ENTERTAINMENT

Arsenal takes out a £ 120m loan from the Bank of England's Covid program


BREAKING NEWS: Arsenal borrow £ 120m through the Bank of England's Covid program to deal with the impact of the pandemic – despite a player spending £ 45m in October and Mesut Ozil £ 350,000 a week paid but not played him

  • Arsenal announced they have borrowed £ 120m from the Bank of England
  • The club says it will help them cope with the effects of lost revenue from Covid
  • The Gunners took advantage of the Covid Corporate Financing Facility program

Arsenal has taken out a £ 120 million loan from the Bank of England to help keep finances up after the coronavirus pandemic.

The club announced that it has met the criteria for the Covid Corporate Financing Facility program, which has been set up to assist businesses throughout the disruption caused by the virus.

The program provides short-term financial assistance to large companies with good credit ratings that make a significant contribution to the UK economy.

Arsenal has borrowed £ 120m from the Bank of England's Covid Financing Facility

The short-term loan, which can be repaid in May 2021, has helped the clubs take some pressure off their finances. North London neighbor Tottenham used it last summer to borrow £ 175 million.

In a statement, the club said, “As we continue to investigate the impact 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 £ 120 million through this facility to partially offset the impact of the lost revenue caused by the pandemic. This is a similar approach to a variety of key organizations across many industries, including sports, and is payable back in May 2021.

Arsenal spent £ 45m on Thomas Partey last year

The club are still paying Mesut Ozil £ 350,000 a week despite the midfielder not being on the squad

Arsenal spent £ 45m on Thomas Partey (left) last year and is still paying outcast Mesut Ozil (left) £ 350,000 a week

"The CCFF complements the loan from our owners Kroenke, Sports & Entertainment, with which we were able to refinance the debt at the Emirates Stadium in August last year."

The CCFF was launched by the bank on March 17th last year. She sees the program as a way to help companies bridge disruptions in their cash flows.

The system is believed to have been used by around 100 companies, including EasyJet, Marks & Spencers, and Greggs.

The club, run by Mikel Arteta (pictured), announced a loss of £ 27 million last year

The club, run by Mikel Arteta (pictured), announced a loss of £ 27 million last year

WHAT IS THE CCFF?

On March 17, the Treasury Department announced a series of measures in support of businesses during the pandemic.

The Covid Corporate Financing Facility was one of the most important programs.

It was supposed to support the liquidity of larger companies and bridge disruptions to cash flow by buying commercial paper.

To be eligible, applicants must make a significant contribution to the UK economy and have good credit ratings.

The latest figures from Arsenal's accounts, released last February, showed a loss of £ 27m after failing to win a place in the lucative Champions League in the fiscal year ended May 31, 2019 – after a profit of £ 56.5m in 2018.

Last summer Arsenal spent nearly £ 80m on transfers – including £ 45m on Atletico Madrid midfielder Thomas Partey, £ 23m on signing Lille defender Gabriel Magalhaes and £ 7.2m on Pablo Mari.

The club used free transfers to land Cedric Soares from Southampton and Willian from Arsenal and dumped goalkeeper Emiliano Martinez to Aston Villa for £ 20m.

The Gunners still have a number of big money makers on their books, including the outcast Mesut Ozil, who makes £ 350,000 a week despite not being on Mikel Arteta's Premier League and Europa League squads.

The German has not played a single time this season. His final game for the Gunners is about to restart the Premier League during the final suspension.

Arsenal are ready to sell the former Real Madrid star this month, Arteta said this week, but only if the deal was right for the club.

ARSENAL STATEMENT IN FULL

As we continue to delve into the impact of the global pandemic on our finances, we can confirm today that the club has met the criteria for the Covid Corporate Financing Facility (CCFF) set by the Bank of England.

As a result, we are taking out a short term loan of £ 120 million through this facility to partially offset the impact of the lost revenue caused by the pandemic. This is a similar approach to a variety of key organizations across many industries, including sports, and is payable back in May 2021.

The CCFF is designed to provide short-term finance on commercial terms to companies with strong investment ratings that are a significant contributor to the UK economy during the pandemic.

The CCFF complements the loan from our owners Kroenke, Sports & Entertainment, with which we were able to refinance the debts in the Emirates Stadium in August last year.

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