked a court to reverse a decision to cancel the rest of the French league season, saying it was “absurd” to halt the competition so early.
Lyon took the case to the Council of State in a bid to force the league to play the remaining 10 matches.
“It was absurd to call the league off (on April 30) while other leagues reserved the right not to. Germany is already playing again, Spain will next week,” Aulas said at a three-hour hearing. “It’s the league which took the decision and can take the decision to resume . . . I’m shocked that we’re here debating whether we can play or not.”
The Bundesliga resumed last month, while Spain’s La Liga is restarting on June 12. The English Premier League is set to resume on June 17, and Italy’s Serie A three days later.
Aulas thinks it’s not too late for France.
“We can train for three or four weeks and finish the league by the end of August,” he said. “Lyon is resuming training on June 8 with a health protocol, which has been approved.”
Amiens and Toulouse were also present at the hearing in an attempt to overturn their relegation, although they are not arguing for a league restart.
Judge Bertrand Dacosta said he will deliver his verdict either Monday or Tuesday.
The LFP canceled the league two days after Prime Minister E´douard Philippe ordered all sports competitions to be called off because of the coronavirus pandemic. He specifically mentioned football in his address to parliament on April 28.
Runaway leaders Paris SaintGermain were declared champions. Lyon finished seventh and missed out on a Europa League place while Amiens and last-place Toulouse went down.
Amiens and Toulouse have proposed a 22-team league next season.
They argued that relegation was unjust because there were no statutes in place for such a scenario, and that it was an arbitrary decision considering the standings could have been different if the pandemic had led to the league shutting down earlier.
Lyon argued that the table was unfair because teams had not played the same amount of games home and away or met the same opponents. It said the league should be declared void if it can’t be resumed.
Ligue 1’s director Didier Quillot sat across from Aulas at a sometimes-heated hearing and defended the LFP’s decision.
Aulas argued missing out on European competition would impact finances and weaken Lyon’s presence in the transfer market. Lyon can still qualify for the Europa League if it beats PSG in the League Cup final, which was not canceled.
A lawyer for Lyon said the health situation could have improved between April 30 and late May, while the league repeated it was only acting on government orders.
Quillot also said it was not possible to delay the start of the new season on August 23, in part because of a new TV rights contract with broadcaster Mediapro.