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Monday, February 24, 2025

Premier League Clubs Call for Up to $2B in Loans

  • Premier League teams are calling on the league to create a lending fund that will protect them from high interest rates from banks.
  • Teams ended the 2019-2020 season holding nearly $5.4 billion in debt.
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Premier League/Design: Alex Brooks

Premier League clubs are calling on the league to create a lending pool between $1.36 billion and $2.04 billion, so clubs can borrow money at cheaper rates than they get from banks and investment funds.

Clubs have leaned on banks such as Macquarie and Close Brothers to meet short-term obligations.

  • Clubs use “factoring deals” in which they borrow against expected revenue, such as transfer fee payments. 
  • Teams with smaller fan bases typically have less revenue and are at greater risk or relegation, and thus have to borrow at high rates. English clubs outside the Premier League are often reliant on soft loans from their owners.
  • In March, MSD Partners, started by Dell Computer founder Michael Dell, lent $163.8 million to West Ham United at 9% interest, and $107.8 million to Southampton at 9.14%.

Premier League clubs collectively lost around $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 roughly $7 billion in total and run through 2025. DAZN is in advanced talks to purchase BT Sport, with the Premier League serving as the primary motivation for the acquisition.

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