Newcastle United may have taken on a new overdraft as part of their move to highstreet bank HSBC,
That’s the view of finance guru Kieran Maguire, speaking exclusively to Football Insider on the Magpies’ decision to move from Barclays to HSBC.
As relayed by Maguire on Twitter On Wednesday July 27, Newcastle confirmed a new charge with HSBC via Companies House.
The exact nature of the loan, which is secured by future media revenues and ticket sales, is not specified.
Maguire suggests the facility could be a “secured overdraft” rather than a traditional loan.
“All outstanding Barclays mortgages were effectively canceled or withdrawn two weeks ago,” he said Football Insiders Adam Williams.
“It could be something as simple as Newcastle changing their main bank, which is the bank they will use to pay salaries and day-to-day bills from Barclays to HSBC.
“As part of this, HSBC can offer an overdraft facility which may never be needed if PIF invests money. It may be a deal of last resort.
“For example, if there was a temporary overdraft requirement, HSBC has the advantage of getting some security and Newcastle will benefit because, if it was a guaranteed overdraft, they will pay a rate of lower interest.
“So we don’t know for sure if it’s a loan or an overdraft facility. The wording of the document is sufficiently opaque, as you would expect, because no one wants to give details. »
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