The Courier & Advertiser (Fife Edition)
Palios predicting insolvencies
Former FA chief executive Mark Palios has warned EFL clubs 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.
And 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.
Speaking on Ridge On Sunday on Sky News, Palios warned: “Whilst you may look at the ‘hole’ which has been articulated as £200 million to September, I think it’s bigger than that.
“There is a real financial maelstrom coming towards the league at this point in time.
“I personally believe we haven’t seen the worst of it yet, and during the course of the summer you’ll see a lot more financial stress on the clubs as we move onwards and continue to pay wages.
“I think what you’ll see is a lot of clubs will stumble down the road to insolvency. You might see people getting High Court orders against them. They’ll bumble on for a period of time.”
With League One clubs still struggling to reach a consensus on completing the season, Palios, whose club are in the bottom three, repeated his belief that relegation should be scrapped to help ease the financial burden.
Palios also proposed a clarification of rules over clubs which enter administration, although the current points deductions can be appealed on the basis of so-called ‘Force Majeure’ events.