Sheffield United borrow Â£7.5 million from bank as David Brooks' transfer fee revealed
Sheffield United have borrowed Â£7.5million from an Essex-based bank that will be repaid in instalments from David Brooks' Â£11.5million transfer fee, it has been revealed.
Photographs posted onlineÂ by Kieran Maguire, a lecturer in football finance at the University of Liverpool, showÂ an agreement between Sheffield United and Shawbrook Bank Ltd for a loan of Â£7.5million.
The loan is expected to cover bills and day-to-day costs at the club and will be repaid with the funds received from the sale of David Brooks to Bournemouth.
Brooks' fee, which was rumoured to be in the region of Â£12million when the transfer was completed during the summer window, is confirmed as having been Â£11.5million.
The Blades have already received Â£4million of the money from Bournemouth and will use the following instalments to pay off the bank loan.
Shawbrook Bank will charge United interest at 6.5 per cent above the base lending rate of the Royal Bank of Scotland and will pay the loan off in instalments of one Â£500,000 payment and two Â£3.5 million fees.
Both the nature of the loan and the interest rate are not thought to be unusual in comparison to other similar loans completed by clubs in the past.