EFL rescue package (5 Viewers)

[jordan210]

Support for Championship Clubs

The Premier League has also agreed to provide a payment commitment of up to £15m to cover interest, arrangement fees and professional fees to allow the EFL to secure a £200m loan facility that it will then on-lend to Championship Clubs interest free.

Details are as follows:

• The loan facility is provided to support Clubs in the Championship to meet PAYE liabilities up to the end of 30 June 2021.
• Loans are capped at £8.33m per Championship Club with monies received to be repaid by June 2024 using Premier League solidarity receipts or other central Premier League or EFL Distributions.
• This fund is not available to any Club in breach or suspected breach of EFL Regulations and Clubs will again need to submit evidence in their applications to Club eligibility.
• Any Club in receipt of a loan payment as detailed will be required to continue to maintain compliance with the EFL’s financial regulations.

 

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[edgy]

• This fund is not available to any Club in breach or suspected breach of EFL Regulations and Clubs will again need to submit evidence in their applications to Club eligibility.

who might this fuck over then?

 

[tisza]

so this is a loan just to keep the taxman from the door?

 

[fernandopartridge]

"here's more debt so we can heist you of your young talent for the next few years"

 

[Sky Blue Harry H]

so this is a loan just to keep the taxman from the door?

Exactly - League 1 and League 2 clubs get a grant (don't have to pay back)
Championship clubs - loans available (may help a club pay bills, but doesn't help the overall balance sheet. Sooner have got a L1 size grant.

 

[BornSlippySkyBlue]

"here's more debt so we can heist you of your young talent for the next few years"

As they are being stopped from bringing in under 18’s from the EU post Brexit transition (another ‘benefit’ no doubt), they need some extra leverage against the lower leagues so they can steal all ours instead...

 

[Liquid Gold]

£10m towards the Joy Dome

 

[hill83]

 

[skybluesam66]

the issue will be for relegated clubs
Take an 8.33m loan while in the championship
Get relegated
How do you then pay it back as you no longer have the solidarity payments to offset against

 

[AFCCOVENTRY]

Let’s sign a striker now

 

[Frostie]

As we were in League One when the pandemic initially hit, would we be eligible for the grant?

 

[ovduk78]

Exactly - League 1 and League 2 clubs get a grant (don't have to pay back)
Championship clubs - loans available (may help a club pay bills, but doesn't help the overall balance sheet. Sooner have got a L1 size grant.

L1 & L2 get a £30m grant and a £20m loan according to Forest Green chairman

 

[Sky Blue Harry H]

L1 & L2 get a £30m grant and a £20m loan according to Forest Green chairman

Hadn't seen the level of detail, but the grant element won't have to be repaid (unlike any loan)

 

[Evo1883]

We'd be best staying away from any loans if possible

 

[Sky Blue Harry H]

We'd be best staying away from any loans if possible

Unless they're interest free - then we can stick the money in a high interest account or repay loans that are incurring interest (although I bet they won't hand them out without a serious amount of scrutiny/form filling!!)

 

[shmmeee]

We'd be best staying away from any loans if possible

TBF if there’s any owner I’d trust to get us on the right side of a debt agreement it’s Sisu. Probably end up owning the PL.

 

[mark82]

TBF if there’s any owner I’d trust to get us on the right side of a debt agreement it’s Sisu. Probably end up owning the PL.

I can feel the court case being prepped already.

 

[stupot07]

This is good news and will help us keep Hamer in January.

Sent from my SM-G965F using Tapatalk

 

[BornSlippySkyBlue]

the issue will be for relegated clubs
Take an 8.33m loan while in the championship
Get relegated
How do you then pay it back as you no longer have the solidarity payments to offset against

That’s a good question tbf. What would happen to a L1 club on the hook for £8m to be repaid by 2024?

 

[Frostie]

That’s a good question tbf. What would happen to a L1 club on the hook for £8m to be repaid by 2024?

It says "shortfall will be taken from solidarity payments" but that could be equally crippling.

Does anyone know if eligibility is based on league we're in now?

If so relegated clubs like Charlton & Hull benefit massively as they've had the Championship TV money + a grant.
On the other hand promoted clubs like us are stiffed as we were obviously in League 1 when the pandemic hit & have been hugely impacted.

 

[Sky Blue Harry H]

Slightly off piste, but Norwich (top of the league) are in Tier 2 and 2000 fans allowed back for home games against Sheff Wed (Sat) and Forest (midweek). Went on sale on Tuesday - and still haven't sold out either of them at close of play today !!! Bit surprised at that.

 

[BornSlippySkyBlue]

It says "shortfall will be taken from solidarity payments" but that could be equally crippling.

Does anyone know if eligibility is based on league we're in now?

If so relegated clubs like Charlton & Hull benefit massively as they've had the Championship TV money + a grant.
On the other hand promoted clubs like us are stiffed as we were obviously in League 1 when the pandemic hit & have been hugely impacted.

The devil will be in the detail no doubt. Wonder if they’ll publish details of which clubs take a loan out. I’m curious if we need it...

 

[tisza]

As expected raft of strings attached.
L1 & 2 (that take the money) can't pay transfer fees for at least 1 transfer window. Then limited to a spend of 20k in next 2 windows. Free transfers only allowed to replace a leaving player and at 75% of leaving player's salary.

 

[KenilworthSkyBlue]

Boddy featured on BBC Sport commenting on 'bailout'. Interesting that the loan to Championship clubs must be used to cover PAYE debt. What about lost revenue from no gate recipients?

EFL rescue package 'doesn't do a lot for Coventry' says chief executive Dave Boddy

Coventry City chief executive Dave Boddy says his club will not benefit at all from the Championship's £200m Premier League rescue package.

www.bbc.co.uk

 

[BornSlippySkyBlue]

Boddy featured on BBC Sport commenting on 'bailout'. Interesting that the loan to Championship clubs must be used to cover PAYE debt. What about lost revenue from no gate recipients?

EFL rescue package 'doesn't do a lot for Coventry' says chief executive Dave Boddy

Coventry City chief executive Dave Boddy says his club will not benefit at all from the Championship's £200m Premier League rescue package.

www.bbc.co.uk

So much for the £8m interest free loan for the new stadium

 

[chiefdave]

Is this basically that the Prem don't want the bad press of the taxman kicking off and threatening to wind up EFL clubs but want to do the bare minimum they can get away with?

 

[fernandopartridge]

I think football is not far off splitting into two games. The transnational elite game watched mostly on TV with a different set of rules (VAR) and the traditional game played at national, regional and local level. Everything that happens seems to push it in that direction.

 

[Skybluemichael]

EFL rescue package 'doesn't do a lot for Coventry' says chief executive Dave Boddy Dave Boddy doesn’t seem impressed with it

 

[lordy_87]

EFL rescue package 'doesn't do a lot for Coventry' says chief executive Dave Boddy Dave Boddy doesn’t seem impressed with it

Rightly so, we do our best to pay our tax and run the club as best as we can and get nothing from this loan, yet other clubs spend hundreds of thousands on wages every week in this league, building up PAYE debt but will benefit from this.

 

[Magwitch]

Boddy featured on BBC Sport commenting on 'bailout'. Interesting that the loan to Championship clubs must be used to cover PAYE debt. What about lost revenue from no gate recipients?

EFL rescue package 'doesn't do a lot for Coventry' says chief executive Dave Boddy

Coventry City chief executive Dave Boddy says his club will not benefit at all from the Championship's £200m Premier League rescue package.

www.bbc.co.uk

Not sure what argument Boddy can have about lost gate receipts when we (sisu) made a decision to play 22 miles from Coventry more than halving our income.

 

[Wyken Sky Blue]

Not sure what argument Boddy can have about lost gate receipts when we (sisu) made a decision to play 22 miles from Coventry more than halving our income.