In The Money: Tottenham interest fees now over £20m as club debt revealed
Tottenham are paying interest fees of over £20million because of the club’s league-topping debt levels.
The North London club’s latest 2021/22 accounts revealed financial borrowings of £852.6million.
That figure means Spurs have the most debt in the Premier League, with second-placed Manchester United announcing a gross debt of £507million in their 2022/23 accounts.
Spurs add that over 90 percent of their borrowings are at a fixed rate with an average interest rate of 2.81 per cent.
The average length of the borrowings is over 20 years, with some stretching until 2051.
The interest rate means Tottenham are paying interest fees of over £20million to cover their debt, most of which has been accrued from the construction of the club’s new stadium.
Daniel Levy has previously revealed that stadium construction set the club back £1.2billion.
The financing of the stadium was partially covered by bank loans with Spurs borrowing £637million from Goldman Sachs, Bank of America Merrill Lynch and HSBC. [The Guardian]
Despite Tottenham boasting the most debt in the Premier League, the interest rates attached to their loans compare well to other top-flight rivals in similar situations.
Everton have accepted £300million in loans from Rights & Media Funding Limited and MSP Capital to help finance the construction of their new Bramley Moore Dock Stadium.
The new loans taken by the Toffees have left them with a debt of over £400million.
According to the Daily Mail, the Merseyside clubs are paying approximately £30million in interest payments for debt under half of Tottenham’s.
In other Tottenham news, Daniel Levy tops Premier League table with seven-figure Tottenham wage