Cash-hit Premier League clubs could be considering payday-style loans with huge interest rates just to stay in business as the coronavirus crisis bites.
City investors are intent on charging as much as 25 per cent on borrowings up to £100million in a bid to cash in on the economic uncertainty, according to The Sun.
They claim that there are at least four top-flight outfits 'at the mercy' of private equity or venture capitalist firms which are offering loans at rates way above the Bank of England's base rate of 0.1 per cent.
Clubs' revenue streams have been decimated by the pandemic due to a lack of matchday action and the continued uncertainty over when and how football will return.
All Premier League sides have stepped up their return to training in the last week with a view to restarting the season next month but with all games to be played behind closed doors.
That will leave a sizable hole in matchday income, while clubs would have to pay £762million back to broadcasters due to contract breaches in TV agreements if the fixtures are not fulfilled.
This comes after warnings from Huddersfield owner Phil Hodgkinson that the Football League could see '50 or 60 clubs' go bust as a result of the coronavirus crisis.
'The problem is not whether we finish [this] season or not, it is what happens after that,' he told BBC Sport.
'If we don't come to an agreement there will be no football pyramid. There are clubs I know of that are only still trading because they are deferring wages and [tax] and other creditors. They will need paying at some point.'
The date of the Premier League's return could be announced at the end of this week as talks ramp up over phase two of Project Restart.
Source: m.allfootballapp.com