Norwich City able to access £8.33m loan after Premier League agree EFL bailout
Norwich City will have access to a loan provided by the Premier League after they agreed a £250m bailout with the EFL. - Credit: Sonya Duncan
Championship clubs have received a financial lifeline after the EFL and the Premier League agreed a £250million rescue package to help relieve the immediate pressures shackling clubs due to the effect of the coronavirus pandemic.
Norwich City recently forecasted a loss of up to £25m caused by a dramatic loss in matchday revenue owed to games being behind closed doors. The severity of the situation for other clubs in the pyramid has been harder, with some fearing for their future.
League One and Two will be handed a £50m grant whilst the Premier League will provide a further financial commitment to assist the EFL in securing a £200m loan facility that Championship Clubs will be able to utilise interest-free.
The Canaries could now take a loan capped at £8.33m per Championship Club to help ease the financial burden of the pandemic, with monies received to be repaid by June 2024 using parachute payments or other central Premier League or EFL Distributions.
EFL Chairman Rick Parry is delighted with the agreement. - Credit: PA
Speaking about the agreement, EFL chair Rick Parry said: “Our over-arching aim throughout this process has been to ensure that all EFL Clubs survive the financial impact of the pandemic. I am pleased that we have now reached a resolution on behalf of our Clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.
“I would like to thank Richard Masters and Gary Hoffman for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most.”
Some EFL clubs have feared for their future due to the crippling effects of the coronavirus pandemic. - Credit: PA
According to Premier League chief executive Richard Masters, the top-flight cares for the wellbeing of the English football pyramid and the agreement, signed off by top-flight shareholders, graphically illustrates that fact.
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“The Premier League is a huge supporter of the football pyramid and is well aware of the important role clubs play in their communities. Our commitment is that no EFL club need go out of business due to COVID-19.
“All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League Shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.
“We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times.”
