Arsenal repays £ 120million loan guaranteed by Bank of England due to COVID-19 pandemic

What happened?

Under the deal with the Bank of England, Arsenal has repaid the £ 120million loan received through the COVID Business Finance Facility (CCFF).

Arsenal chose to take out the loan to help ease cash flow problems caused by the pandemic.

What does this mean for Arsenal?

Arsenal took the loan knowing it was due to be repaid in May.

They also did this knowing that it could hamper their purchasing power during the January transfer window – there was an awareness that asking for a government loan and then using the money to acquire new players. , would have been inappropriate.

After settling the debt, Arsenal is theoretically free to spend as they see fit – provided the owners are willing to invest.

What does he say about the financial situation in the Emirates?

At this point, it’s still hard to say. Arsenal are privately held and important details remain unclear.

We do not yet know how Arsenal repaid this loan. Given their cash flow issues, it is likely that the debt would have been repaid by Kroenke Sports & Entertainment.

If we assume it was on a loan basis, the key question will be how favorable the terms are.

Last year KSE also helped the club refinance stadium debt, but again the terms under which this was done remain unknown.

(Photo: Tony McArdle / Everton FC via Getty Images)

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Nancy Owens

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