Birmingham stars taking cut to save backroom jobs
Radical move to save EFL clubs by putting players on sabbatical with Government help to pay wages
a £50m relief package to clubs who have been hit by the absence of gate receipts, which was largely an advance on the money they are due from their £119m-a-year deal with Sky Sports. But that cash will be spent within the next four weeks.
With no end to the shutdown in sight, the EFL have concluded that more radical measures may be required including furloughing lower-league players. As a result, while the majority of clubs are confident of being able to meet their payroll obligations for March, many expect major problems from April onwards.
Under the Government scheme announced last week, furloughed workers remain on the payroll, but are not paid, with employers able to apply to HMRC for grants to cover 80 per cent of salaries up to a maximum of £2,500 a month.
Furloughed employees are not permitted to work so clubs in the scheme would not be able to force their players to train, even at home, and any fitness work during the lockdown would be voluntary.
The EFL have yet to decide at what level to start the scheme, but it is unlikely to apply in the Championship where most players’ wages are far higher than £2,500 a month.
Players in League One and League Two have been warned that they could be furloughed — with Sportsmail last night seeing such a letter from Mansfield chairman John Radford — and to be prepared to take a pay cut during the period in which they are not playing.
Clubs cannot force players to accept and they would be able to leave on free transfers after two weeks under breach of contract. However, given all clubs are in the same boat, many players would have no club to move to.
In a separate development yesterday, Birmingham became the first Championship club to agree a salary deferral scheme with their players. The majority of Pep Clotet’s first-team squad are understood to have agreed to defer up to 50 per cent of their weekly wages above £6,000 from next month in a move that should ensure that the non-footballing staff at St Andrew’s can continue to be paid in full. Captain Harlee Dean said: ‘Some people can help and some people can’t help, it’s just the nature of the beast. I am going to help because I can and I feel like we should.’
Leeds, Derby and Sheffield Wednesday have spoken to their players about agreeing a similar deferral. The EFL support such moves from Championship clubs as a necessary measure to help safeguard the future of clubs who in addition to losing ticketing revenue could also be forced to repay television money.
Premier League players are also facing pay deferrals. Sportsmail understands that top-flight stars have now been told to expect temporary wage cuts while no football is being played.
The PFA are keeping players updated on developments and agents have also informed their stars to expect the call from clubs with regards to pay decreases sooner rather than later. A PFA statement read: ‘As with other industries, the current Covid-19 crisis is having a severe impact on the finances of the game.
‘ Several clubs have already approached players with a view to imposing pay deferrals.
‘We have called for an urgent meeting with both the Premier League and the EFL to discuss how we might proceed.’
Players in the top flight will likely agree on pay deferrals, but reaching a settlement in the lower leagues will be far more difficult.
League One MK Dons have laid off all of their non-playing staff.
The Football League have opened negotiations with their clubs and the PFA over an extraordinary scheme that would see lower-league players put on sabbatical for the remainder of the lockdown.
The clubs want to access funds made available to business as part of the Coronavirus Job Retention Scheme announced by Chancellor Rishi Sunak last week, with the Government paying 80 per cent of their players’ wages — up to £2,500 a month.
Sportsmail has seen correspondence sent by clubs to players warning that they could be ‘furloughed’ over the next few weeks as they cannot afford to pay their wages.
The EFL are seeking the support of the PFA for the radical plan they hope will help keep the 71 clubs in business if there is a prolonged shutdown. They are also seeking clarification from the Government.
The proposed scheme would not apply to managers or coaches, who do not have standard contracts like the players.
The PFA are understood to have indicated a willingness to provide additional funding to top up the salaries of players — most of whom earn more than £2,500 a month — although have not made a firm commitment.
The players’ union have yet to make a financial contribution to struggling clubs during the coronavirus crisis, but have the means to do so as they have cash reserves of over £50million. The eFL last week provided