The insolvent arsenal borrows £ 120m from the Bank of England amid the financial constraints of the coronavirus pandemic

The Gunners will have to repay the money with interest by May as they continue to feel the financial pinch of the Covid-19 outbreak

Arsenal has taken out a £ 120 million ($ 160 million) loan from the Bank of England to help alleviate cash flow problems caused by the coronavirus pandemic.

The loan was provided by the bank’s Covid Corporate Finance Facility (CCCF) and is due to be repaid by May along with an indefinite amount of interest.

Arsenal’s North London rivals Tottenham took advantage of the program last summer, borrowing £ 175m ($ 240m), while the Football Association also used it to borrow the same amount in December.

In a statement, Arsenal said: “We are taking out a short term loan of £ 120 million through this facility to partially offset the impact of the pandemic-related loss of revenue.

“This is a similar approach to that of a variety of large organizations in many industries, including sports, and is repayable in May 2021.

“During the pandemic, the CCFF is intended to provide short-term financing at arm’s length to companies that have a strong investment rating and make a significant contribution to the UK economy.

“The CCFF is on top of the loan from our owner Kroenke Sports and Entertainment, which enabled us to refinance the debts of the Emirates Stadium last August.”

Arsenal have seen revenue slump due to the pandemic and the club’s cash reserves have now dried up.

Last year the Arsenal Supporters Trust released a detailed analysis of the club’s financial position in the context of the pandemic and forecast a loss of £ 144 million ($ 195 million) if the entire 2020-21 campaign were to go without fans.

The $ 120 million loan

Arsenal continue to hope to add at least one new player to Mikel Arteta’s squad this month but it is likely that any new signings will only be loaned out due to the financial troubles the club are currently facing.

Arsenal are focused on developing players and cutting the payroll during the transfer window, with the club talking to high earner Mesut Özil and his agent about a possible January exit.

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