EFL secures £117m loan to fund Championship clubs through Covid

PL money ball

March 30 – The English Football League (EFL) has secured a £117 million loan fund for Championship clubs with MetLife Investment Management.

The funding package will help clubs in the Championship in “meeting PAYE liabilities”, the EFL said in a statement released on Monday. The loan matches the figure requested by the 24 second-tier clubs in order to meet wages and is a victory for EFL chairman Rick Parry. EFL clubs have been economically ravaged during the coronavirus pandemic.

The Premier League has pledged £15 million that will go towards set-up costs and interest, following on from its £50 million grant for League One and League Two clubs in December.

“The transaction was agreed with MetLife Investment Management following a competitive bidding process in which the EFL received solicited and unsolicited financing proposals from a wide range of potential private financing providers and UK banks alongside discussing loan options with the UK Government that could not be progressed due to the restrictions being imposed,” the EFL’s statement read.

The loan commitment from MetLife Investment Management will provide immediate additional funding to Championship Clubs, who have now played the equivalent of a full season without spectators in attendance and have lost approximately £150 million in gate receipts and other matchday revenue.

“The size of the loan facility being provided by MetLife Investment Management matches the total amount requested by Championship Clubs,” said the EFL statement.

Parry said: “This past month has marked an unwelcome anniversary for football with supporters now being unable to attend matches for a 12-month period, resulting in multiple negative consequences. This is therefore a much welcome, timely package of support for Championship Clubs, whose operations have continued to incur significant costs without generating anywhere near normal levels of revenue.”

Contact the writer of this story, Samindra Kunti, at moc.l1618091531labto1618091531ofdlr1618091531owedi1618091531sni@o1618091531fni1618091531