The EFL announced yesterday, Monday 29 March, the agreement of a new £117.5m funding package from MetLife Investment Management, the institutional asset management business of MetLife Inc., to support Championship clubs in meeting PAYE liabilities. It follows the announcement in December 2020 in respect of up to £50m of financial aid being made available for League One and Two clubs by the Premier League. The Premier League has also provided a payment commitment of up to £15m in support of the EFL securing this loan facility.
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. The EFL also discussed loan options with the UK Government that could not be progressed due to the restrictions being imposed.
This funding commitment from MetLife Investment Management will provide immediate additional funding to Championship clubs. Those clubs 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. The size of the loan facility being provided by MetLife Investment Management matches the total amount requested by Championship Clubs.
EFL Chair, 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.”
Steven J. Goulart, President of MetLife Investment Management and Chief Investment Officer, MetLife Inc., said: “We know that a healthy and vibrant football environment with strong and resilient clubs is important for the U.K. We’re pleased to work with the EFL so that they can support their Championship clubs with additional funding in a time of need, further building a strong and sustainable football landscape and ultimately supporting the communities of which they are a part.”