EFL announces £50m relief package for clubs in response to coronavirus
The English Football League has announced a £50m package to help clubs enduring immediate cashflow problems from the suspension of matches because of the coronavirus crisis, in a sombre but determined statement following a meeting of its board on Wednesday.
A set of five objectives stated by the board for enduring through the crisis starkly included: “Enable the EFL to continue to function as a business.”
The statement, released at 6.05pm after a meeting lasting more than four hours at the EFL offices in Preston, emphasised the league’s “primary objective” is to finish the current season, but gave no likely resumption date and notably did not say it should be concluded by 30 June. The overwhelming majority of clubs, including Leeds and West Bromwich Albion who are seven and six points clear respectively in the automatic promotion places, are understood to have told the league’s board they want the season to be completed, not ended now.
The feeling among clubs is that whenever football can be played again, possibly starting behind closed doors, the season should be completed, with promotion and relegation, decided on performance as in normal times. There is a recognition that given the current course of the Covid-19 virus, and the government’s advice on “social distancing”, which includes not meeting friends and family, and the decision to close all schools from on Friday, football may not realistically resume in time to complete the season by 30 June.
“The primary objective, in order to protect competition integrity, is to deliver a successful conclusion to the 2019-20 season, subject to the overriding priority around health and wellbeing,” the league said in its statement. “Plans continue to be developed on the agreed principle that it is in the best interests of the EFL and clubs to complete the current season at the appropriate time. The EFL is continuing regular dialogue with the government and relevant health authorities and, as and when more information is known regarding the scale and extent of the coronavirus outbreak in this country, a decision will be taken on the resumption of the League’s fixtures.”
The £50m funding package was approved after clubs had begun to tell the EFL as soon as matches were suspended on 13 March that they would immediately struggle without ticket and other income and would have to make redundancies. The measures involve distributing now the remaining TV and sponsorship money due to clubs at the end of this season, and making available loans of next season’s first payments. Clubs will not have to repay these loans, but clearly will not receive the same money again next season. The EFL is also helping its clubs to make use of PAYE and business-rates reliefs, and potentially government-backed loans, announced by the chancellor, Rishi Sunak, as part of his emergency measures on Tuesday.
“The [£50m] cash injection is included as part of a series of measures, that includes potential government support, to help clubs and their associated businesses through this period of uncertainty,” the statement said.
The Premier League has not yet engaged in detailed discussions about helping EFL clubs, as it has to shore up its own arrangements with Sky and
BT Sport, and its sponsors, while the game’s suspension continues.
The five stated objectives issued by the EFL were: “Ensure the health and well-being of our clubs’ employees, supporters and communities; make a positive contribution to the UK’s efforts to tackle coronavirus; protect the EFL’s financial model and club finances; enable the EFL to continue to function as a business; and: deliver a successful conclusion to the 2019-20 season.”