Arsenal have confirmed they are set to receive a £120m loan from the Bank of England as part of the Covid Corporate Financing Facility.
The CCFF has been set up to provide short-term loans to help cash-flow issues caused by the Covid-19 pandemic and is available to companies who make ‘a material contribution to the UK economy’.
Tottenham and the Football Association have also utilised the CCFF, with Spurs taking out a £175m loan in June and the FA borrowing the same amount in December.
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A statement from Arsenal said: “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.
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“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.
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"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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The Gunners came in for criticism last summer when they made 55 redundancies after players had taken a pay cut on the understanding that it would preserve jobs for other staff.
They also spent around £75m in the summer transfer window and gave striker Pierre-Emerick Aubameyang a new deal worth a reported £250,000 a week.
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