Arsenal have taken out a significant loan From the Bank of England in order to deal with their financial losses during the coronavirus pandemic.
The Premier League club have suffered huge financial losses and they have taken advantage of a government scheme aimed to support businesses facing cash flow problems due to the pandemic.
According to reports, Arsenal have taken out a loan of around £120 million and they will have to pay it back before the end of May along with interest.
It is believed that the loan will not affect the club’s transfer plans in January and Arsenal will look to sign a creative midfielder this month.
A statement from Arsenal read: “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.”
The Gunners have had a very good season so far and they will be hoping to turn their fortunes around during the second half of the season.
A club of their stature will be expected to challenge for Champions League qualification and it will be interesting to see if Mikel Arteta can get his side firing on all cylinders again.
Missing out on Champions League football for another season will add to their financial woes.
Arsenal are not the only club who have been the huge amount to cope with the losses during the pandemic.
Premier League rivals Tottenham borrowed around £175 million in June after missing out on matchday revenue and other events such as concerts and the NFL.
