Home
Clubs in League One currently stand to lose at least £250,000 in matchday revenue during the current lockdown, according to football finance experts UCFB.
According to research from the University Campus of Football Business, the relief package offered by the EFL to Wanderers and other third-tier clubs is likely to be outweighed by the end of this month.
Exact figures for Bolton are unavailable, as accounts have not been filed for the last couple of years, but the club has already taken preliminary steps to reduce losses by placing the majority of non-footballing staff on furlough and introducing mandatory pay cuts for senior management.
An interest-free loan of up to £183,000 is also available to League One clubs but Wanderers have declined to comment on whether they will be making use of the EFL’s offer.
The current review date of April 30 is expected to be discussed by the Premier League and EFL this week – and many expect it to be extended into May.
Chris Winn, the co-author of the Deloitte Annual Review of Football Finance, estimates the average outgoings for League One clubs during the lockdown will be around £1.3million.
He said: “The relief package from the EFL, though gratefully received by each club and much needed, is only going to last so long. If clubs’ outgoings continue to be the same and the suspension extends into May or games are played on a behind-closed-doors basis, then wider gaps in funding may develop.
"What this does highlight is the importance of continuing owner contributions in EFL clubs to the extent permitted, alongside the timing of broadcast and commercial cash inflows and the government wage support being made available to all businesses that require it.
“These figures however assume that other forms of income, including broadcast and other commercial streams, are not impacted over coming weeks. If the suspension of the season continues into late May or even June, will broadcasters or sponsors suspend or withhold payment and if so, how long can owners realistically and feasibly continue to contribute?”
He added: “At what is a critical period for all businesses big and small, the measures provided by both the EFL and wider government will hopefully mean that by the time football returns, all our clubs are still operational.
“However, with EFL clubs historically being loss-making, and there being little sign of that changing, the present crisis may provide further evidence that this status quo, including the associated business models and revenue distribution mechanisms, needs to be addressed once business, and football, returns to normality.”
Source
According to research from the University Campus of Football Business, the relief package offered by the EFL to Wanderers and other third-tier clubs is likely to be outweighed by the end of this month.
Exact figures for Bolton are unavailable, as accounts have not been filed for the last couple of years, but the club has already taken preliminary steps to reduce losses by placing the majority of non-footballing staff on furlough and introducing mandatory pay cuts for senior management.
An interest-free loan of up to £183,000 is also available to League One clubs but Wanderers have declined to comment on whether they will be making use of the EFL’s offer.
The current review date of April 30 is expected to be discussed by the Premier League and EFL this week – and many expect it to be extended into May.
Chris Winn, the co-author of the Deloitte Annual Review of Football Finance, estimates the average outgoings for League One clubs during the lockdown will be around £1.3million.
He said: “The relief package from the EFL, though gratefully received by each club and much needed, is only going to last so long. If clubs’ outgoings continue to be the same and the suspension extends into May or games are played on a behind-closed-doors basis, then wider gaps in funding may develop.
"What this does highlight is the importance of continuing owner contributions in EFL clubs to the extent permitted, alongside the timing of broadcast and commercial cash inflows and the government wage support being made available to all businesses that require it.
“These figures however assume that other forms of income, including broadcast and other commercial streams, are not impacted over coming weeks. If the suspension of the season continues into late May or even June, will broadcasters or sponsors suspend or withhold payment and if so, how long can owners realistically and feasibly continue to contribute?”
He added: “At what is a critical period for all businesses big and small, the measures provided by both the EFL and wider government will hopefully mean that by the time football returns, all our clubs are still operational.
“However, with EFL clubs historically being loss-making, and there being little sign of that changing, the present crisis may provide further evidence that this status quo, including the associated business models and revenue distribution mechanisms, needs to be addressed once business, and football, returns to normality.”
Source