Clubs going bankrupt?

[adamtherover]

Big piece on SSN about L1 and L2 clubs being in severe financial hardship,  with many not being able to trade after june?
 
Obvious question, but surely putting every member of the entire club on furlough stops this ?

Or are chairmen prepared to put their clubs future at risk instead of treating the players the same as the backroom staff?

They highlighted a back room staff member who volunteered to be furloughed to help the club, then at the same time, a player was approached about doing a deal regarding wages who flatly refused even tho they were on 10 times the salary of the backroom staff? 
Somethings got to give..

[drfchound]

Adam, there is an interesting article by Mark Palios (Tranmere) on the bbc website.

[adamtherover]

Cheers, I'll have a read...

[drfchound]

DRFC have put DM and some other senior staff on the furlough scheme now.
Only GB and a few staff who are essential to the running of the club are now still fully employed.

[Donnyjim]

Worrying times. I’m praying we still have a club at the end of this. There will be a few that disappear. I just hope we are not one. 🙏

[redarmy82]

Depends how long it goes on.

If there's a situation, which is very likely, Where's there's no games played in front of supporters for the next 12 months, I dare say most clubs, including us, will not survive.

[DN8ROVER]

Depends how long it goes on.

If there's a situation, which is very likely, Where's there's no games played in front of supporters for the next 12 months, I dare say most clubs, including us, will not survive.

I'm not expecting to attend any sporting event or gig this year. Hope i'm wrong put people come first.

[since-1969]

It’s on hold as is life for us all . DRFC was a viable club before and it will be afterwards. EFL has to decide to delay restart of season or a abandon last one . In the whole scheme of things it’s going to be difficult but not a impossible task only very hard complete.

The Government has given as much support to everyone by given loans and grants . The boards income which intern supports the club must surly be effected and its fair to assume that it could reduce the budget going forward . The time could be right for others to take over or new opportunities for investment .

Darren Moore has been fur-lowed as clearly the club needs to keep its cash flow in check .  Talk of playing behind closed doors will ultimately bring clubs to the courts . It’s about the fans and if we can’t watch then NO game should be played . Let’s face it there could be empty seats where living fans once sat and it wouldn’t be fair not remember why that seat is vacant.

[dknward2]

As there is nothing for Darren Moore or the rest of the backroom staff and they can't work due to the virus then add no money coming into the club no reason they shouldn't be.

Think we are in a better place than other most other clubs

[hamiltonrover]

Similar thoughts to others, I think we will be in a better position than the vast majority of league 1 & 2 teams at the end of this.
The wealth of our owners is not dependent (I don’t think) on an external business that has been impacted which creates additional pressure.

Clubs with huge wage bills like Sunderland must be in a pretty worried state, especially having watched the documentary.

I am not sure how much influence, finance and power the EFL and others have in trying to keep clubs afloat.


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[Dagenham Rover]

Well I'm sure the EFL won't let some clubs go under...... or am I just being cynical

[big fat yorkshire pudding]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

[BillyStubbsTears]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

The advice I was given by our company secretary is that no employee can be furloughed unless they agree.

[NewDonny]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

The advice I was given by our company secretary is that no employee can be furloughed unless they agree.

Correct, the employee has to sign a furlough contract agreeing to be furloughed and fo the term stated in the contract. The employee then pays the salary and reclaims the furlough portion back from the government. At the time of being furloughed an employee cannot work for his employer or any other employer.

[roverstillidie91]

It’s on hold as is life for us all . DRFC was a viable club before and it will be afterwards. EFL has to decide to delay restart of season or a abandon last one . In the whole scheme of things it’s going to be difficult but not a impossible task only very hard complete.

The Government has given as much support to everyone by given loans and grants . The boards income which intern supports the club must surly be effected and its fair to assume that it could reduce the budget going forward . The time could be right for others to take over or new opportunities for investment .

Darren Moore has been fur-lowed as clearly the club needs to keep its cash flow in check .  Talk of playing behind closed doors will ultimately bring clubs to the courts . It’s about the fans and if we can’t watch then NO game should be played . Let’s face it there could be empty seats where living fans once sat and it wouldn’t be fair not remember why that seat is vacant.

It simply isn't going to happen in response to your comments about games being closed behind closed doors. The health of the nation is what matters not a sport and numerous factors come into it including whether fans actually want to go or decide to stay at home whilst this virus is floating about.

We will just have to get over it and what ever will be will be. And you also have to take into account the players, officals, match day workers etc.

It will have to be a give and take situation.

[Dagenham Rover]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

The advice I was given by our company secretary is that no employee can be furloughed unless they agree.

Correct, the employee has to sign a furlough contract agreeing to be furloughed and fo the term stated in the contract. The employee then pays the salary and reclaims the furlough portion back from the government. At the time of being furloughed an employee cannot work for his employer or any other employer.

He/she can work for another employer with his  employers who furloughed thems  permission but cannot do any work for his p employer that hes furloughed from

[big fat yorkshire pudding]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

The advice I was given by our company secretary is that no employee can be furloughed unless they agree.

Correct, the employee has to sign a furlough contract agreeing to be furloughed and fo the term stated in the contract. The employee then pays the salary and reclaims the furlough portion back from the government. At the time of being furloughed an employee cannot work for his employer or any other employer.

Exactly, a footballer will be the same. Some contracts do allow for temp lay offs etc but most dont.

[drfchound]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

I would be very surprised if any footballers contracts included a clause about being furloughed.
It is something that most people would never have considered before it came into the news a few weeks ago.

Hindsight eh.

[Donnyjim]

I heard an expert on the radio saying that the championship clubs were in bigger danger because many of them are running at a loss already and they have massive wage bills. Sunderland are in this category. Without a very rich owner to sign the cheque at the end a lot of teams could be doomed.

[adamtherover]

With sky postponing all sports subscription payments, how long till they stop their payments to the EPL, not sure If its one payment a year or periodically?  That really would bugger a lot of clubs up...

[selby]

On Talksport it was stated that the  players wages of every club in that division was equal to 106% of every clubs total income.
  Some (very few) may be within their total income, so some will be flying high into trouble quickly unless the owners are willing to stump up a lot of money. I can't see the banks being very helpful at the moment. If nothing is resolved within the next month I expect the dominoes to start to fall.

[adamtherover]

Rumours doing the rounds is that we might be lucky to see crowds in stadiums in 2020?  Clubs will be folding by the dozen.... 😪

[Campsall rover]

On Talksport it was stated that the  players wages of every club in that division was equal to 106% of every clubs total income.
  Some (very few) may be within their total income, so some will be flying high into trouble quickly unless the owners are willing to stump up a lot of money. I can't see the banks being very helpful at the moment. If nothing is resolved within the next month I expect the dominoes to start to fall.

Well if nothing else this should be a wake up call for Football.

The bubble was going to burst eventually. This is going to be one massive crash. Hopefully some long term sense will return to the game.
Let’s hope we still have at least 70 of the 91 clubs left when normality resumes.

[silent majority]

With sky postponing all sports subscription payments, how long till they stop their payments to the EPL, not sure If its one payment a year or periodically?  That really would bugger a lot of clubs up...

They get paid in advance, so for season 2019/20 they've already had it. That's why I keep saying they need to finish the season, otherwise Sky will want it's money back, and currently that figures stands at £758m. The new Sky TV deal kicks in on 31st July I think, so getting things in order by then will be paramount.

The clubs hardest hit in all of this will be the Championship clubs, those that are gambling to get into the EPL. Expect to see Brentford, for example, start to scream shortly.

[NewDonny]

I'm not an expert but theres every chance a footballers contract means they cannot be furloughed unless they agree?

The advice I was given by our company secretary is that no employee can be furloughed unless they agree.

Correct, the employee has to sign a furlough contract agreeing to be furloughed and fo the term stated in the contract. The employee then pays the salary and reclaims the furlough portion back from the government. At the time of being furloughed an employee cannot work for his employer or any other employer.

He/she can work for another employer with his  employers who furloughed thems  permission but cannot do any work for his p employer that hes furloughed from

Thats not entirely correct. Yes a person can take another job when furloughed by their employer, but only with their employers agreement and outside of the hours that they would normally work for their employer. So if they worked 9am -5pm Monday to Friday and were furloughed, they could take another job with another employer and work outside of those hours, for example - they could take a job stacking the shelves at Tescos working from 5pm through the night.

[The Red Baron]

Martin- although I think finishing the 2019-20 season is highly desirable, for the reasons you point out, I just don't see how it can be achieved. The "Behind Closed Doors" business is the least of the obstacles. For example, how can you maintain the safety of players and club staff?

[Draytonian III]

Your first word is right, rumour, there’s nothing else to talk about, print , post , let’s start a rumour because all the journalists know everything , parasites

[albie]

I agree with TRB above.

There is a further complication.
The new Sky deal is surely not going to go ahead without any certainty the product will be provided, at the schedule set by the season.

Sky will look to re-negotiate the contract accordingly. The trouble is some clubs have committed to spending that money before they have received it.

If this season cannot be completed, breach of contract and partial repayment to Sky is a possibility.
Look at the Championship wages to turnover chart I posted. Either owners with deep pockets will have the money to ride it out....or not!

The financial model of the football industry is broken.

[rich1471]

Cut-out and keep supporting your team...
15 Apr 202015 Apr 2020From the sectionEuropean Football
Borussia Monchengladbach fans will be able to show their support if the Bundesliga resumes behind closed doors - with cut-outs of themselves in the stadium. £17 each a great way to get in revenue if games are played behind closed doors , cannot post a link but from bbc

[silent majority]

Martin- although I think finishing the 2019-20 season is highly desirable, for the reasons you point out, I just don't see how it can be achieved. The "Behind Closed Doors" business is the least of the obstacles. For example, how can you maintain the safety of players and club staff?

TRB, I don't doubt it will be difficult, but the EPL and EFL have every intention of finishing the season. I hear what you say, but the briefings we've had all point to them finishing this season, and money of course drives that. The Bundesliga will be the 1st major league to open up again, and lessons will be learnt from that, therefore, hopefully, we can complete.

There are some details that the authorities have shared with us that are not yet in the public domain, and if I could I would tell you. However, they have a plan, and several variations on that plan as well.

The big test is keeping all the various clubs on side. The EPL speaks with one voice pretty much, only 3 clubs want things done differently, but the EFL is a completely different ball game. Trusting them to get things over the line is a massive challenge.