Arsenal borrow £120m from government scheme to aid finances impacted by Coronavirus

Arsenal have borrowed £120m from a government scheme set up to aid businesses who are struggling financially due to the impact of the Coronavirus pandemic.

The money borrowed - which is a short-term loan and must be repaid by the end of May 2021 - will assist the Premier League giants in balancing the books after the impact of COVID-19 saw a significant loss in revenue through matchday gate receipts and television deals.

Arsenal will borrow £120m from the government scheme | Construction Photography/Avalon/Getty Images

The Gunners aren't the first club to have utilised the scheme, with north London rivals Tottenham Hotspur also seeking financial help, while the FA have done likewise.

The news was announced via a statement on Arsenal's official website, with the Premier League club quick to stress that many other major organisations had been forced to use the scheme, and that the money would be used alongside a loan provided by owners Kroenke, Sports & Entertainment.

"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)," the statement read.

"As a result, we are taking a short-term £120 million loan through this facility to partially assist in managing the impacts 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.

Local rivals Spurs have also used the scheme | TF-Images/Getty Images

"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."

Arsenal were heavily criticised last year after the club took the decision to make a number of staff redundant following the impact of the coronavirus pandemic, and it's hoped this short-term solution will negate the need for any further cutbacks.

Source : 90min