Clubs urging government to stand up and save EFL
A MAJORITY of the English Football League believe the government rather than the Premier League should take primary responsibility for helping them avoid an impending financial crisis, according to a Mail on Sunday survey of the 72 clubs below the top tier.
The most dire forecasts from those who responded were from a group of League One and League Two clubs who fear that without fans or any external assistance, they may go bust by early 2021.
‘Things could get extremely difficult as early as January,’ one League Two club told us, requesting anonymity having provided financial data. ‘There would be a possibility of going out of business.’
Andrew Parkinson, the chief executive of League One side Plymouth Argyle, hopes a rescue plan can materialise. But he added: ‘We can manage to play games without fans but it is not indefinite... if we stop football survival without revenue and continued fixed costs such as player wages would make the situation untenable.’
Yet in a body blow to any chance of a swift funding resolution, a government source has told this newspaper: ‘We are aware of the strength of feeling but help has already been provided via the furlough scheme and other business assistance. It has been made clear we expect the
Premier League and EFL to work out a solution between them.’
The source said the government decision to prevent fans attending games was under constant review and fans might be back sooner if Covid-19 stops spreading.
Sources within football believe fans are only being kept away from stadiums because of ‘the optics’. One said: ‘It seems ridiculous that thousands of people are congregating indoors at supermarkets, gyms, pubs, restaurants and cinemas but meticulously organised outdoor gatherings of a small part of a stadium capacity can’t go ahead. This government just seems to have a problem with football.’
The MoS survey asked each club how much revenue they would lose if no fans are allowed to attend games this season; how many jobs might be at risk; whether they might go bust, and when; how they have helped their communities during the pandemic; and what assistance they would like, and from where.
Northampton Town of League One’s response to that last question was broadly echoed by every club who responded. A spokesman said: ‘We would look to the government for assistance — our industry has been restricted from trading by decisions taken by the government. All solutions need to be considered and if the Premier League can distribute funds down the pyramid without it placing their own clubs at risk, then this should be explored.’
Premier League clubs will lose more than £800million from matchday and related income without fans this season, and hundreds of millions more in rebates to TV companies. Richard Masters and Rick Parry, respectively the chief executives of the Premier League and EFL have already held face-to-face talks about how the PL can assist the EFL. The EFL say £250m will make up the £50m losses their 72 clubs incurred in 2019-20 plus £200m forecast losses for 2020-21.
But the Premier League, while committed to helping, are reticent to give away money without guarantees it will save clubs in genuine peril, and believe the government should chip in.
The problem is complicated. The PL already gives the EFL clubs more than £400m annually in parachute payments, solidarity fees and academy grants. In this transfer window alone, PL clubs have spent some £200m on EFL players, boosting coffers, albeit mainly in the Championship, and will likely spend more in the ‘extra domestic window’ that lasts a further fortnight.
‘There’s also pushback from clubs expected to struggle this season about giving away millions to clubs challenging for Championship promotion,’ said one source. ‘It seems illogical to give a handout to a club that is effectively your rival for a place in next season’s Premier League.’
Things could get extremely difficult as early as January. We may go out of business