Tottenham Hotspur Stadium Ltd accepted for Covid Corporate Finance Facility

The Bank of England has announced the many large firms that have qualified for Covid Corporate Finance Facility funding, and Tottenham Hotspur Stadium Ltd is among those firms. While helping address an acute situation, the acceptance of this funding doesn’t show a significant change in the club’s long-term financial viability. In fact, the club remains well-positioned for long-term success thanks to both its football and non-football endeavors.

The Covid Corporate Finance Facility Will Help with Short-Term Obligations

Tottenham Hotspur elected to pursue Covid Corporate Finance Facility funding in order to ensure that the club maintains financial flexibility and additional working capital during this time. This is precisely what the funding programme was created to assist with.

The CCFF programme was created by the UK Government to help large firms that have a sizeable impact on the UK economy cope with short-term hardships that the Covid-19 pandemic causes. Businesses that are approved for the funding must meet strict criteria, including being in a good long-term financial position.

Specifically, firms that are approved for the CCFF programme must have had an investment-grade rating or an equivalent recognition at the start of March 2020. Tottenham held such a rating given its long-term financial prospects arising from both football and non-football operations.

It won’t be applied in the transfer window…

In pursuing a CCFF facility, Tottenham Hotspur FC is not about to access it for player acquisitions.

What the facility will be used for is to help mitigate potential effects of disruptions to non-football revenues that the club has seen and expects to continue experiencing. Thus far, significant major music, conference and (non-football) sporting events have been cancelled. These will unavoidably have an impact on this year’s revenues.

In pursuing this funding, Tottenham is merely making a prudent business decision. The club’s stadium is a multi-purpose venue that’s used for all sorts of major events, such disruptions are not insignificant, notwithstanding it remains unknown when spectator-attended events will recommence. Ensuring headspace at a time like this is sensible management.

The Decision to Apply for CCFF Funding Was Carefully Considered

The decision to apply for and accept CCFF funding was made in close consultation with HSBC, which is a financial partner of the club through the bank’s financing of the new stadium.

Additionally, the club has listened to fans and others who didn’t want the club to use government-provided money through the Coronavirus Job Retention Scheme. Designed by the UK government, the CCFF funded is fully repayable at commercial rates.  The funds are secured by means of  short-term commercial paper issued.

Tottenham Hotspur Remains in Strong Long-Term Financial Position

While taking on this short-term debt, Tottenham Hotspur FC continues to be in a strong overall financial position.

The club’s total debt load has increased since last fiscal year’s end on June 30, 2019. This was expected, though, as much of the new financing is directly related to stadium construction. Even when added to this, the CCFF short-term debt remains a manageable amount in light of the club’s overall financial position.

Additionally, the club is well-positioned for renewed revenue gains once the football season and other activities resume.

Daniel Levy is the longest-tenured club chairman of the Tottenham Hotspurs, and he’s widely recognized for taking the club from a mid-tier team to one of the top contenders in the league and regularly competing in the Champions League. He’s also helped the club design and deliver the best stadium in Europe, an accomplishment which has helped significantly expand club revenues beyond only football-related events.

The club continues to hold a 10-year contract with the National Football League of the United States to host two NFL games annually for the duration of the contract. Other non-football revenues include those related to future conferences, concerts and sporting events that are also scheduled and/or anticipated.

A club with a conscience, the stadium will continue to be used to meet community needs whenever possible. Currently, the stadium is acting as a hub for COVID-19 Testing, housing the North Middlesex Hospital’s Women’s Outpatient Services and as a food distribution hub that helps serve those in need.

Tottenham Looks Forward to a Bright Future

No one knows precisely when football and other activities will resume, but Tottenham Hotspur FC looks forward to a bright future whenever that time comes. The club is a global entertainment and sports brand with one of the best stadiums in England, and it will be ready when events resume.


Article Editor

Pamela is a television journalist, humor writer and novelist. Her first novel, Allegedly, was released in 2015 by St. Martin’s Press. The book is available on Amazon and Barnes & Noble. She and her husband, Daniel, have a 3-year-old son, Carter.

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