Arsenal borrows £ 120million from government program to help finances hit by coronavirus
Arsenal has borrowed £ 120million from a government program put in place to help companies in financial difficulty due to the impact of the coronavirus pandemic.
The borrowed money – which is a short-term loan and must be repaid by the end of May 2021 – will help the Premier League giants balance the books after the impact of COVID-19 resulted in a loss significant revenue through revenue from match doors and television deals.
The Gunners aren’t the first club to use the schedule, with north London rivals Tottenham Hotspur also seeking financial help, while the FA have done the same.
The news was announced via a statement on Arsenal’s official website, with the Premier League club quickly insisting that many other large organizations had been forced to use the program and that the money would be used alongside a loan from owners Kroenke, Sports & Entertainment.
“As we continue to work on the implications of the global pandemic on our finances, we can confirm today that the club has met the criteria set by the Bank of England for the Covid Business Finance Facility (CCFF)” , indicates the press release.
“As a result, we are taking out a short-term loan of £ 120million through this facility to partially help manage the impacts of lost income from the pandemic.
“This is a similar approach to that taken by a wide variety of major organizations across many industries, including sport, and is reimbursable in May 2021.
“The CCFF is designed to provide short-term finance at commercial rates during the pandemic to companies with high investment ratings and making a significant contribution to the UK economy.
“The CCFF is in addition to the loan from our owners Kroenke, Sports & Entertainment that allowed us to refinance the debt on Emirates Stadium in August of last year.”
Arsenal came under heavy criticism last year after the club made the decision to lay off a number of staff following the impact of the coronavirus pandemic, and it is hoped that this short-term solution will negate the need to further reductions.