News out of Arsenal is that they now have a player trading facility.? In fact it has been said that is a £40m 'player trading facility'.
Arsenal chief Keith Edelman has come out and announced it and has also added that the club is ready to go into debt to boost Arsene Wenger's squad this summer.
He told the Daily Star, "A football club should not borrow to buy players. However, if you are building a fixed asset - such as our stadium - which produces a positive return after you have paid back the debt, then this a sensible approach. The reason we have a trading facility was because we would be disadvantaged without it if we wanted to sign players.
"We were concerned that with our debt, clubs would not take our credit. This facility allows us to cover the fact we may have to give a letter of credit to back up second and third year payments to guarantee payment."
I am no business major so if anyone can provide me a simple man-on-the-street explantion, it will be much appreciated.
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