FA BRACED FOR HUGE CUTS

THE FA are finalising details of a major cost-cutting operation which will see all their head coaches, led by Gareth Southgate and Phil Neville, accept a significant reduction in their wages later this week.

Sportsmail revealed last month that wage cuts were on the cards for senior staff at the FA and that process is now being implemented, with England manager Southgate expected to take a £1million cut in his £3m a year salary. Technical director Les Reed has briefed all national team coaches about the FA’s financial situation in conference calls over the past few days and the cuts will be applied throughout the administrative and footballing parts of the organisation, including chief executive Mark Bullingham and all members of his senior leadership team. The governing body are budgeting to lose more than £100m as a result of postponed events due to the coronavirus crisis and have already taken a major hit, with Sportsmail revealing last Saturday they have not received a payment of tens of millions of pounds from overseas broadcasters for the FA Cup quarter-finals. The FA’s priority is to maintain levels of investment in grassroots football and protect as many of their 850 staff jobs as possible. Despite generating record turnover of £375.5m in the most recent financial year ending July 2018, the FA are a not-for-profit organisation and re-invest the majority of their income, with £144m spent on operating costs and £127.5m on grassroots projects. The FA’s 2018 financial performance was boosted by bonus payments arising from England’s run to the World Cup semi-finals, as well as increased rental and match-day revenue resulting from the full season Tottenham spent as tenants at Wembley. Therefore, a period of belt-tightening was expected before the suspension of the season caused by coronavirus. The timing has been particularly unfortunate for the FA, coinciding with the most lucrative part of the year at Wembley, with the conclusion of the FA Cup, the EFL play-off finals and numerous other major events postponed indefinitely. To compound matters, the FA’s outgoings have increased significantly over the last 12 months, with £9m spent on improving Wembley ahead of its major role in staging five European Championship matches. That tournament has now been postponed until 2021.