Arsenal refuse to use government furlough scheme as 'productive' talks continue over player wage deferrals

'What is clear is that this is one of the most challenging periods in our near 134-year history', the club said in a statement

Arsenal's Pierre-Emerick Aubameyang celebrates after scoring against Everton at the Emirates Stadium on February 23, taking his Premier League tally for the season to 17. EPA

Pierre-Emerick Aubameyang scores Arsenal's third goal past Jordan Pickford of Everton. Getty Images

Pierre-Emerick Aubameyang applauds fans after the match. Reuters

Arsenal's Pierre-Emerick Aubameyang celebrates with Eddie Nketiah after the match. Reuters

Arsenal's Mesut Oezil during the match against Everton. EPA

Arsenal manager Mikel Arteta congratulates Granit Xhaka, left, and Shkodran Mustafi. AP

Pierre-Emerick Aubameyang scores against Everton. EPA

Arsenal have said they will not use the UK government's furlough scheme to pay employees during the coronavirus shutdown as the Premier League club continues "productive" pay discussions with players.

Fellow English clubs Tottenham Hotspurs, Bournemouth, and Liverpool drew  plenty of criticism for turning to the government scheme to help pay the wages of non-playing staff, although all three clubs have since reversed their decisions.

Norwich City and Newcastle United also announced they would use the service - which requires the government to pay 80 per cent of wages up to £2,500 per month - and neither have yet announced they are following suit.

Arsenal have confirmed they are not using that scheme in a statement that outlined their intention to pay staff in full during this uncertain period, while extending casual employees' pay until the end of May.

The club's executive team have voluntarily waived more than a third of their earnings over the next year to cope with a challenging time that owners Kroenke, Sports & Entertainment "are fully committed to supporting Arsenal through".

A statement read: "The suspension of football and the broader global economic impact of the virus mean that many of our revenue streams are on hold or are at risk.

"We have always aimed to operate on the basis that the money we earn is reinvested in the team, the wider club and invested into our community.

"The potential impact on our revenue streams puts our operating model under pressure. We know that this crisis will pass, and normality will resume, but timeframes cannot be known with any certainty.

"The potential financial impact is significant so we must be responsible and act now to best protect Arsenal from what might happen in the months ahead.

"What is clear is that this is one of the most challenging periods in our near 134-year history."

Arsenal have made it clear to employees through video conferences, newsletters and team meetings that they are "not considering redundancies", with all employees receiving their full salaries.

The club intend to continue on that track and say they "are not currently intending to use the Government's furlough scheme".

The club is still working on an agreement with players. Arsenal's squad this week reportedly rejected a 12.5 per cent pay cut for a year, with that money repaid if qualification was secured for next season's Champions League.

"Our players have been keeping very busy during this difficult period, working hard at home on both their fitness and tactical work while training is suspended," Arsenal's statement read.

"Over the past 10 days we have been in discussions with them around the potential financial challenges ahead, and how we are planning for those now.

"These are productive and ongoing conversations around how our players might support their club in an appropriate way. We have not and will not make any comment on this matter until these private discussions have concluded."

Southampton were the first Premier League club to confirm that players and other high earners would defer parts of their wages of the upcoming months, swiftly followed by West Ham United.

Some of the biggest clubs across Europe, including Barcelona, Juventus, and Bayern Munich have struck a deal on pay cuts with players, coaching staff and board members - some of them up to 70 per cent - to safeguard the salaries of other employees.