Premier League clubs call on the league to create a loan pool between $ 1.36 billion and $ 2.04 billion, so clubs can borrow money at lower rates than they get from banks and investment funds.
The clubs have relied on banks such as Macquarie and Close Brothers to meet their short-term obligations.
- Clubs use “factoring agreements” in which they borrow against expected income, such as transfer fee payments.
- Teams with smaller fan bases typically have less income and are more at risk or relegation, and therefore have to borrow at high rates. English clubs outside the Premier League often rely on subsidized loans from their owners.
- In March, MSD Partners, started by Dell Computer founder Michael Dell, loaned $ 163.8 million to West Ham United at 9% interest and $ 107.8 million to Southampton at 9.14%.
Premier League clubs collectively lost about $ 2.73 billion during the pandemic and held nearly $ 5.4 billion in net debt at the end of the 2019-2020 season.
The league’s media deals with Sky Sports, BT Sport, BBC Sport and Amazon are worth around $ 7 billion in total and until 2025. DAZN in advanced talks to buy BT Sport, the Premier League being the main motivation for the acquisition.