Blades will not rush a decision on furloughing
SHEFFIELD UNITED are keeping all options open when it comes to furloughing non-playing staff as they try to balance protecting their business against public opinion.
Furloughing workers without asking the Government to pick up the bill is one of the measures under consideration at Bramall Lane.
It is understood the Blades were considering putting fewer than 50 full-time employees on furlough, but have put that on hold because they are sensitive to the response which saw Liverpool backtrack on similar plans.
There is growing disquiet at the thought of Premier League clubs with billionaire owners using the Government’s Coronavirus Job Retention scheme whilst their players have yet to agree any change to their pay. Under the scheme, businesses of all sizes and types can ask the Government to pay 80 per cent of employees’ wages to keep them on the books, up to a maximum of £2,500 per individual per month.
There is, however, an option to furlough staff currently unable to work without asking the Government to pay. This could free them up to work for the NHS or other vital services.
Tottenham Hotspur, Newcastle United, Bournemouth and Norwich City are under increasing political and public pressure to rethink after furloughing non-playing staff. Liverpool had also planned to use the scheme, but quickly changed their mind on Monday after the negative response from fans, former players and the wider public.
Some clubs, such as Manchester United, Manchester City and Burnley, have announced they will not go down that route.
Like Liverpool, Norwich and Bournemouth, Sheffield United had planned to pay the remaining 20 per cent of wages themselves although they are not obliged to. This is the approach which has been taken by Football League clubs Bradford City, Doncaster Rovers, Huddersfield
Town, Middlesbrough and Sheffield Wednesday. The first two have furloughed players as well as back-office staff.
Sheffield United are not in the same financial league as Liverpool, Tottenham and the Manchester clubs, nor does their owner Prince Abdullah bin Musa’ad bin Abdulaziz Al Saud have the same wealth as his counterparts there.
The Reds recently announced pre-tax profits of £42m for a period which did not include winning June’s Champions League final.
The Blades are playing Premier League football for the first time in 12 years this season, and recorded a net operating loss of £21.3m getting there in 2018-19. The loss would have been larger but for the club record £11.5m sale of David Brooks to Bournemouth.
Winning promotion to the top division transformed their finances, however, and they were expecting a payday they had not initially budgeted for thanks to their performances on the field. They were seventh when Covid-19 brought a suspension of Premier League games, with the possibility to move up to fifth by winning their game in hand.
Each place in the table is worth around £2m in prize money on top of television revenue running into nine figures, and finishing seventh could qualify them for a first European campaign. That income could be severely hit if the season is not completed, with estimates it could cost the club around £38.8m in television money plus £3.1m in matchday and commercial revenue.
In a speech to the FA Council yesterday, chairman Greg Clarke said: “We are committed to finishing the professional football season as this resolves the issues of promotion and relegation together with title winners on merit. However, we may not be able to as football is not our priority, human life is, and we will do as the Government directs.”
The FA has also furloughed staff.
In anticipation of their impending windfall, the Blades broke their transfer record for the fifth time since winning promotion in January, signing midfielder Sander Berge from Genk for £22m, paid in instalments.
Premier League footballers remain on full pay after extensive talks with their union, the Professional Footballers’ Association.
On Friday, the league recommended a 30 per cent wage reduction — a 10 per cent cut and 20 per cent deferral — but with the PFA standing firm amid concerns the money could just be used to subsidise club owners’ losses and not go to the areas they most want to help, namely nonplaying staff, clubs lower down the pyramid and the NHS, clubs are now expected to negotiate individually.
Championship club Leeds United’s players were quick to agree a wage deferral to protect jobs.
Conference North outfit York City have closed their club, furloughing all employees, and although their wages will not be subsidised, chairman Jason MacGill has promised to pick up the 80 per cent if they do not return to work before support from the Job Retention Scheme ceases.
Hull City, who have furloughed non-playing staff but will only top up the wages of those whose pay drops below 80 per cent because they are not covered by the £2,500 threshold, have written to their players requesting a 20 per cent pay cut. No agreement has yet been reached, but the coaching staff have volunteered to take the reduction.
We are committed to finishing the season as this resolves the issues. FA chairman Greg Clarke in a speech yesterday to the FA Council.