‘WE HAVE NEVER SEEN Clubs face uncharted financial future even Euro 2020 could be if this season is played in the summer months delayed until 2021
Season should be played, says LMA chief
THE shutdown of Scottish football is set to have far-reaching and long-term financial implications for clubs even if Euro 2020 is postponed and the current season is completed during the summer months, it was last night claimed.
UEFA, who last week suspended the Champions League and Europa
League, has invited representatives of all 55 of its member associations to attend a meeting tomorrow via video conference to discuss the response to the coronavirus crisis.
It appears inevitable the European Championship, scheduled to be staged in 12 countries in June and
July, will be moved to 2021, creating a potential window for domestic leagues and cup competitions to be finished.
The Italian FA are set to become the first association to ask UEFA to postpone EURO 2020 to allow them to complete the Seria A season.
Dr Dan Plumley (above), a senior lecturer in sport business at Sheffield Hallam University, believes that is the best case scenario for Ladbrokes Premiership clubs.
However, he anticipates that it would still create serious logistical problems for clubs.
“What about players who are out of contract at the end of June?” he said. “If games get pushed back to July what do clubs do? Do they need to offer temporary contract extensions so they can fulfil the games? Or do they have to fill the squad with youth players because legally they can’t use the out-of-contract players?
“It also disrupts the whole financial and business model of a club. A club will know each year that the bulk of their money comes in from season ticket sales around now. But a lot of fans will hold off because they don’t know what is happening this season.
“Historically, fans are paying for season ticket money around now for next season. Most fans pay up front. Clubs realise that money at the start of the season and it is factored into budgeting costs. So that money is there and ready to go and you can plan for the new season.
“What clubs will do is defer that income until the summer. Season ticket money keeps clubs in Scotland going. This creates uncertainty about what happens next season, it creates real uncertainty moving forward. What happens with the transfer window? Does that get pushed back?” Dr Plumley predicted that both options available to the SPFL – to declare the season null and void or to promote or relegate clubs based on their league positions on March 13 – if they are unable to complete the 2019/20 campaign at a later date will create issues.
“There are so many unknowns at the moment,” said Dr Plumley. “There is no benchmark, no comparable situation. We have never seen anything like this in terms of null and voiding a season at a time when there is so much money in the game and the repercussions that would have.
“The fan with a season ticket is going to be more of an issue for clubs in the lower leagues because they rely more on match day income to drive revenues. The lifeblood of their finances is fans and season ticket money. If you are talking about full refunds it would have a significant impact.
“I am sure some fans won’t
ask for a refund, but some will. If fans start asking for money back do you pro rata it and say: ‘Look, we have got four or five home games left, so that is what we will refund, the games which are still to be finished’. That would work okay if the league stands, but not in a null and void situation.
“With regards to sponsors, it will come down to what is in the contract. But there will be some detail in there about the number games and exposure and how their logo is used inside the stadium and at promotional events. If those things don’t happen the sponsors will have grounds to seek compensation.”
Hearts, who were four points adrift at the bottom of the Premiership with eight games remaining when football was suspended on March 13, have indicated they may take legal action if they are relegated.
Dr Plumley continued: “I can understand the rationale behind wanting to crown champions and take relegation places at this point in time if the fixtures can’t be completed, but that brings with it some real financial challenges and potential legal challenges by clubs.
“The relegated clubs will rightly turn around and say: ‘Hold on a minute! We have eight games still to play! We could have got out of that situation. If you relegate us we are now looking at a reduction in revenue and a reduction in gate money next season’.
“That’s not the club’s fault, that’s the league that’s taken that decision. You could get to the stage of legal challenges.
“The obvious benefit of a null and void situation and why it will be on the table is if you reset everything to August 2019 some of those financial problems are negated. It is such a tricky balance.”
DR PLUMLEY believes it is impossible to accurately predict what course of action the SPFL will take if they are unable to complete the season.
“Let’s not forget that it is the clubs who vote on these agreements,” he said. “The
BILLY BROWN anticipates there will be a backlash from bosses against ‘unfair’ plans to potentially cancel the Scottish football season and honour current league positions.
The former Hearts and Hibs assistant, who now serves as chairman of the League Managers Association [LMA], plans to hold talks with coaches at all levels of the game in the coming week amid the current shutdown.
However, he has balked at the idea of calling off the campaign with immediate effect and dishing out trophies, promotions and – potentially most damaging of all – relegations based on the standings as of March 13. And he has urged those in the corridors of power to canvass the opinions of managers, insisting they are too-often ignored.
The 2019/20 calendar could be scrapped in the face of the coronavirus outbreak, in which case Celtic would be declared champions and Dundee United, Raith Rovers and Cove Rangers would win promotion. Hearts, Partick Thistle and Stranraer would be relegated.
Brown said: “My opinion is that would be unfair and I would have thought the majority of managers would be against that plan. I think it will be an unpopular idea – and the wrong decision.
“The season needs to be finished. Granted, Celtic are going to win the league, but Hearts are only four points adrift with eight games left. This isn’t a personal thing because I worked there, but how can you relegate a team who could have survived?
“Dundee United are likely to win promotion, but what about the teams below them still vying for promotion? And all the teams that would have real financial problems if they are relegated?
“I don’t blame, for example, Neil Lennon calling for Celtic to get the title. But they’ll win it regardless and there are a lot of other issues to be taken into consideration. Do we kick Brechin [bottom of League 2] out of the SPFL and threaten their survival?
“I’ll be talking to managers over the coming week and the consensus will become clearer. But the opinion of the managers should be considered,
“My view is the season should be completed behind closed doors. It’s not what football should be about, you need a crowd atmosphere – but I think it remains our best solution.”