Arsenal have borrowed £120million from the government via a scheme set up to support significant businesses facing cash flow problems created by the coronavirus pandemic.
The Premier League giants are taking a short-term loan through this facility to partially assist in managing the impacts of the revenue losses attributable to the continuing global crisis.
Arsenal have one the highest wage bills in European football and at the height of the pandemic last year, the club became embroiled in a dispute with its playing staff who were asked to take a 12.5% pay cut, while they also, controversially, announced 55 redundancies.
Aside from one Europa League game against Rapid Vienna and one Premier League fixture Arsenal have continued to play behind closed doors this season and have been deprived of the £3.5million they generate on every matchday.
‘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),’ Arsenal confirmed in a statement.
Arteta pre Newcastle
‘As a result, we are taking a short-term £120 million 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 CCFF is designed to provide short-term finance at commercial rates during the pandemic to companies that have strong investment ratings and which make significant contributions to the British economy.
‘The CCFF is in addition to the loan provided by our owners Kroenke, Sports & Entertainment that enabled us to refinance the debt on Emirates Stadium in August last year.’
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