EFL rescue: Championship clubs agree £ 117.5million loan
How was this agreement reached?
The loan was granted following EFL’s bidding process, which saw the organization receive a number of proposals from potential private donors.
The funding provided also corresponds to the total amount requested by the clubs in the championship. It is intended to help Championship clubs meet their PAYE obligations until the end of June 30 of this year.
It aims to help cover the nearly £ 150million lost in gate receipts and other sources of match day revenue, with the league playing the equivalent of an entire season with no spectators in attendance.
Following the collapse of talks with the Bank of England, the MetLife deal further indicates that English football increasingly relies on private sources of capital as it attempts to bear the financial impact of the COVID-19 pandemic.
Why 117 million pounds?
In December, the Premier League agreed to cover interest and costs on a loan of up to £ 200million received by league clubs.
This amount was intended to be shared between the Championship teams, meaning loans were capped at £ 8.33million per club.
Several clubs, however, were unwilling to receive another loan, leading to an agreement over the £ 117million figure between the EFL and MetLife.
What was said?
EFL President Rick Parry said this financial support will be “essential” for clubs as they plan their exit from the pandemic.
“Last month marked an unwelcome anniversary for football, with supporters now unable to attend matches for a period of 12 months, resulting in multiple negative consequences,” he said.
“So this is a welcome and timely support package for Championship clubs, whose operations have continued to incur significant costs without generating near-normal revenues.”
Steven Goulart, Chairman of MetLife Investment Management, added: “We know that a healthy and vibrant football environment with strong and resilient clubs is important for the UK.
“We are delighted to be working with EFL so that they can support their Championship clubs with additional funds when needed, further building a strong and sustainable football landscape and ultimately supporting the communities they make. part.
What other funding have lower league teams received?
In December 2020, the Premier League and EFL agreed to a £ 50million grant fund and monitored grant payments for clubs in League One and Two.
(Photo: Catherine Ivill / Getty Images)