Arsenal are the latest Premier League club to borrow from the government’s Covid Corporate Financial Facility, a funding scheme that is supporting significant businesses facing financial uncertainty as a result of the pandemic.
Arsenal Borrow £120 Million From Government’s Covid Corporate Financial Facility Fund
Premier League Football Clubs Not Exempt to COVID-Enforced Financial Problems
With the ongoing pandemic continuing to damage businesses up and down the country, Arsenal have become the latest major organisation to receive help from the government, borrowing £120 million. The entirety of the loan needs to be paid back before the end of May 2021 and provides a short-term fix for The Gunners.
Arsenal have requested the loan as a result of a loss of match-day revenue and with no guarantee of when fans can return, financial planning becomes an even tougher task than first anticipated.
In addition to this, Premier League clubs lost between £300-£350 million at the end of last season in the form of broadcast revenues, further contributing to the club’s need for additional funding.
Does Not Compare to What Tottenham Hotspur Borrowed in June
Despite Arsenal’s seemingly enormous fund, it still does not compare to London rivals Tottenham Hotspur’s loan in June. Spurs borrowed £175 million as the 2019/20 season resumed and believe the costs inflicted by the pandemic will soon exceed £200 million.
Similar to their North London rivals, Spurs have suffered from losses in vital match-day revenue, merchandising and have also been hit by the sharp decrease in broadcasting revenue. Additionally, The development of the new Tottenham Hotspur stadium would have played a huge part in financing the club had COVID-19 not hit the shores. The ground would have hosted NFL games and concerts that would have generated large sums of money for the club.
The emergency fund prohibits both clubs from using their respective funds for transfers, meaning both clubs will have to delve into the loan market if they are looking to improve this January.
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