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COVID-19: Arsenal takes short term loan of £120 million to stay afloat

Arsenal recently applied for a short-term loan valued at about £120 million, in closing the gap of incurred revenue losses.

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Arsenal, a top football team in England, recently applied for a short-term loan valued at about £120 million, in closing the gap of incurred revenue losses caused by the ravaging COVID-19 pandemic.

What you should know

Arsenal met the requirement set by the Bank of England to qualify for the United kingdom government’s COVID-19 Corporate Financing Facility, created in providing short-tenor loans at fair rates to businesses that contribute remarkably to the British economy.

  • The short term loan was taken by Arsenal in maintaining the club’s positive cash flow, so as to be able to pay its footballers and other staff members their wages.
  • Arsenal, like many other leading football clubs in Europe, has witnessed large revenue losses because of the restriction of human mobility, in order to curb COVID-19.

Arsenal issued a statement as regards the short term loan, giving more details on why it decided to go through that route;

“As we continue to work through the implications of the global pandemic on our finances, we can confirm today that the club has met the criteria set by the Bank of England for the Covid-19 Corporate Financing Facility (CCFF).

“As a result, we are taking a short-term £120 million loans through this facility to partially assist in managing the impacts of the revenue losses attributable to the pandemic. This is a similar approach to that taken by a wide variety of major organizations across many industries, including sport and is repayable in May 2021.

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“The CCFF is designed to provide short-term finance at commercial rates during the pandemic to companies that have strong investment ratings and which make significant contributions to the British economy.

It’s important to note that Arsenal’s city rival, Tottenham Hotspur borrowed £175 million from the Bank of England, in 2020 in order to cover losses caused by the COVID-19 virus onslaught

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Follow Olumide on Twitter @tokunboadesina or email [email protected] He is a Member of the Chartered Financial Analyst Society.

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Ex-Real Madrid Striker, David Barral becomes first-ever footballer to be bought with Bitcoin

Former Real Madrid Striker, David Barral has become the first-ever footballer to be bought with Bitcoin.

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Former Real Madrid striker, David Barral, makes transfer history as he became the first-ever professional player to be bought solely with virtual currency, Bitcoin.

Spanish third division side, DUX Internacional de Madrid, simply known as Inter Madrid, has officially signed the 37-year-old after teaming up with their new sponsors, Criptan that deals in cryptocurrency, The SUN reports.

Inter Madrid who are part of DUX gaming, eSports club owned by footballers Borja Iglesias and Real Madrid star, Thibaut Courtois, is yet to disclose the total value of the deal.

READ: Football: AC Milan announces loss of €195million

The Segunda Division B club went to Twitter to welcome their new signing and thank their sponsor.

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“David Barral new player of DUX Internacional de Madrid, welcome to the infinite club! He becomes the first signing in history in cryptocurrencies. Thanks to Criptan, our new sponsor, for making it possible,” the club tweeted.

The 37-year-old, who made over 50 appearances playing in the Real Madrid reserve side, expressed his delight at his latest move. Barral has also played for Spanish La Liga clubs Sporting Gijon, Levante, and Racing Santander.

“Glad to join the project of @interdemadrid with eager ambition and responsibility to continue competing and achieve important challenges in my sports career,” he wrote on his official Twitter handle.

READ: Real Madrid leapfrogs others to emerge the world’s most valuable football club

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What you should know

  • A similar deal was when a Harunustaspor, Turkish amateur side, paid 0.0524 Bitcoin (£385) plus 2,500 Turkish Lira in cash (£841) for Omer Faruk Kıroğlu in 2018.
  • Back in December, Carolina Panthers offensive tackle Russell Okung became the first high-profile athlete in the United States to be paid in bitcoin.
  • Similarly, the Mark Cuban-owned Dallas Mavericks became the second NBA franchise to accept Bitcoin as a means of payment for both game tickets and merchandise.

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Sports

Football: Southampton announces £76.1m loss for 2019/20 financial results

Premiere League side, Southampton FC has revealed a UK£76.1m loss in Covid-hit 2019/20 financial results.

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English Premier League club, Southampton Football Club, has reported a net loss of £76.1million for the fiscal year of 2019/20 ending in June 2020, due to the significant impact of the devastating Covid-19 pandemic.

READ: This is why Dangote may drop plans to buy Arsenal FC

Key highlights of its FY 2019/20

  • Southampton FC incorporated by St Mary’s Football Group Ltd, posted a decrease in the overall revenue down to £126.6m which represents a nosedive of £23m compared to £149.6 reported in the fiscal year of 2018/19, with the net loss before tax up from £41m.
  • As a consequence of the English Premier League ending before 30 June 2020, broadcasting revenue fell to £93.5m compared to £112.8m in 2019 – a drop of £19.3m, despite the Saints finishing 11th in the 2019/20 Premier League season (five places higher than the previous season).
  • With the suspension of the league in March 2020, until Project Restart, which led to matches played behind closed doors, matchday revenue fell to £14.5m with a £2.5m drop compared to £17.0m in 2019.
  • Project restart also coated them an additional £1.5m of net additional costs of sales and administrative expenses in order to enable the men’s first-team squad to train and conclude the 2019/20 season in a COVID-19 secure environment.
  • The Saints reported that the total 2019/20 revenue foregone as a highlight of the significant impact of the devastating Covid-19 pandemic over the financial year was £10.3m, with a further £20.9m revenue deferred into the year ended 30 June 2021.
  • However, the club said revenue would have shown up a £8.2m (5.5%) increase up to £157.8m for the 2019/20 fiscal year, had it not been lost or deferred due to the ongoing Covid-19 crisis.
  • The transfer business was significantly impacted as the Summer 2020 transfer window did not open until July 2020, after the financial year ended.  The sales of Charlie Austin and Gallagher in the Summer 2019 window helped see a profit of £13.9m compared to £20.9m made in 2019.

READ: Manchester United: A football club or a business

What the Southampton FC MD is saying

Southampton Managing Director, Toby Steele, said:

  • “As with many companies and industries, the group is in the midst of a challenging financial environment due to the impact of the Covid-19 pandemic. This is reflected in the financial results for 2019/20 and necessitated the group to restructure its debt facility during June 2020. Despite these challenges, our group-wide staff have shown great resilience, facilitating a smooth return to training and matches for men’s and women’s teams across all age groups, as well as the return of fans, albeit briefly, during season 2020/21.
  • “We also have great pride in the work of the Saints Foundation, in particular the collaboration with group staff in the ‘Saints as One’ initiative during the early stages of the pandemic. The ongoing support of our fans, many of whom purchased a 2020/21 season ticket at a time when the return of football was unknown, is greatly appreciated and it is our hope to get fans back where they belong, supporting all our teams in person, in greater numbers as soon as possible.”

READ: Manchester City owner, Sheikh Mansour spends £760k on old FA Cup Trophy

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Manchester City owner, Sheikh Mansour spends £760k on old FA Cup Trophy

Manchester City owner, Sheikh Mansour has paid almost £760,000 to buy the oldest surviving FA Cup.

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Manchester City owner, Sheikh Mansour bin Zayed, purchased the 1896–1910 Football Association Challenge Cup (FA Cup) at an auction.

The FA Cup was the first trophy won by Manchester City 116 years ago when they defeated Bolton Wanderers 1-0 in 1904 final, making the Manchester club the first professional football club from Manchester to capture a major honour. They are now the proud custodian of their first trophy.

READ: Barcelona overtakes Real Madrid on biggest earners’ list 

The club tweeted, “We are delighted to announce we are now the proud custodian of the 1896–1910 #FACup following the recent purchase of the trophy at auction by Club owner, His Highness Sheikh Mansour bin Zayed.”

READ: Manchester United: A football club or a business

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READ: Billionaire, Uzor Kalu wants to buy 35% stake in Arsenal FC

Etihad chairman, Sheikh Khaldoon al-Mubarak, on commenting on the purchase said: “This Cup is a visible reminder of the rich and long history of English football to which Manchester City is inextricably entwined.

READ: Solskjaer sanctions Pogba and Lukaku’s €212 million sale amidst low budget

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“Winning this actual trophy in 1904 was a turning point for the Club and for the city of Manchester in that it firmly cemented football in the heart of its community.”

READ: Chelsea Football Club owner sells gold mining stake for $1.4 billion

What you should know

  • The cup was previously the property of West Ham co-owner, David Gold, before he put it up for sale last year September by an anonymous buyer which is now revealed to be Manchester City’s owner.
  • Auctioneers Bonhams had announced that a particular item of silverware was sold for £760,000 ($1.03m).
  • The cup is the forerunner of the current FA Cup and also the oldest surviving piece of FA Cup silverware in England and the one first used in 1871 stolen from a shop while on display following Aston Villa’s triumph in 1895 and that was the last time it was seen.
  • Originally, there were fears that the trophy would be bought privately and taken overseas, before Mansour stepped in to ensure the trophy will remain in England for the benefit of English football.
  • The trophy has been offered to the National Football Museum in Manchester, England on loan, where it has been housed for the past 16 years, 2005.

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