Loans - Arsenal

[ClaretTony]

Arsenal have taken out a "short-term" £120m corporate loan from the Bank of England to help offset the impact of the Covid-19 pandemic.


or is it to pay off Mesut Ozil?

[Chester Perry]

Arsenal have taken out a "short-term" £120m corporate loan from the Bank of England to help offset the impact of the Covid-19 pandemic.


or is it to pay off Mesut Ozil?

at less than 1% interest - why wouldn't you if you could, we can't btw, instead our owners have to use the likes of MSD Holdings at a substantial multiple of that rate - the joys of being big six and already carrying hundreds of millions in debt

It should be remembered that Kroenke's bought up at lot of debt recently to bring the costs down at the club, this will help the transition of that to a new lender without it actually being allowed to be used for that purpose

[Chester Perry]

This is a really short term loan - has to be paid back in May - though there is growing expectation that the BoE will roll these loans over for another year - next Premier League central payment is February, from a cash flow perspective

this is what the Telegraph have to say on the loan

Arsenal to take £120m loan from Bank of England to help through Covid crisis
SAM DEAN JANUARY 07, 2021

Arsenal have taken out a short-term £120 million loan from the Bank of England as they continue to navigate the financial problems created by the pandemic.

The loan is designed to help the club’s cash flow issues, rather than provide manager Mikel Arteta with transfer funds, and follows similar moves by Tottenham Hotspur and the Football Association last year.

Arsenal are the Premier League club most financially impacted by playing behind closed doors as matchday income makes up a higher proportion of their revenues than any other side in the top division.

Last year they announced plans to make 55 redundancies across the club amid concerns over the long-term impact of the coronavirus pandemic on their finances.

The £120m loan comes after it was confirmed that Arsenal met the criteria set by the Bank of England for the Covid Corporate Financing Facility (CCFF), and is repayable in May this year along with an undisclosed amount of interest.

The CCFF is designed to help businesses “bridge coronavirus disruption to their cash flows” and is available to companies who make significant contributions to the British economy.

“This is a similar approach to that taken by a wide variety of major organisations across many industries including sport,” the club said in a statement.

It follows a loan provided to Arsenal last summer by the club’s owners, Kroenke Sports & Entertainment, which enabled them to refinance the debt on the Emirates Stadium.

In the summer, Tottenham secured a £175m loan from the Bank of England that was repayable with a 0.5 per cent interest rate. The FA has also taken out a £175m loan from the Bank of England.

The Arsenal Supporters’ Trust last year published an analysis of the club’s finances which predicted that the club could lose around £144m over the year if all games are played behind closed doors this season.

[NewClaret]

at less than 1% interest - why wouldn't you if you could, we can't btw, instead our owners have to use the likes of MSD Holdings at a substantial multiple of that rate - the joys of being big six and already carrying hundreds of millions in debt

It should be remembered that Kroenke's bought up at lot of debt recently to bring the costs down at the club, this will help the transition of that to a new lender without it actually being allowed to be used for that purpose

Whether it’s 1% or 10% though, it still needs paying back. Assuming they took it because they needed it to cover some costs, how are they going to repay it?

Presumably they’ll have to issue more equity to Kroenke or others.

[Chester Perry]

Whether it’s 1% or 10% though, it still needs paying back. Assuming they took it because they needed it to cover some costs, how are they going to repay it?

Presumably they’ll have to issue more equity to Kroenke or others.

Only Chelsea and Man City of the big 6 haven't taken any credit out as a result of Covid - owners will have lent them funds though

as i said in the next post there is a growing expectation that the loans will be rolled over by the BoE as the lockdowns continue - this facility was created by the BoE during the first lockdown and was to last a year - there was no expectation then of a 2nd, 3rd of God forbid a 4th lockdown

[NewClaret]

Only Chelsea and Man City of the big 6 haven't taken any credit out as a result of Covid - owners will have lent them funds though

as i said in the next post there is a growing expectation that the loans will be rolled over by the BoE as the lockdowns continue - this facility was created by the BoE during the first lockdown and was to last a year - there was no expectation then of a 2nd, 3rd of God forbid a 4th lockdown

True, but somewhere down the line will need repaying. I think transfer fees and players wages are going to take a big hit short-term.

[Chester Perry]

True, but somewhere down the line will need repaying. I think transfer fees and players wages are going to take a big hit short-term.

On that we can agree

[Zlatan]

It’s not really a level playing field is it?

[Chester Perry]

It’s not really a level playing field is it?

It never has been

[Zlatan]

It never has been

BoE sponsored gap widening... shouldn’t be allowed IMO.

[Leisure]

The CCFF is designed to help businesses “bridge coronavirus disruption to their cash flows” and is available to companies who make significant contributions to the British economy.

So just how do Arsenal make a significant contribution to the British economy?

[NewClaret]

On that we can agree

Will be interesting to see how desperate some Championship clubs have become this window!

[Chester Perry]

Will be interesting to see how desperate some Championship clubs have become this window!

I think they will try to keep the Price high until the last minute

[Nonayforever]

So just how do Arsenal make a significant contribution to the British economy?

It keeps all the highly stung southern moaners in one place so the rest of London can enjoy themselves.

[Chester Perry]

So just how do Arsenal make a significant contribution to the British economy?

comes down to the number of people they employee and the business that is generated off the back of their presence, which will be £600m+ a year in pre-covid times

I have posted a fair bit about the economic contribution of football clubs to their area region over the years on the MMT thread - 3 years ago Liverpool showed their Champions League fixtures alone contributed over £400m to the Merseyside economy in the season they lost to Madrid in the final

[Woodleyclaret]

There really has to be a wage cap to get the costs down. Borrowing to pay astronomical wages .needs to be stopped.

[Chester Perry]

There really has to be a wage cap to get the costs down. Borrowing to pay astronomical wages .needs to be stopped.

yet people seem happy with our new owners borrowing to fund transfers (and subsequent wages)

[Leisure]

yet people seem happy with our new owners borrowing to fund transfers (and subsequent wages)

But don't think that we're paying astronomical wages.

[Chester Perry]

But don't think that we're paying astronomical wages.

unless it was the person working next to them that were on them

[Father Jack]

Why do only big 6 clubs qualify for this loan with a favourable rate of interest?
Was the qualifying criteria the size of loss incurred from Covid?

[Leisure]

unless it was the person working next to them that were on them

???