An interesting response to the National League Funding Options have been posted by Chelmsford FC last night.
In particular the following paragraph which says - Is it right for the National League to take a further £11m out of the Government coffers which could be more prudently spent on increased immunisation programmes or to our nurses and doctors who are providing such amazing care at this time.
Chelmsford FC Club Statement – Covid-19 Update
As everyone will have seen,
the National League hosted a call with all clubs in the League yesterday
and presented three options for consideration regarding if, or how the
season should continue from a financial perspective. The options we were
presented with and have been asked to comment upon are as follows:
1. Loan to individual clubs
2. Loan to the National League to distribute as grants to clubs
3. Suspension of the season
Let us respond to the last one first.
In December we wrote to the National League twice suggesting a suspension of the league during challenging times for the NHS; this was declined.
The club is still of the view that it is morally difficult to justify football continuing whilst the Covid situation remains critical. Having said that, it may be that football provides some comfort to people and gives them an alternative focus, helping their overall wellbeing.
Given that the season did start and almost a third has now been completed with good protocols implemented to help minimise the risk of further spread, we can see the arguments for both continuing and a cessation and in fact have almost daily debates on this matter as a Board.
The terms and length of a ‘suspension’ are unclear and cannot be guaranteed based on recent precedents. So, whilst some may argue it allows time for a rethink by DCMS, the one thing that is very clear is that the commercial implications of a cessation would be catastrophic for the club and its players.
The club is still generating some income through streaming and the excellent efforts of the Supporters Club but has bills to pay and whilst some players could be furloughed, not all would receive monies as they joined post 31st October and furlough still leaves the clubs with some significant costs to pay, so we would have no income and continued costs. In addition, we are only 10 days away from the January payroll with no certainty of funding. Therefore, this is not a commercially acceptable solution and not one the Board is able to support on this basis.
With regard to options 1 and 2, loans versus grants, there has been much talk of promises made at the start of the season that monies would be made available and the announcement of a further £11m being made available to the National League.
The money currently being offered is available either as loans to individual clubs, based on needs, or as a loan to the National League and then the National League providing individual clubs with grants, again based on need. Either way the money has to be repaid; by the clubs themselves out of future income or by the National League through a reduction in central funding usually paid to clubs – both have a similar impact at club level; a reduction in income of around £10k to £20k per club per year depending on the length of the loan that can be agreed.
On the basis of the full terms proposed so far, the cost of repayments would be the equivalent of less than £500 per week per club. Based on a squad of 20 players, that is £25 per week less per player – is that too big an ask?
These are challenging times for everyone and it is felt that football, having been given the opportunity to continue, should be prepared to pay its way and not take further Government funding.
Is it right for the National League to take a further £11m out of the Government coffers which could be more prudently spent on increased immunisation programmes or to our nurses and doctors who are providing such amazing care at this time.
As a Board, if the season is to continue, we have expressed a preference for the National League to take a loan and provide grants to clubs though the offer of individual club loans is equally acceptable if they can be provided in a timely manner.
We hope you, our supporters, back this proposal and as soon as we are aware of the outcome we will again communicate the position.
The decision will be based on feedback from all clubs in the National League and you may have already read on social media the views of some of those – we, like you, await the outcome.
The BoardChelmsford City Football Club