Back in January, Arsenal confirmed they were to borrow £120m from the COVID Corporate Financing Facility (CCFF) to assist with the significant losses attributed to the coronavirus pandemic, a loan that KSE will assist in repaying.
Set up by the Treasury in March 2020, the scheme was designed to prevent large scale corporations from sustaining further financial strain as a result of the coronavirus pandemic by offering short-term loans with low interest rates.
“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,” Arsenal put on their official website.
“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.”
Arsenal set for £120m Kroenke financial involvement as Gunners prepare to pay back Bank of England loan with KSE assistance
The immediate assumption (hope) was that Arsenal being granted this injection would result in an almighty spending spree, when in fact the money was purely for football operations and could not be expended in such a way. However, it was used to help pay off the contracts of Shkodran Mustafi and Sokratis.
Despite an inviting interest rate of 0.5% meaning interest would total £600,000, the loan still needed repaying and is repayable in this month. Arsenal can choose to delay this with the final month of the scheme being until March 2022, but as per football.london, the club will be returning the £120,600,000 back in full this month with the aid of the KSE ownership.
Having only taken out the loan in January, and with no evidence of further loans elsewhere to repay the full amount, it means an intervention from the Kroenke family is taking place, in whatever way they succeeded in wrangling the money.
This comes off the back of Vinai Venkatesham revealing a recent Fans’ Forum that the owners would be aiding with further debt as a result of the Emirates Stadium move, as well as summer investment.
“I will say for the record KSE have refinanced our stadium debt to effectively £200m, we’re going to lose well over £100million this year and it’s KSE standing behind that,” he said. “Whatever we do in this transfer window it’s KSE standing behind that.”
Hands dipping into pockets is the least to expect from the owners. This is their *shudders* football club and all that comes with that responsibility, not least the fines placed on Arsenal following the failed Super League breakaway, is for them to handle.
However the money has been ‘found’ doesn’t have any significant bearing on this summer’s transfer activities. Arsenal will still rely almost solely on outgoings to fund incomings, although the lack of European football will at least require less arrivals simply due to the amount of game time.