Insurance pay-out blow for more than 30 Scottish clubs
● Firm recommended by SPFL does not cover teams for ‘contagious diseases’
Several clubs have discovered that they are not due to receive payouts for business interruption caused by “labour disputes or infectious or contagious diseases” following advice from the SPFL to check the terms of any insurance policies they may hold.
The news underlines the financial pressure on the Scottish game as the effects of a potentially long-term shutdown due to the coronavirus outbreak begin to be felt.
With no matches in the foreseeable future, clubs are being denied income from gate money while still having to pay staff.
Hearts have already asked employees to take a 50 per cent pay cut.
The SPFL recommended an insurance firm to cover clubs for events including interruption of or interference with the business.
In a section relating to denial of access to premises, clubs who have this particular policy are covered to a limit of £500,000 “excluding any consequence of labour disputes or infectious or contagious diseases”.
One chief executive of a Championship club who has a policy with the firm in question said he would not be surprised if most clubs were in the same position.
Indeed, The Scotsman understands only six clubs in the top four divisions are covered for the current extremely unlikely set of circumstances.
However, in order for the policy to pay out there would need to be a decision to either end the season now or continue to play behind closed doors. An announcement from Uefa on Tuesday confirmed the intention for domestic seasons to be completed by the end of June. This plan was almost immediately described as “unrealistic” by SFA chief executive Ian Maxwell, among others.
Resuming the season at a later date would not result in a payout for those few clubs fortunate to have insurance which covers business interruption due to a pandemic.
But for the majority of clubs, it does not matter whatever happens. They are not due
“Only six clubs are covered for the current set of circumstances. But for the policy to pay out there would need to be a decision to either end the season or play it behind closed doors”