Arsenal take out 120 million pound loan after finances take COVID-19 hit

·1-min read
Premier League - Arsenal v Aston Villa

(Reuters) - Arsenal have borrowed 120 million pounds ($162.65 million) from the Bank of England to ease the strain on their finances as a result of the COVID-19 pandemic, the Premier League club said on Thursday.

The club announced it has met the criteria set by the Bank of England for the Covid Corporate Financing Facility (CCFF), and they have taken out a short-term loan, which must be repaid by May 2021.

The move comes after north London rivals Tottenham Hotspur borrowed 175 million pounds from the CCFF scheme in June.

"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)," a statement read.

"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."

The help from the CCFF scheme comes in addition to the loan provided by Arsenal's owners Kroenke, Sports & Entertainment that enabled the club to refinance the debt on their Emirates Stadium last year.

($1 = 0.7378 pounds)

(Reporting by Peter Hall, editing by Pritha Sarkar)