Connect with us


6 Championship clubs worried they could go bust without financial backing

6 Championship clubs are worried they could go bust without there being any sort of financial backing to help get them through the 2020/21 season.

In a survey issued by Sky Sports News, eight clubs also say they have, or will have to, make club staff redundant.

The survey also got responses from 13 League Two clubs, 85 per cent of them said they were worried about their current financial situation and 92 per cent said the government should do more to get fans back into stadiums.

The Premier League insists its £50m rescue package remains available to the EFL, despite Championship, League One and League Two clubs turning down the offer on Thursday.

EFL clubs unified to turn down the offer and insisted they would reject any help which excludes any of its members.

The EFL said it wanted a deal which covered all of its teams after a meeting of its member clubs on Thursday.

The EFL said in a statement: “The need for continued unity across the membership base was fundamental to discussions across all three divisions, and therefore there was a strong consensus that any rescue package must meet the requirements of all 72 Clubs before it can be considered in full.

“The League has been very clear in its discussions of the financial requirements needed to address lost gate receipts in 2019-20 and 2020-21, and while EFL clubs are appreciative that a formal proposal has now been put forward, the conditional offer of £50m falls some way short of this.”

One of the Championship clubs who responded said: “We can survive in the short and medium term due to player trading and parachute payments but ultimately the club’s finances are fundamentally supported by the return of fans.

“Without that in the medium to long term our business model as a self-financed club no longer works.”

Whilst another added: “Our survival is absolutely reliant on a financial support package, there is only so much longer we can continue like this.”

The survey comes amid the controversy caused by the ‘Project Big Picture’ plans put forward by executives from Liverpool and Manchester United, and which has been supported by EFL chairman Rick Parry, a former chief executive of Liverpool.

On Wednesday, the Premier League announced a “rescue package” for League One and League Two clubs – consisting of grants and interest-free loans totalling a further £50m on top of the £27.2m solidarity payments they have already handed out – but said discussions are ongoing regarding Championship clubs’ financial needs.

www.fanbanter.co.uk – Fan reaction to the latest football news, gossip & funnies

In a statement the Premier League said: “League One and League Two clubs rely more heavily on matchday revenue and have fewer resources at their disposal than Championship or Premier League clubs and are therefore more at risk, especially at a time when fans are excluded from attending matches.”

Speaking before confirmation of the Premier League’s bailout for League One and League Two clubs, Culture Secretary Oliver Dowden said that he had received assurances that no EFL club would be allowed to go into administration.

“Just to be clear, I have had the assurance, from the EFL, that they would not allow clubs to go bust in the short run,” said Dowden, who was questioned by The Digital, Culture, Media and Sport Committee on Wednesday.

“That is not a Government assurance, that is assurances I have received from the sport.”

Eight Championship clubs also said they are losing between 15-40 per cent of their revenue due to the loss of matchday income while games continue to be played without fans. That figure does not include direct gate receipts, Sky Sports reports.

www.fanbanter.co.uk – Fan reaction to the latest football news, gossip & funnies

Two Championship clubs told Sky Sports News their survival was not dependant on a bailout and redundancies were not being considered, with a number also declining to comment.

Clubs are able to postpone PAYE payments to HMRC until the end of this year and stadium rent can also be deferred until January 2021.

However one club official has warned that it was “kicking the can further down the road and each time we kick it gets bigger”.

www.fanbanter.co.uk – Fan reaction to the latest football news, gossip & funnies

Dowden insisted that given Premier League clubs had spent more than £1 billion during the summer transfer window, a deal for the English top flight to provide support to benefit the wider football pyramid was there to be reached.

“The way that football can demonstrate it can governance itself well and properly is to get this deal over the line which is there to be had,” Dowden, who confirmed the Government would not help finance the proposed bailout, said.

“Whereby the Premier League uses its wealth to support the wider football family which is common in other countries and the EFL also comes properly to the negotiating table rather than being distracted by projects like this.”

Fans reacted after reading that 6 Championship clubs are worried they could go bust without financial backing…

Click to comment

You must be logged in to post a comment Login

Leave a Reply

More in Championship