The English Football League (EFL) has secured a loan fund worth £117.5million for Championship clubs amid the ongoing coronavirus pandemic.
The funding package has been agreed with MetLife Investment Management, the institutional asset management business of MetLife Inc, and will help clubs in the Championship in “meeting PAYE liabilities”, the EFL said in a statement released on Monday.
In December, the Premier League made available £50m in financial aid for clubs in League One and Two. The top flight also provided a “payment commitment” of up to £15m in support of the EFL’s new loan arrangement with MetLife Investment Management, the statement read.
“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.
“This funding 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 during which time have lost approximately £150m in gate receipts and missed out on other matchday revenue streams.
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“The size of the loan facility being provided by MetLife Investment Management matches the total amount requested by Championship Clubs.”
EFL chairman Rick 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.
“I’d like to thank MetLife Investment Management for the positive, proactive approach they adopted throughout our negotiations and for meeting our requirements in what are a unique set of circumstances. The support will be pivotal to Clubs being able to re-evaluate their financial position and help them start to plot their way out of the pandemic and plan with greater certainty for 2021/22 when we are hoping for the return of fans in large numbers.”
