"Absolutely ridiculous high" interest rates, a penalty clause, and "stranglehold loans": MSD Capital enters the lending market as Covid-19 increases risk
25 September 2020
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.
Empty stands, turnstiles grinded to a halt and dust-collecting ticket offices. That has been the reality for English football since the coronavirus pandemic sent the UK into a lockdown and it is clear it will continue to be for the foreseeable future after the government ditched its plans for fans to return in October.
The past few months have been troublesome for most due to the complete absence of matchday revenue and the TV rebates clubs have been forced to issue as a result, ultimately leading to major cash flow issues from top to bottom of the English game.
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