EFL “deeply disappointed” after government loan to championship clubs was suspended

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The English Football League has expressed disappointment with the Treasury Department’s temporary suspension of a loan payment to Sky Bet Championship clubs but is hoping a solution will be found.

The second division teams expected a £ 100m loan to be disbursed through the Bank of England on Friday to end the current season, which remains badly hit by the coronavirus pandemic.

Earlier this week, however, the previously agreed terms of the financial bailout were changed by the government, which insisted on salary restrictions for “relevant people” to include players, not just board members and executives.

This resulted in the EFL writing to championship clubs on Thursday to update the situation and while the delay is not welcome, the £ 100m loan is expected to be paid off, with proactive talks with the Ministry of Finance.

An EFL spokesperson said: “We are extremely disappointed with developments at this late stage in our talks and will continue to negotiate intensively with HM Treasury to find a solution that meets the requirements of championship clubs and is compatible with the parameters of other industries is. “asked to meet.

“There remains a significant amount of debt – including the HMRC – accumulated by championship clubs simply from the inability to generate normal income due to the circumstances created by the pandemic.”

All games in England continue to take place behind closed doors. as a result. Pages in the second row in particular lose money every month.

Some clubs have applied for an interest-free loan, but for now this would only happen if they accept payment restrictions, which is not to be expected.

Back in December, the Premier League and EFL agreed on a rescue package that would allow lower division clubs to raise over £ 250m in funding to help them through the pandemic.

The Premier League provided up to £ 15 million to cover interest costs and agreement fees on a £ 200 million championship club loan facility to help meet PAYE liabilities.

PAYE’s postponement was extended to March in December, but if it expires it could create further complications.

A Treasury Department spokeswoman added, “The Covid Corporate Financing Facility provides short term loans to large corporations that make a significant contribution to the UK economy. It currently helps support nearly 2.5 million jobs in the UK.

“Companies that want to borrow must agree to certain conditions on dividends and pay reluctance, as taxpayers would expect.”

All companies wishing to borrow due on or after May 19, 2021 must agree to certain conditions that will be assessed on a case-by-case basis.

While discussions with the Treasury Department continue, alternatives are being worked out and, although at an advanced stage, nothing has been finalized.

The EFL was ready to pay out to championship clubs on Friday, but that delay comes after details of the government’s sports winter survival package were announced this week.

The Women’s Super League and Women’s Championship will receive a £ 2.25 million grant that will be used to meet essential costs of running the leagues during the coronavirus pandemic.

England Netball and the Vitality Super League will receive a grant of 4.2 million pounds, which has already enabled the start of the 2021 season to specifically promote women’s sport.

Funding will also be given to basketball and badminton as part of the second tranche of the government’s £ 300m Sports Winter Survival Package, which will provide around £ 250m in low-interest loans.

With the EFL’s ability to make loan payments, there is a feeling that football will continue to be treated differently from other industries, but a solution is expected to be found that is fair to all parties.


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