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MSD Capital enters the lending market as Covid-19 increases risk

GJ

PA Images | A week ago, Southampton were reported to be on the verge of a takeover as their Chinese owner Gao Jisheng reportedly wants to sell the club, but sources believe a loan by MSD and a penalty clause could be a "poisoned chalice" for a potential takeover.

US funder MSD Capital has seriously entered European football and in the lending market people are raising their eyebrows.

Offthepitch.com has taken a look at MSD Capital and talked with multiple sources about the newcomer.

Cash flow issues caused by the coronavirus pandemic has ultimately led some to accept loans secured against all of their assets described as "stranglehold loans".

Offthepitch.com can also reveal that Southampton's £80 million loan with MSD includes a penalty clause to escape from the loan at 25 per cent.

25 September 2020 - 12:26 PM

By Emil Gjerding Nielson and Mads Meisner

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