Arsenal has revealed the full impact of the coronavirus lockdown, with details of refinancing debts and now making staff redundant.
It was only a matter of time until football clubs revealed to us the true impact of the lockdown. Arsenal appears to be the first in releasing the details of how their club has been affected.
Arsenal has made an official announcement regarding the impact of the COVID-19 lockdown on the club’s financial health.
In a statement released on the club’s official website, they have revealed the refinancing of debt, redundancies, and fears of the impact of a possible second wave of the virus.
The club said:
Our main sources of income have all reduced significantly.”
“These impacts will continue into at least the forthcoming 2020/21 season.”
“The pandemic represents one of the most challenging periods in our 134-year history and we have responded promptly by implementing wide-ranging measures to reduce our costs.”
“Our players, senior football staff and executive team have volunteered pay cuts, we have stopped pretty much all of our capital spendings, and our discretionary operating expenditure has been strictly controlled.”
“We have also received significant financial support from our owners, Kroenke, Sports & Entertainment in terms of refinancing our stadium debt.”
“We all hope there will be no “second wave” but we also need to accept that is one of the many uncertainties ahead of us and plan accordingly.”
“It is now clear though that we must reduce our costs further to ensure we are operating in a sustainable and responsible way and to enable us to continue to invest in the team.”
“Our aim has been to protect the jobs and base salaries of our people for as long as we possibly can. Unfortunately, we have now come to the point where we are proposing 55 redundancies.”