Arsenal Agree £120m COVID-19 Bank Loan

By Daily sports on January 8, 2021

Arsenal have borrowed £120 million from the Bank of England to help the club's cashflow through the ongoing COVID-19 pandemic.

The loan is repayable by the end of May and is principally designed to help offset the ongoing absence of matchday revenue for the season.

Significantly, the money cannot be used for transfers as it comes from the Bank of England's COVID Corporate Financing Facility (CCFF), which is the same scheme through which Tottenham and the Football Association received financial support last year.

Few clubs or organisations are eligible for the CCFF because of strict qualification criteria which include a strong investment grade rating and a determination that a company makes a “material contribution to the British economy.”

It is unclear what interest Arsenal will have to pay on the loan but Spurs borrowed their £175m sum at a rate of 0.5%.

“As we continue to work through 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),” an Arsenal statement said.

“As a result, we are taking a short-term £120m loan through this facility to partially assist in managing the impacts of the revenue losses attributable to the pandemic. This is a similar approach to that taken by a wide variety of major organisations across many industries including sport and is repayable in May 2021.”

The move highlights the difficulties clubs are facing in coping with a huge drop in revenue resulting from the pandemic, particularly at Arsenal where matchday income accounted for a quarter of their revenue in 2018-19.

Arsenal have already made 55 non-playing staff redundant in addition to drastically reducing the size of their scouting network and parting company with several senior staff members including former head of football Raul Sanllehi and contract negotiator Huss Fahmy. (ESPN)

•PHOTO: Arsenal players

Source Daily sports

Posted January 8, 2021


 

You may also like...
Shanghai Masters: Rafael set up Dimitrov quarter-final

Confident Rohr says Nigeria will do everything to...

Valverde Dismisses Barcelona Crisis Talk

Man Utd fan admits slapping Jack Grealish at...

Cristiano Ronaldo Return 'Has Caused Tensions In Manchester...

Wilder wants big haul for Whyte fight

 

Latest News Sundowns face fatigue, travel nightmare ahead Remo clash Nigeria loses 2030 Commonwealth Games bid to India Explainer: How Super Eagles can secure World Cup ticket through play-offs Ever-present Bassey shines in World Cup qualifiers Super Eagles to face Gabon in World Cup play-offs 160 students for 2nd EOCF Unified Sports WCQ: Keep hope alive, Tinubu urges Super Eagles after 4-0 win Glover to oversee CAHB, IHF election I’m proud of my players – Chelle 2025 Georgian Cup holds in Kaduna Eagles have good chance in play-offs – Odegbami Super Eagles qualify for 2026 World Cup playoffs

 

Most Read Rangers International going, going . . . (63,245 views) Amaju Pinnick: A cat with nine lives (54,441 views) Second Term: Amaju Pinnick, Other NFF Heavyweights Home to Roost •How Pinnick Broke the Jinx (52,393 views) Current issues in Nigerian sports: Matters arising (52,001 views) Sports Development: Zenith Bank on the zenith (51,996 views) Missing $150,000 IAAF Grant: Solomon Dalung’s Hide and Seek game (51,959 views) Gov. Abdullahi Ganduje’s solid footprints, commitment to sports development in Kano State (51,785 views) NFF Presidency: Pinnick, Maigari, Ogunjobi, Okoye in Battle for Supremacy (51,370 views) Olopade, BET9A wave of revolution in NNL (50,485 views) Commonwealth Games 2018: Shame of Muhammadu Buhari, Solomon Dalung (49,027 views) Ibrahimovic’s Man U exit: Whose decision is it? And in whose interest? (47,465 views) John Mikel Obi: Segun Odegbami’s Outrageous Call! (46,926 views)

 

Phone numbers

Tel: +234(0)8066020976
+234(0)8055068145
+234(0)7013416146
+234(0)8094272884

Email addresses

info@dailysportsng.com
support@dailysportsng.com
publisher@dailysportsng.com

Office address

No 3, Adetoun Close, Off College Road, Ogba, Ikeja Lagos.
Website: www.dailysportsng.com

Social Media