Covid-19 impact on the 91

007Dale

Youth Team Starter
Joined
Dec 7, 2019
Messages
277
Team{s}
Leicester City, St Albans City
A season that has seen the football league lose Bury, could see an acceleration of collapses, and at the top-end.

It’s already looking bleak for Tottenham, with the crisis coming at the worse possible time for them. Unable to utilise their hugely expensive stadium and debts to service, the club have already reduced the salaries of non-playing staff.

Worse still, they may be unable to realise the values of their star players with the Virus likely to significantly impact the transfer budgets of Europe’s leading sides.

futhermore, a return to the Champions League looks unlikely for next season, even if a Normal season occurs for 20/21.
 

Chris1963

Youth Team Starter
Joined
Mar 10, 2020
Messages
285
Team{s}
Oxford United / groundhopper
I don't think Spurs are likely to fold - they are just too big a club. I'm more worried about the lower-division and non-league clubs, as I'm sure we all are.
 

007Dale

Youth Team Starter
Joined
Dec 7, 2019
Messages
277
Team{s}
Leicester City, St Albans City
I agree it’s doubtful Tottenham would go into liquidation, but Administration is a possibility.
One report today suggests that things are potentially very bleak for them;
- if the PL can’t finish the season and they lose a portion of the TV money
-and if they can’t run any non-football events at the stadium this year
- and If they fail to make the Group stage of a European competition
They are potentially looking at having to sell and lease-back the new stadium. Ouch.
 

Tykeoldboy

Youth Team Hopeful
Joined
Dec 7, 2019
Messages
196
Team{s}
Doncaster Rovers
Everton
There are other PL teams in the same bed. Liverpool recently expanded Anfield, a debt that needs to be serviced, although that should be manageable. Man Utd are neck high in debt.
 

Kirby Knitters

Reserve Team Star
Joined
Dec 7, 2019
Messages
1,319
Team{s}
The Knitters.
There are other PL teams in the same bed. Liverpool recently expanded Anfield, a debt that needs to be serviced, although that should be manageable. Man Utd are neck high in debt.
£391m at the last count. 😂
 

paulh66

Reserve Team Star
Joined
Dec 7, 2019
Messages
1,162
Team{s}
Tranmere, South Liverpool
Don't forget that lenders and other finance providers are just as exposed to the current climate as borrowers. Everyone's in this together. Yes, some may struggle to service loans but the value of the secured assets will also likely drop heavily. So, if it gets to the crunch, compromises will more than likely be renegotiated, particularly for well-run clubs. It'd be in the best interests of all parties to do so. Same with TV contracts etc.

Football will still be popular and lucrative after the crisis, TV companies etc will all still want a part of it and finance houses will still exist to provide finance.

Some clubs already struggling may well go to the wall but, generally, I expect we're more likely to see a recalibration of income, expenditure, assets and liabilities across the board, for all parties.
 
Last edited:

jrev61

Junior Team Regular
Joined
Dec 9, 2019
Messages
84
Team{s}
None
Don't forget that lenders and other finance providers are just as exposed to the current climate as borrowers. Everyone's in this together. Yes, some may struggle to service loans but the value of the secured assets will also likely drop heavily. So, if it gets to the crunch, compromises will more than likely be renegotiated, particularly for well-run clubs. It'd be in the best interests of all parties to do so. Same with TV contracts etc.

Football will still be popular and lucrative after the crisis, TV companies etc will all still want a part of it and finance houses will still exist to provide finance.

Some clubs already struggling may well go to the wall but, generally, I expect we're more likely to see a recalibration of income, expenditure, assets and liabilities across the board, for all parties.
The question of TV money is an interesting one. If the Premier is declared null and void, there is a possibility that Sky and BT Sport will not pay up in full for the matches they have televised. if the Premier League is not concluded until October then I'm guessing that clubs won't see any money until then, which will cause massive problems and may see the release of highly paid players whose contracts have expired.
I don't know if it's a possibility or not, but what if Sky Sports and/or BT Sports did what ITV Sport did. Going bust with no bail-out from the 'parent' company. This would ruin most Premier League clubs.
 

Lord Lucan

Youth Team Sub
Joined
Dec 9, 2019
Messages
252
I have no knowledge of the specifics of PL/EFL contracts with Sky & BT Sport, but if the season is voided and records expunged there will be no final league table and TV payments based on finishing position would, presumably, have nothing to be calculated against.

I am sure the PL/EFL and individual clubs will have qualified legal professionals to advise them of the legal implications of any decision prior to one being made.
 

leohoenig

Forum Admin
Staff member
Joined
Dec 7, 2019
Messages
613
Team{s}
Cheltenham Town
In the daily mail story on beIN's decision not to pay fo Ligue-1 rights in France while the league is suspended, it says that the Premier League could be asked to repay £762 million to rights holders if the season is not completed by July 16th. It suggests the Premier League is looking to play games behnd closed doors between the start of May and to finish on July 12.
 

Climate Change

Youth Team Star
Joined
Dec 8, 2019
Messages
372
. It suggests the Premier League is looking to play games behnd closed doors between the start of May and to finish on July 12.
In their dreams.............
 

Tykeoldboy

Youth Team Hopeful
Joined
Dec 7, 2019
Messages
196
Team{s}
Doncaster Rovers
Everton
With worldwide tv contracts the EPL do stand to lose a lot of money. The EFL also have tv contracts all over the world, not as many as the EPL, even so the loss of money from those contracts would have an even bigger inpact on EFL clubs, many who are already standing on the edge of the financial cliff.
 

paulh66

Reserve Team Star
Joined
Dec 7, 2019
Messages
1,162
Team{s}
Tranmere, South Liverpool
TV companies also stand to lose a fortune through suspended/lost subscriptions. Football needs TV but TV needs football too. Both will probably need to compromise at some point.
 

Groundhopper 101

Junior Team Sub
Joined
Dec 10, 2019
Messages
25
Team{s}
AFC Totton

Tykeoldboy

Youth Team Hopeful
Joined
Dec 7, 2019
Messages
196
Team{s}
Doncaster Rovers
Everton
Semi finals should be made 1 leg to get them completed quicker.
If they are playd behind closed doors then there is no financial loss from gate receipts so 1 leg SF makes sense. It depends on what Sky agree to.
 

paulh66

Reserve Team Star
Joined
Dec 7, 2019
Messages
1,162
Team{s}
Tranmere, South Liverpool
A sobering if not stark analysis from Tranmere owner/ex FA CEO/finance expert Mark Palios, a man who doesn't do hyperbole, writing in today's Telegraph:

"The most important week in the history of the Football League - act now, or risk carnage

When judged within the context of the worldwide pandemic, English football's troubles rightly appear an unseemly sideshow. But there is an increasing danger that history's judgement won't be kind on the collective leadership's inability to get close to finding a solution to the existential threat to the game as we know it.

There have been accusations that, since the creation of the Premier League, football operates in a universe far removed from the real world. In the month since all football was brought to an abrupt halt in England, added to those accusations has been the suggestion of a moral vacuum at the heart of the game. Overlaid on this sad landscape is a leadership vacuum which has resulted in the failure to agree any coherent response to the coronavirus crisis and negotiations plagued by a lack of trust.

This week is absolutely critical for the EFL and the survival of many of the 71 clubs that it represents. In League One and League Two, cash will be an even more scarce commodity come the April wages run. Data gathered by the EFL shows that certain clubs will be unable to pay the salaries of players unless cash is found from somewhere.

The proposal from the EFL and PFA that 25 per cent of players’ wages for April may be deferred is helpful, but it currently remains every man for himself and far more collective progress needs to be made.

Ultimately, the only way out of this mess is to take the opportunity to fundamentally restructure the flawed financial model on which football has been based since the establishment of the Premier League.

We have to address the unregulated wages market, which means the mega-salaries paid at the very top of the game have a huge inflationary impact all the way through the professional pyramid.

We have to address the massive, distorting effect of the parachute payments from the Premier League, which lead to desperate attempts by clubs to make it to the "promised land" in an often reckless gamble and a player-wage arms race.

We have to address the inequity of the Elite Player Performance Plan (EPPP) that starves lower league clubs of the revenues that they used to earn by nurturing young talent.

The EFL has been looking at these issues and those deliberations need to be accelerated and thrown into the pot as the necessary reshaping of the game is more urgent than ever.

In the short term, it appears many clubs need players to take wage deferrals or cuts of around 50 per cent over the period to June in order to survive and avoid the prospect of having to sack staff once furloughing ends. Both scenarios may seem dramatic and, to some, unpalatable, but they are the reality.

The luckier EFL clubs have, in normal times, had wage bills paid by their owners if the clubs themselves have had insufficient funds to meet the demands, but this is no longer a reliable source of funding. Many owners are themselves businesspeople and their own businesses will be hurting badly. Furthermore, with no light yet at the end of the tunnel, owners who could afford to supplement the wages in the short term are unlikely to do so if they cannot see a viable medium or long term for their clubs. There is little point in throwing good money after bad, and the Covid crisis could well be the catalyst for owners to decide enough is enough.

The crisis facing us should not be underestimated. When Bury FC collapsed, its community was devastated and there were lots of platitudes about ensuring that it never happened again. But it is about to happen again and many times over, unless we change the way we are handling this, and change it urgently.

Central to the current paralysis have been the complexities of the stakeholder agendas, exacerbated by a vacuum of leadership by the key footballing bodies. Now is not the time for an adversarial approach, for settling old scores or handling discussions in a 1970s-style trade union negotiation. But that is what we are witnessing and if we can’t stop it many clubs which are cherished in their communities may disappear forever. Even the relatively uncontentious furloughing of players in lower league clubs became an unnecessary source of conflict and wasted two weeks of energy. Clubs need clubs to play against and players need clubs to play for. That is why the only approach that will work is one which safeguards the future of the pyramid for all.

Wage deferrals, advances of future television money and loans may solve the short term problem for some and give time to work out the thornier problems of over a thousand players coming out of contract in a couple of months or what to do with the 19/20 season.

But there is no point in solving the short term crisis, only to almost guarantee a financial disaster in the months and years to come. Within the EFL there are 71 clubs ranging from former Premier League giants, to clubs who struggle to attract gates of more than 2,000. Their financial situations are vastly different. No one-size solution will fit all clubs and we are already witnessing some clubs, particularly in the Championship, breaking ranks and cutting their own deals with players. So even if the EFL board were to work up a solution that would secure the future of its member clubs, it is by no means assured that they could persuade all of them to sign up to it.

Most players defer to the PFA and so the union should find it easier to reach a collective approach with members. However, the fact remains that each player still has an individual contract.

Unfortunately, I have not yet seen a serious attempt to model scenarios that work, addressing concerns. Players coming out of contract will rightly have greater concerns about deferring wages. Those finances, in my view, could be underwritten by the PFA’s benevolent fund, stepping in to help players who don’t get a contract on August 1 and repaying the deferral then. Or it at least should be explored.

But, deferrals cannot be the long-term solution. Despite the government support through the furlough scheme, every club is building up additional debt, and deferrals just add to this. The advancement of future TV monies means that future revenue streams will be lower and yet clubs will have a mountain of debt to service. This is not viable for those who were struggling to make ends meet before any of this happened.

In a week when the Covid death toll hit 10,000, it will sound trivial and melodramatic but this is perhaps the most important seven days in the history of the EFL. If it hasn’t got a plan — or at least the bones of one — in place by the end of this week, clubs will default on players wages in April, more in May and so will set in train a chain of events which will potentially lead to carnage, for clubs players, owners and fans alike. It could also lead to the unwelcome fragmentation of the pyramid.

A solution can be reached but only if the PFA, the EPL, the EFL, the LMA and The FA move from negotiation into cooperation."
 
Last edited:

Bigaitch

Junior Team Star
Joined
Dec 7, 2019
Messages
129
Team{s}
None in particular
A very interesting and thought provoking piece from a man with vast credibility.
However, as he states, this week the covid death toll hit 10,000...that scares me a lot more than the future of the game. I guess my thoughts won’t be popular but it is how I feel.
 

Lord Lucan

Youth Team Sub
Joined
Dec 9, 2019
Messages
252
Mark Palios, a man who doesn't do hyperbole
Really ? Someone whose first sentence includes "risk carnage" doesn't seem to fit that description.

I know people prone to hyperbole use it to try and get others to click/read on, but it tends to have the opposite effect on me.
 

paulh66

Reserve Team Star
Joined
Dec 7, 2019
Messages
1,162
Team{s}
Tranmere, South Liverpool
Really ? Someone whose first sentence includes "risk carnage" doesn't seem to fit that description.

I know people prone to hyperbole use it to try and get others to click/read on, but it tends to have the opposite effect on me.
Most people understand how the word carnage has evolved in every day language, including in journalism, from its original meaning.
Still, an interesting little insight into what does and doesn't draw people's attention to facts.
 

Climate Change

Youth Team Star
Joined
Dec 8, 2019
Messages
372
A very interesting and thought provoking piece from a man with vast credibility.
However, as he states, this week the covid death toll hit 10,000...that scares me a lot more than the future of the game. I guess my thoughts won’t be popular but it is how I feel.
Football has always been a weird 'business'. As far as I am concerned football has made it's bed and any Govt grants/money available should go anywhere other than to their flawed projects.
 

Latest posts

Top
AdBlock Detected

Polite request!

NLM relies on advertising to pay the bills to stay online . Could I ask that you disable your AdBlocker for this site. Alternatively if you are a registered user you can remove all ads and get other benefits for as little as £1.50 a month. Just go to your Profile and click on Account Upgrades. Most visitors will see this message only once per visit...... Thanks

I've Disabled AdBlock    No Thanks