Simon Jordan has hailed Daniel Levy’s ‘smart’ move to take out a £175million loan to help finance Tottenham amid the coronavirus pandemic.
And Spurs have been no exception, with the north London outfit having the added pressure of repayments on their state-of-the-art £1bn stadium.
The project was financed through a combination of the club’s own resources, bank loans, and club revenues.
And with Spurs fearing they will lose more than £200m in the period from the start of lockdown to June 2021, Spurs chief Levy had no hesitation in borrowing a hefty £175m from the Bank of England – a decision Jordan completely understands.
“You know when you buy a house you take a mortgage out,” said the former Crystal Palace owner on talkSPORT’s Final Word, “when you build something you often borrow to do it.
“Tottenham have got various levels of borrowing financing that particular development, and what Daniel is doing is taking slices of borrowing and replacing some borrowing with different borrowing, and rebooting it in a more economic way.
“It’s as smart as paint what he’s doing. He’s basically saying if I’ve got a ticket out there for £500m at six per cent and I can borrow from the government with a 0.5 per cent interest rate, thank you very much I’ll take a slice of that.
“I tried to do something with Daniel offering some finance to him for a season ticket reimbursement, so I know that’s what he’s doing.”
Arsenal legend Martin Keown has already warned Spurs fans that it will take them ‘many years’ to recover from the financial fallout of the COVID-19 crisis.
“[Building the stadium] was the right thing to do,” said Keown on Friday’s White and Sawyer show. “They needed to move forward and develop the club.
“If you look at Chelsea and contrast this with them, with all the money they’ve got sat in their transfer pot, they didn’t commit to their new stadium – [Roman] Abramovich pulled out.
“And I bet they are pretty pleased now that they didn’t do that [build a stadium], because of the financial burden it has brought.
“Tottenham now will take many years to get back to where they want to get back to.”
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