papawhisky wrote: ↑Wed Aug 05, 2020 8:56 pm
I could be wrong but as I understand it the furlough scheme is active until October, providing that employers registered employees in it before June/July. Obviously the majority of football clubs, particularly below PL level, would have done so. Basic financial security.
Therefore it is ENTIRELY impossible to judge the outcome of the virus on football clubs at any level at the moment. Anyone trying to do so in an attempt to win a mindless and pathetic argument would be...well... mindless and pathetic. As Terry says, give it a few months.
I thought the furlough scheme had ended now, but you may well be right as I'm retired now and don't take as much interest in things like that now I no longer have to.
But anyone who thinks coronavirus isn't affecting the financial workings of football clubs clearly hasn't got the full complement of operational brain cells. Arsenal are one of the wealthiest clubs in England and have just announced 55 redundancies. This is on top of players and senior executives already having agreed reductions of 12.5% in salaries. Spurs have already received a type of "bridging loan" underwritten by the Bank of England, and they are another club which has been very well run since the present ownership took over.
Coronavirus will have, in fact is already having, a significant effect on football clubs. Premier league clubs derive much of their income from broadcasting revenues and so are, to a large extent, shielded from the worst cash shortfalls. Although apparently Arsenal reckon the present situation has cost the £24 million in lost match day revenues. Add to that whatever figure they lost as a result of the rebate paid to broadcasters and you'll get some idea of the financial impact.
Imo a number of clubs lower down the pyramid, much more reliant on match day revenues, will end up being run as part time or amateur operations unless some way of funding their match day operations, such as live streaming, can be found. No business can survive with pretty much zero cash flow which is what League One and Two clubs are facing at the moment.
