ARSENAL face massive financial losses with executive season-ticket holders reluctant to renew their VIP deals, according to reports.
The prawn-sandwich brigade have been unable to enjoy the Emirates entertainment – and hospitality – for almost a year with matches played behind closed doors.
Arsenal could make massive financial losses if VIP season-ticket holders do not renew their dealsCredit: Getty Images – Getty
And with around a third of executive deals expiring, the Mail report many are opting against stumping up the cash with so much Covid-19 uncertainty ongoing.
Some income was secured by taking in payments for this season which can be used as credits in the future – although these would be refunded if fans decide against extending their tickets.
Executive seats – the posh seats in the boxes at the Emirates – make up around 15 per cent of the stadium’s capacity.
However, revenue from those ticket sales account for 40 per cent of match-day income.
And the report adds the North Londoners are projecting for losing out on around £100million this season with the lack of gate receipts as well as drops in broadcast and commercial revenue.
Arsenal last welcomed a full 60,000 crowd into the Emirates on March 7 for the 1-0 win over West Ham.
They did have 2,000 fans in attendance for the December matches at home to Rapid Vienna and Burnley before London went into Tier 3.
The Gunners made 55 staff members redundant in August – much to the anger of many supporters who highlighted the mammoth wages players were on, especially Mesut Ozil.
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Ozil’s £350,000-a-week contract was terminated in January to allow him to leave and cut the German from the wage bill.
But the club also took out a £120m loan from the Bank of England last month to help deal with the financial struggles.
A club statement read: “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 Corporate Financing Facility (CCFF).
“As a result, we are taking a short-term £120m loan through this facility to partially assist in managing the impact of the revenue losses attributable to the pandemic.
“This is a similar approach to that taken by a wide variety of major organisations across many industries including sport, and is repayable in May 2021.
“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.
“The CCFF is in addition to the loan provided by our owners Kroenke, Sports & Entertainment that enabled us to refinance the debt on Emirates Stadium in August last year.”
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The posh seats have been empty for the last 11 months at the EmiratesCredit: Getty Images – Getty
The Emirates has been empty for all but two Arsenal games since March 7 – with 2,000 fans allowed in for two matches in DecemberCredit: Getty Images – Getty
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Source: Soccer - thesun.co.uk
