The English Football League look set to miss out on a lucrative bailout, as reported by Matt Slater at The Athletic.
The EFL rejected a proposal earlier in the month from the Premier League and it looks like any potential financial rescue will no longer be happening.
Bailout for EFL Clubs Looking Unlikely
Agreement Not in the Best Interest of Entire Football League
Last month the chairman of the EFL, Rick Parry, wrote a letter to the government suggesting that many clubs in the Football League feel “ignored” and “victimised” in comparison with other sectors.
The Premier League had reportedly offered clubs of Leagues One and Two a rescue package of £50 million, with £20 million in grants and £30 million in interest-free loans.
However, the EFL refused the offer, despite Parry calling for further backing from the government, because it didn’t include Championship clubs. It was also rejected because clubs from League One and Two wanted the entire fund to be offered solely as a grant, rather than loans, resulting in further debt for already struggling sides.
Despite the initial rejection, the EFL made a drastic U-turn and accepted the offer for clubs in the third and fourth-tiers. It was agreed that Championship clubs would apply for funds on a case by case basis.
Lower league clubs have felt the financial force of the coronavirus pandemic more than most, with gate receipts being a major financial gain during the season. However, with games being played behind closed doors since the new season began, the losses have become even more strenuous.
Unlikely Bailout for EFL
Now though, any potential bailout looks unlikely. This comes despite the news last week from Culture Secretary Oliver Dowden saying a £250 million package “would be a good place to get to”.
“Ultimately it will be a decision between the EFL and the Premier League,” he said. “Of course we are engaging closely with them.
“We are also doing our bit as the government, but also working with HM Revenue and Customs for clubs in trouble to make sure they are not pushing them further into trouble.”
It is reported that the rescue package will exclude clubs from the EFL. As a result, the Premier League are becoming increasingly annoyed about having to bailout the lower league clubs when the government have refused to help themselves.
However, with the imminent return of fans back lower league clubs’ finances should increase through gate receipts. Although capacity is limited, the lower leagues will continue to fight for a financial bailout from the top-flight.
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