The English Football League (EFL) has secured a £117.5 million loan from MetLife Investment Management to provide a financial boost for clubs in the Championship after the COVID-19 pandemic.
The 24 Championship clubs requested a loan, which has been matched by MetLife's institutional asset management business, for teams to be able to meet PAYE liabilities after severe losses have incurred from the coronavirus crisis.
The Premier League has pledged £15 million that will go towards set-up costs and interest, following on from a £50 million grant provided to League One and League Two clubs in December 2020.
Their were a number of financial providers and UK banks who bid to offer the loan option to the EFL, before the body decided upon MetLife.
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.”
Author: Jake Wilkin