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Kieran Maguire shares view on Leicester City loan deal as official paperwork filed
Leicester City rolled over their repayment of a bank loan as it would be ‘inappropriate’ to repay it following relegation.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about Leicester’s loan agreement.
The Foxes filed a registration of charge via Companies House last month (27 July) confirming that their loan agreement with Australian bank Macquarie had been rolled over.
The loan was first taken out in 2018 and is understood to be secured against broadcast payments up until July 2025.
Leicester owner Aiyawatt Srivaddhanaprabha wrote off £194million worth of debt in February by converting it to equity in a huge show of loyalty to the Midlands side but has decided against completing the repayment of the loan following relegation.
Maguire believes the decision ‘makes a lot of sense’ as Leicester’s hierarchy will be focused on funding the day-to-day running of Leicester following their drop into the Championship.
“It makes a lot of sense for Leicester to roll over their arrangement with Macquarie,” Maguire told Football Insider’s Sean Fisher.
“The owners have put in a lot of money themselves but they are limited, especially in a post Covid-19 environment.
“Because of that, they have had to rely on third-party sources for funding and finances.
“The cash flows from a few high-profile sales will boost cash further, but it would be an inappropriate time to force a repayment to Macquarie.
“They will still need money for the day-to-day running of the club over the course of the next 12 months.“
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