Premier League giants Arsenal have been hit hard due to the coronavirus pandemic. It led the London club to take out a short-term loan. On Thursday, the Premier League announced that Arsenal had taken out a UK government loan worth £ 120million, which translates to around € 133million or $ 163million.
We can confirm that the club has met the criteria set by the Bank of England for the Covid Corporate Financing Facility (CCFF)
– Arsenal (@Arsenal) January 7, 2021
COVID-19 UK inconvenient for Arsenal’s finances
Last year, the Gunners gained attention after sharing their intention to lay off more than 50 of their staff due to the financial blow they suffered amid the coronavirus pandemic. As matches are played behind closed doors, many clubs now have no income on match day. Ticket sales have been pulled from many clubs due to the spread of Covid-19, as teams face similar financial implications. The north London side currently has a majority of its players agreeing to a pay cut of around 12.5% in an effort to keep cash on hand, which will help non-playing Arsenal staff continue their work.
Arsenal government loan
The Premier League confirmed on Thursday that the London team are part of a Bank of England plan. The program was made available by the government for organizations in need. A loan from the national central bank will help Arsenal have some cash on hand for their ongoing operations, which will boost their income at the present time with closed-door matches at Emirates Stadium and a lockdown at the airport. nationwide have hampered their money flow.
Arsenal government loan: club issue statement
“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 Corporate Financing Facility (CCFF).
As a result, we are taking out a short-term loan of £ 120million through this facility to partially help manage the impact 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 sports, and is reimbursable in May 2021.
“The CCFF is designed to provide short-term finance at commercial rates during the pandemic to companies with good investment ratings and which contribute significantly to the UK economy.”
The club’s statement also revealed how Stan Kroenke’s loan was in addition to the additional financial support the club was receiving from its owner. The Arsenal statement added: “The CCFF is in addition to the loan provided by our owners Kroenke, Sports & Entertainment which allowed us to refinance the debt of Emirates Stadium in August of last year.”
Arsenal finances: the club blasted for poor financial planning
Currently ranked 11th in the Premier League table, the north London side have come under the public microscope following poor planning and financial decisions. Fans and football fans have criticized the Gunners for spending money on transfer fees and salaries throughout the summer transfer window. Although he had no money to pay more than 55 staff, Arsenal spent over $ 58 million signing Thomas Partey and handing over contracts to Willian and the club captain. Pierre-Emerick Aubameyang.