Arsenal forced to take out £120m loan from Bank of England over impact of coronavirus crisis after round of redundancies
ARSENAL have taken out a £120million loan from the Bank of England due to the financial impact of the coronavirus crisis.
The cash injection comes after the Gunners made 55 members of staff redundant in August.
A club statement read: "As we continue to work through the implications of the global pandemic on our finances, we can confirm today that the club has met the criteria set by the Bank of England for the 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 the impact of the revenue losses attributable to the pandemic.
"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.
"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."
As Arsenal refinanced the debt on their 60,000 north London arena, 55 members of staff were axed in cost-cutting measures.
Even mascot Gunnersaurus wasn't safe from the chop, with actor Jerry Quy given the boot in October.
Arsenal's decision to make so many redundant while the likes of Mesut Ozil continued to pick up his £350,000-a-week angered many associated with the club.
CASINO DEALS: BEST SIGN UP OFFERS TO CLAIM OVER £700
Club legend Ian Wright tweeted at the time: "Remember who you are, what you are and who you represent."
Gunners-mad Piers Morgan added: "Arsenal firing 55 staff when we're owned by a multi-billionaire, have just made £££ by winning the FA Cup & qualifying for Europe, & pay Mesut Ozil £350k-a-week to sit on his a**e, is morally indefensible.
"[It's] not what I expect from a club with our heritage. Shameful decision."
But Arsenal are not the first Premier League club in London to get a loan from the CCFF.
Fierce rivals Tottenham were forced to borrow £175m in June to deal with the knock-on effect from not being allowed to host fans in their new £1billion, 62,000-seater stadium.
MORE TO FOLLOW
⚽ Read our Arsenal live blog for the latest news from The Emirates
Source: Read Full Article