Arsenal have confirmed an agreement has been reached with Mikel Arteta’s first-team squad and coaching staff over a voluntary pay cut. A 12.5 per cent reduction in annual earnings will come into effect this month once contractual paperwork has been completed.
It brings an end to long-running talks between club chiefs and players over the financial issue caused by the coronavirus crisis.
Arsenal will reduce their players’ pay by 12.5 per cent for the next 12 months although the first-team squad can earn their cash back due to a series of financial incentives related to their performance on the pitch.
According to previous report, qualification for next season’s Champions League will earn every member of Arsenal's playing staff a £100,000 bonus.
On top of that, Emirates Stadium bigwigs have offered the players a huge bonus of £500,000 each if they win the competition in 2021.
Arsenal have admitted they are facing “one of the most challenging periods in their near 134-year history” as a result of the financial impact of the coronavirus crisis.
A statement was issued on Monday evening detailing that a pay cut has finally been agreed after talks with the players, who were initially holding out for a pay deferral.
It read: “We are pleased to announce that we have reached a voluntary agreement with our first-team players, head coach and core coaching staff to help support the club at this critical time.
“The move follows positive and constructive discussions. In these conversations there has been a clear appreciation of the gravity of the current situation caused by the Covid-19 pandemic and a strong desire for players and staff to show their backing for the Arsenal family.
“Reductions of total annual earnings by 12.5 per cent will come into effect this month, with the contractual paperwork being completed in the coming days. If we meet specific targets in the seasons ahead, primarily linked to success on the pitch, the club will repay agreed amounts. We will be able to make those repayments as hitting these targets, which the players can directly influence, will mean our financial position will be stronger.
“The agreement is based on the assumption we will finish the season 2019/20 and receive the full broadcasting revenues. The resulting savings will help cover some of the financial risks we have this season in relation to our matchday and commercial income.
“We are proud and grateful to our players and staff for pulling together to support our club, our people and our community in these unprecedented times which are some of the most challenging we have faced in our history.”
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