LOAN SIGNING Premier League clubs consider turning to payday-style loans with huge interest due to coronavirus cash crisis

SKINT Premier League clubs are considering payday-style loans with huge interest rates to stay in business.

City investors are looking to cash in on the economic crisis caused by the pandemic by charging 25 PER CENT on borrowings up to £100million.

At least four struggling Prem outfits are at the mercy of private equity or venture capitalist firms offering loans at rates massively above the Bank of England base rate of 0.1 per cent.

Lack of match-day revenue and the uncertainty of how and when football will return have created a black hole in revenue for clubs.

And with games behind closed doors a realistic prospect for the immediate future, clubs are unable to borrow cash against season ticket sales and normal game-day income.

They are also discouraged from using potential earnings from broadcast deals as collateral for loans and their cash flow is severely diminished.