Methven teams up with Collins to help clubs from going bust
Sport(DCMS)committee,have produced a blueprint called 'A Way Forward For Football'. It sets out a six-point plan which includes the establishment by the Football Association of a Football Finance Authority (FFA), financially backed by theGovernment,whichwould provide funds to keep clubs affected by the pandemic afloat.
Rather than a loan, the report says, these funds would be exchanged for a minority shareholding of up to 49 per cent. The funding could only be used to meet short-term liabilities and create breathing space to restructure finances, ratherthanontherecruitment of players or improving infrastructure.
An independent director, chosen by a registered supporters' trust or local government authority, would join the board of the club to represent that shareholding, and then either the supporters' trust or local authority could acquire the shareholding at a discount to market value at some point in the future.
Collins has warned an urgent and substantial Government bailout is needed for clubs in the bottom two tiers of the EFL otherwise several could go into administration within weeks.
He told Sky News: "In the next few weeks we could see five to 10 EFL League clubs going into administration. We saw the outcry last summer when two clubs, Bury and Boltonwereintrouble.Ifthathappens there will be huge public demandtodosomething,without Government stepping in, those clubs could go to the wall and there may be others that follow.
"Yes it be would be nice if football could help itself, but it won't be able to do it."
The blueprint says the FFA should set and enforce the EFL's financial regulations, andthattheFFAshouldfeature representation from the EFL, the Professional Footballers' Association and the Football Supporters' Association.
"Withoutthereformsofthe governance of football finances,anybailoutforclubswillbea short-termfix,"Methven–who has a 6% share in Sunderland AFC – and Collins wrote.
"Once the pressure is off, the rules - whatever they are - will be bent and challenged by the owners of clubs intent on short-term success, at the cost of medium-term sustainability."
Former FA chairman Lord Triesman said: "Damian Collins and Charlie Methven have clearly devoted considerable thoughttothefinancialandsocial crises facing football.
"They have identified some very practical routes through to a more secure future and I welcome this wholeheartedly. It is a pity that football so seldom does the work needed itself. But it doesn't. This is therefore an especially important intervention."
A DCMS spokesperson said: "We are in regular, ongoing discussions with the EFL and other football authorities on the impact of coronavirus, how the professional game couldsafelyreturnandhowthe wider football family could be supported."