By Mark Baber
October 12 – The FA has announced a new refinancing arrangement which will save at least £12 million a year and which marks a landmark for the FA as the new Wembley turns into an asset rather than a drag on the finances of the FA Group.
Under the terms of the deal, Barclays, HSBC and Santander have put in place a £300 million corporate loan facility for the FA, replacing the last refinancing package which had been put in place in 2008 by West LB, Barclays Commercial Bank, The Royal Bank of Scotland, Lloyds TSB, Bank of Ireland and Banco Espírito Santo.
The new deal, which sees the FA paying significantly lower interest payments, was welcomed by FA CEO Martin Glenn who said: “This is an important step in our move towards a more focussed, sustainable FA that maximises its investments into football, especially at the lower levels of the game where our support is critical.
“The support of our lenders will allow us to free up more vital and significant funds at a time where we are able to capitalise on lower interest rates.”
Andrew Crean, group chief financial officer, said: “We are delighted to have completed this new financing which will simplify The FA’s funding arrangements and reduce the cost of finance going forward.
“Both of which will assist in meeting our objective of supporting community investments. We are very pleased to be continuing our relationship with Barclays and also being able to work alongside HSBC and Santander going forward.”
Speaking to the Guardian, Crean said: “It is quite a landmark moment for Wembley and the FA because it represents the moment when it becomes an asset of the group. It’s a core part of the group, it’s cash generative and it’s got a financial track record. Going forward, Wembley will be returning cash surpluses to the FA for reinvestment into football.”
With England having enjoyed a highly successful qualifying campaign for the 2016 European Championships, with increasing confidence in the future of events at Wembley and with a good prospect that both Chelsea and Tottenham will be looking to move into the stadium temporarily, Wembley’s financial prospects look increasingly bright.
Contact the writer of this story at moc.l1731750858labto1731750858ofdlr1731750858owedi1731750858sni@r1731750858ebab.1731750858kram1731750858