The Arsenal Supporters’ Trust have called on the club 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.
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. They said in a statement: “AST would like Arsenal and KSE to provide more information about the new arrangements as they are of material significance to supporters.
“Good governance is based upon accountability and engagement with fans about how the club is run.
“Information on the terms of the loan won’t be publicly available until the accounts for the year to 31 May 2021 are filed at Companies House.”
