Palios fears for future of EFL’s clubs

FORMER FA chief executive Mark Palios has warned EFL clubs including Sunderland - the financial impact of the coronavirus pandemic could be even greater than the £200 million blow first feared.

EFL chairman Rick Parry estimated the cost of the shutdown earlier this month but Palios, also chairman of League One Tranmere, believes the sum will continue to grow.

He called for more talks between the EFL and the Professional Footballers’ Association and a relaxation of the league’s rules governing administration in a bid to mitigate the effects.

Palios

(pictured right) warned: “While you may look at the ‘hole’ which has been articulated as

£200 million to September - I think it is bigger than that.

“There is a real financial maelstrom coming towards the league.

“I believe we have not seen the worst of it yet and during the course of the summer you will see a lot more financial stress on the clubs as we move onwards and continue to pay wages.

“I think what you will see is a lot of clubs will stumble down the road to insolvency.

“You might see people getting high court orders against them. “

With League One clubs still struggling to reach a consensus on completing the season, Palios repeated his belief relegation should be scrapped to help ease the financial burden.

Tranmere are in the bottom three and Palios insisted: “We don’t want to have a decision foisted upon us which is going to affect us financially.

“Why would you, in terms of certain clubs, foist on them an even worse position?”

Palios also proposed a clarification of EFL rules regarding clubs which enter administration, although the current points deductions can be appealed on the basis of so-called ‘Force Majeure’ events.

He added: “This is a consequence of a pandemic, so I think they need to be considering clubs may need to go to the protection of administration.

“It is a rescue procedure and I think it needs to be modified for the current circumstances.”