The EFL are to consider a bank loan which could help SIX of their member clubs survive the new upcoming season, with many under pressure financially.
Sportsmail has learned that the league organisation’s executives have spoken to several commercial lenders about a loan, including hedge fund MSD UK Holdings, who have already lent money to several clubs over the last 12 months, including the likes of Championship outfit Derby County and League One side Sunderland.
A commercial loan could be taken out to help some of their clubs because of doubts on whether the Premier League will come in and provide a financial bailout that was demanded of by the Government.
The EFL are looking into a £250million aid package from the Premier League payable over the next four years. However there has been no agreement as of yet, meaning the EFL have to take to other options. The talks with potential lenders are believed to have centered on a phased loan for a smaller amount, to be reviewed monthly.
The clubs lost a combined £50m through missing gate receipts after lockdown at the end of the 2019/20 season. £200m is the expected amount if crowds are not allowed entry throughout the new campaign, which is due to start two weeks today (Friday).
Culture secretary Oliver Dowden made it clear back in May that it was must financial support was handed from the Premier League to the rest of the pyramid as part of Project Restart. But it has been three months since that statement and top-flight clubs are yet to make an offer to lower-league sides and detailed negotiations have yet to take place.
The only assistance provided by the Premier League to date has been to advance the EFL this month’s £55m solidarity money that was paid earlier this summer and half of the next £55m payment due next January, which has been passed on the clubs, along with three months’ worth of Sky Sports TV rights fees to help the clubs start the season.
As a result, the EFL are confident all 72 clubs have enough money to survive until the end of October but, if crowds remain prohibited or severely limited at that stage, further funding will be needed.
The Daily Mail has been told that Wigan, Oldham, Charlton and Southend among those thought to be in danger of failing to survive the season.
It looks like it will be a long wait before thousands of supporters are allowed back through the turnstiles and into the stands again, so a phased loan more preferable to the EFL than handing out single lump sum, as they remain in hope that the clubs’ eventual losses will be significantly lower than their worst-case projection of £200m, that number all depends on the percentage of fans that can attend matches in the upcoming season.
Other reports from Sportsmail state that Championship clubs abandon plans to introduce a salary cap next season, which remains a desire in League One and League Two.
This is all to be looked at and revised later in the autumn of 2020.
Fans reacted with news that the EFL are to consider a bank loan to help SIX clubs survive the new season…
andyc209: assume all clubs get a payment otherwise this penalises well run clubs who spend only what they can afford
the giro fusilier: Let the greedy footballers and clubs go bust. The wages are immoral and the levels of debt disgust me.
Schwarms XV: Yet they can afford billions in transfer fees! Sky subscriptions will stop and revenues will be hit big time! You can only assume that they know what they are doing! Not…
DMUser007: Not the premier leagues job to look after everyone
Premier has been the only league where attendances aren’t needed for a clubs income, rest of the leagues it’s vital, shows how greedy the PL has been that some of the riches could and should have been handed down.
— ?ⓈRichⒽ???????? (@slufch) August 28, 2020
Odd that the Bank of England can give a near interest-free loan to Tottenham but not offer the same against EFL Champ tv revenue/solidarity payments https://t.co/7Chewf4PW7
— Brett Hartmann (@brett_hartmann1) August 27, 2020
— Adam Holder (@adamswfc) August 28, 2020
— vysyble (@vysyble) August 27, 2020
Spent it on legal fees that clubs pay. https://t.co/CnqKsFIPhK
— Mark Hope ?? (@owls_4life) August 27, 2020