Arsenal take short-term $163 million loan from UK government to overcome COVID-19 impact

Premier League giants Arsenal have been heavily hit due to coronavirus pandemic. It has led London club to take a short-term loan. On Thursday, Premier League anunced that Arsenal have taken a loan from British Government worth £120 million which roughly translates to 133 million euros or $163 million.

COVID-19 UK troublesome for Arsenal finances

Last year, Gunners grabbed limelight after y shared ir plans on firing over 50 people from ir staff due to financial hit y took amid coronavirus pandemic. With matches being played behind closed doors, many clubs are w without match day revenue. Ticket sales have been taken away from many clubs due to spre of Covid-19 as teams are facing financial implications of same. rth London side currently has a majority of its players agreeing to a pay cut of around 12.5 per cent in an attempt to keep some cash flow available at hand which will help n-playing Arsenal staff to continue with ir jobs.

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Arsenal government loan

On Thursday,  Premier League confirmed that London side is a part of a scheme of Bank of England. scheme was me available by government for organizations in need.  A loan from national central bank will help Arsenal have some money for its ongoing operations that will help ir revenue in current times where closed-door matches at  Emirates Stium and a country-wide lockdown has hampered ir money flow.

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Arsenal government loan: Club releases statement 

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

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

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" CCFF is designed to provide short-term finance at commercial rates during pandemic to companies that have strong investment ratings and which make significant contributions to British ecomy."

club statement also revealed how Stan Kroenke’s loan was in dition to extra financial support club was receiving from its owner. Arsenal’s statement ded, " CCFF is in dition to loan provided by our owners Kroenke, Sports & Entertainment that enabled us to refinance debt on Emirates Stium in August last year."

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Arsenal finances: Club blasted for poor financial planning 

Currently, slotted 11th in Premier League standings, rth London outfit have come under microscope of public following poor financial planning and decisions. Fans and football followers have criticized Gunners for spending money on transfer fees and ws across summer transfer window. Despite failing to have money for paying over 55 staff members, Arsenal spent over $58 million while signing Thomas Partey along with handing out contracts to Willian and club captain Pierre-Emerick Aubameyang.