Reports | English Football League need atleast £225 million to prevent financial crash
Reports have indicated that the English Football League (EFL) would need about £225 million to prevent the clubs within the league from crashing over a cliff’s edge. The COVID-19 pandemic has forced serious financial issues across Europe but none more so than on the clubs below the English top tier.
While the UK government has confirmed that football can resume safely in June, financial issues across the English football pyramid has seen many concerned for clubs below the top tier. The issues have plagued the National League and the football leagues below that with the League One, League Two and Championship also in deep financial issues. It has seen the government ask the Premier League to help out with a lump sum payment, but no such move has occurred as of yet.
However, the Athletic has reported that, after speaking to an anonymous owner in the EFL, the clubs in the English Football League would need around £225 million to prevent a crash. The report further added that it’s a total figure for clubs in the Championship, League One and League Two with them reportedly heading for a financial crash. The owner also reportedly said that there is a situation arising that could cause serious issues and the Premier League have a chance to change that.
“The new season officially begins on July 1 and that’s going to be a cliff edge for many clubs, particularly those in League One and League Two who have very little income coming in from television rights. We will get this season finished or decided but can you see a situation arising next year when the government allows large numbers of people into a stadium? That’s what’s going to cripple the EFL next year,” he said.
“The Premier League might cry a little bit because clubs will lose their gate receipts but you’re only asking them to save the pyramid for less than what they’re scheduled to pay agents. And because of the broadcast contracts they have, it would be very, very easy for them to borrow money and to get their house in order so that in two or three years’ time players wages are 10-15 per cent less than they are now. The Premier League needs to be the architect of it, the foundation of it. But every other club has to take some responsibility for its own lifeline, too.”