Spurs stadium loan rockets up to £500m to cover rising costs of delayed construction
- Senior sources close to build confirmed club extended line of credit by £100m
- The club signed a £400m, five-year loan, to finance the construction in May 2017
- Since, state-of-the-art 62,062 capacity stadium build has fallen behind schedule
- It has been hit by delays caused by faulty wiring affecting critical safety systems
Spurs have extended their stadium loan to £500million to cover the rising costs of the delayed construction.
Senior sources close to the stadium build have confirmed the club has extended their line of credit by £100m to cover rising costs.
The club signed a £400m, five-year loan with Bank of America Merrill Lynch, Goldman Sachs and HSBC, to finance the construction in May 2017.
Tottenham have extended stadium loan to £500million to cover costs of delayed construction
Since then, the state-of-the-art 62,062 capacity stadium build has got behind schedule after being hit by delays caused by faulty wiring affecting critical safety systems.
The stadium was intended to open for the game against Liverpool on 15 September.
It is understood the faults have still to be completely resolved. A club spokesman wouldn’t comment on club finances, but added: ‘Every day sees progress in terms of the systems.’
But a source close to the build said: ‘There are literally thousands of miles of wiring to cover, in order to find the faults. Some of the wiring has been built over.’
The ongoing delays have increased the likelihood that the stadium may not be ready to host football matches until the Spring – pushing up construction costs further.
Senior sources close to stadium build confirmed club has extended line of credit by £100m
The additional loan facility would help the club cover any additional costs.
The £400m loan announced last year, replaced a £200m interim financing that was put in place in December 2015.
Chairman Daniel Levy admits costs have ‘definitely risen’ with the club due to give an update and a new opening date at the end of the month.
Speaking to a recent club supporters’ trust meeting, Levy admitted the delays were not just the fault of one contractor.
Chairman Daniel Levy (R) admits costs for the 62,062-capacity stadium have ‘definitely risen’
The minutes of the meeting said: ‘DL (Daniel Levy) confirmed they were down to several contractors.’
If the club were to draw the full £500m loan facility, it would give the club the biggest debt of any club in Europe.
According to this year’s UEFA Club Licensing Benchmarking Report, Manchester United currently has the highest net debt among European football clubs, standing at £487m.
Source: Read Full Article