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Celtic turn down interest free Government loan as Ibrox club hoover up £3.2m

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Celtic were the only SPFL Premiership club not to take up the offer of a 20 year interest free loan from the Scottish Government.

Initially £20m was made available but this increased to £25m with the top pay-out of £3.2m going to Douglas Park’s club at Ibrox with Hamilton Accies settling for £1.15m.

There are some very strange anomalies in the table published by The Sun with Motherwell taking a loan for £2.959m while St Mirren only took £1.764m.

On the surface it would seem strange that Celtic never took up the offer of a long term interest free loan.

In a document produced for loans to rugby clubs viewed by Video Celts there were three key conditions:

  1. No dividends are paid to share-holders
  2. No director loans are repaid
  3. No executive bonuses are paid other than those previously agreed

Should any of the conditions above be broken the loan has to be repaid in full. With Celtic’s Remuneration Committee (Ian Bankier, Brian Wilson and Tom Allison) regularly paying over £1m to their CEO the loan wouldn’t suit the club.

At Ibrox Dave King is waiting on repayment of a £5m loan by 31st of October this year, if that sum is repaid the company will have to repay the Scottish Government their £3.2m loan as well.

It is unclear if any securities were taken by the Scottish Government, in their last audited accounts the Ibrox club posted a £15.9m loss on increased turnover for the year to 30 June 2020.

CLICK HERE for full details of the loans in The Sun.

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