Premier League ‘offering grant of less than £50m’ to bailout struggling lower league clubs… despite EFL claiming they need £250m to cover losses caused by the coronavirus pandemic
- Premier League reportedly prepared to offer £50m to EFL to assist financially
- Offer comes with another £100m provided as a loan with bank interests rates
- However, the EFL claims lower league clubs need £250m in total to cover losses
The Premier League are reportedly only prepared to offer struggling lower league clubs £50m to help them with the fallout of the coronavirus pandemic – just one fifth of what the EFL claims they need.
Clubs below the Premier League have been left teetering following the financial damage caused by football’s shutdown from back in March.
It left League One and Two unable to fully complete their campaigns, while along with Championship sides left them without crucial revenue in the form of matchday income provided by supporters inside the stadiums.
The Premier League are reportedly only offering a grant of less than £50m to struggling EFL clubs. Above, Manchester United and Tottenham compete in the top flight on Sunday
According to The Times, the EFL says it needs up to £250m to cover the losses since lockdown with the £50m offer from the Premier League also in conjunction with another sum of about £100m as a loan with interest rates similar to those charged by banks.
The report also claimed that an agreement between the Premier League and the EFL looks a long way off.
The urgency of the bailout is being particularly felt among third and fourth-tier teams who fear being able to pay wages beyond October, with Premier League chairmen having postponed a meeting to discuss the situation from today until next week.
Premier League have shown a growing resistance to helping out Championship sides. Above Brentford face off against Preston North End in the second tier
Executives at Premier League clubs have shown growing annoyance over the situation. Many privately believe that funds should not be handed over until top-flight players agree to take pay cuts.
One source explained: ‘Lots of money goes into the Premier League, which is well reported, but lots of money goes out of it — most of it to players.
‘It’s not like clubs have vast reserves of cash sitting around. Nobody at the clubs is making a killing outside of the football staff.
‘So if the salaries remain the same, where does the EFL think this money is going to come from? It’s not like the owners are pulling vast amounts out to buy themselves yachts and mansions.’
Sportsmail understands that talks between the Premier League and EFL focused primarily on the top flight providing a bailout for clubs in League One and League Two amid a growing resistance to helping out the Championship.
Many clubs such as Plymouth Argyle, pictured in action against Hull in League One, lost revenue last term having been unable to complete their domestic campaign
These would provide a series of short-term loans to cover lost gate receipts in the bottom two divisions that could total £60m by the end of the season.
Premier League club bosses are resisting the demand for £250m because Championship owners are worth more than £32billion combined with the consortium in charge of Barnsley worth an estimated £7bn and the Coates family who run Stoke and Bet365 worth £6.9bn.
The amount required from the EFL would only be a fraction of the cumulative worth of the Championship owners, 0.77 per cent to be precise.
There is more sympathy from Premier League clubs for teams in League One and League Two who do not have anywhere near that level of backing.
There is a very real possibility a number of them could go out of business, particularly with no immediate prospect of fans coming back into stadiums.
The EFL do not expect the Premier League to provide all the funding they need to get through the season without gate receipts.
Non-League teams are up and running again, with National League resuming at the weekend
As a result, they will be lobbying the government for the extension of tax holidays and holding talks with private equity firms about a loan to distribute to the clubs.
Meanwhile, non-League clubs have been handed a £20m taxpayer funded bailout by the government to help deal with the fallout of the pandemic.
Ministers have decided to hand clubs in the National League, the National League North and the National League South a total of up to £3m a month so they can start their season this weekend.
Many of the 67 clubs faced financial ruin without the matchday revenue they rely on after the Government announced earlier in September that fans would not be allowed into stadiums from October 1 as had been planned.