As featured on NewsNow: Football news

Arsenal Supporters' Trust demand clarity over new loan

The Arsenal Supporters' Trust (AST) want the board to provide more information after owners Kroenke Sports & Entertainment (KSE) provided a loan to pay bonds held by investment companies.

Financial analysis provided by the AST revealed last month that Arsenal had £144million of remaining debt to bondholders, but that will now be paid off and replaced by another loan which has been taken out by KSE.

There will be financial penalties for making such a move, but the hope is it will remove the complex financial covenants relating to the stadium debt and provide the club with full control of finances and more stability, reports the London Evening Standard.

The move should also help cash flow, as Arsenal will no longer have to hold around £36m in a bondholders' debt service reserve account, while they will hope to take advantage of lower interest rates, which have been caused by the Covid-19 pandemic.

Arsenal, like many clubs around Europe, have been hit hard financially by the coronavirus outbreak and they hope this move by KSE will provide more stability.

The AST, however, have called on the club to provide more clarity on the situation.

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Paul Vegas

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