Huddersfield Town must repay Dean Hoyle loans to the value of £35 million, according to a report from BBC Sport’s Simon Stone. The Terriers’ former chairman guided the Yorkshire club from League One to the Premier League in 2017.
Hoyle, a lifelong fan, sold his stake to Phil Hodgkinson in May 2019 after recovering from a serious pancreatic condition. Huddersfield have struggled since their second season in the top flight. They are just three points above the drop zone in the Championship at the point where the season was suspended due to the Coronavirus pandemic.
Huddersfield Town Must Repay Dean Hoyle Loan
Debt to be Repaid
In the accounts up to 30th June 2019, which were published today, the Terriers confirm the debt has to be repaid. It also offers one explanation to the fans who didn’t understand the clubs frugal spending since relegation.
The agreement states that Hoyle is to be repaid by the end of the 2022 season. The £15 million within five working days of the end of the 2019 summer transfer window.
The remaining £20 million is to be repaid in two instalments of £10 million each. These are payable on 31st August 2021 and 2022. A further £10 million is due to the 52-year-old but no firm repayment date is set.
The club has also taken out a further loan of £31 million. This will be covered by the parachute payments for the 2020/2021 season.
The current chairman stated: “The financial impact of relegation is cushioned by Premier League parachute payments, expected to total £91 million over the next three seasons.”
“We will use these funds to assist in our squad transition, settle outstanding transfer fees, invest in our infrastructure as well as servicing and repayment of our debt.”
Huddersfield Town does not want to risk everything it worked hard for. The club has faced administration once before and are keen to avoid this happening again.
Splashing the cash has never been in the Terriers remit. They will not start now. Fans should now understand why there has not been a spending fury trying to bounce straight back up. The club cannot afford to put itself in a financial mire again.