English clubs fear for future

LONDON • Forced into lockdown by the coronavirus pandemic, English teams outside the lucrative Premier League are facing an unprecedented period of financial uncertainty.

All Championship, League One and League Two matches will not resume until April 30 at the earliest, and even that date looks optimistic given the chaos caused by Covid-19.

The virus has infected nearly 4,000 people and killed 177 in the United Kingdom as of yesterday.

A grim reality is pervading boardrooms around the country, with some teams fearing that they could be forced out of business if football does not return until after the summer.

Aware of the growing panic, the English Football League has agreed a £50 million (S$84.3 million) relief package, based on an early payment of bonuses, television money and an interest-free loan, to assist financially stricken clubs.

But reports this week claimed that will be enough to tide clubs over for only the next four weeks.

Chief executive officer of fourth-tier Cambridge United, Ian Mather, believes the rescue package may be too small, with the nightmare prospect of having to lay off staff members.

"These are unprecedented times for all of us in so many different ways," he said. "One of the most concerning features of the situation for everyone is that there is no clarity as to when it will end.

"The amount we can access is relatively small and it is far from a complete answer to our financial problem. We are looking at reducing our cost base and this includes making some extremely difficult decisions when it comes to our staff."

Without match-day revenue, it is likely that some lower-tier clubs will ask their players to accept salary cuts if the season does not resume. Scottish Premiership outfit Hearts have already told their players and staff to take a 50 per cent wage cut in a bid to stay afloat.

There could, however, be aid on the horizon if TV broadcaster Sky Sports is willing to release some of the £119 million it is due to pay the Football League next term.

Estimated minimum bailout (S$25.3 million) needed by the National League.

But that remains uncertain and, for now, fear is the overriding mood across the English game.

Steve Thompson, managing director of Dagenham, feels the National League, which is the non-league competition, will need a bailout of £15 million to £20 million from the UK government to survive, if not "integral parts of their community" may be lost.

The same fearful sentiments are sweeping across Super Rugby. It has confronted numerous problems during its 25 years, but experts have warned the pandemic could prove to be a knockout blow for the Southern Hemisphere's premier club competition.

Even before Covid-19 struck, it has long been criticised for being unwieldy and expensive to run.

While the season will stay alive in Australia with a domestic format from next month, matches will be held in empty stadiums, Rugby Australia confirmed on Friday.

The competition is also likely to be missing the usual New Zealand and South Africa teams - with both planning their own domestic competition - due to travel restrictions at least until the finals series.

Andy Marinos, who is the chief executive of the game's governing body, Sanzaar, told TV programme Newshub: "Without the ability to be playing in front of stadiums that have crowds, it all does have a direct impact on the bottom line."

AGENCE FRANCE-PRESSE, REUTERS