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EFL look to Bank of England for loan

Arsenal and Tottenham Hotspur, together with the Football Association showed the way.  Now the EFL is hoping to secure a low interest loan from the Bank of England under its Covid Corporate Financing Facility (CCFF).

The scheme, which was Treasury backing, is intended to help 'larger' companies with cash flow problems arising from the pandemic.   The central bank buys commercial paper issued by businesses.

The EFL would like to borrow as much as £225m, but £150m is a more likely figure.   However, private lenders are also interested in lending money to the EFL, including US insurer MetLife.   Perhaps they would like a deal similar to that negotiated by Serie A where private investors in effect acquire a stake in the league.

It should be noted that the Premier League has pledged to cover £15m of interest payments and loan costs for Championship clubs.


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