ENGLISH football clubs are sitting on a time bomb which threatens to put them out of business — because their insurance does NOT cover them for the coronavirus shutdown.
SunSport understands there are huge concerns within the EFL that policies may not pay out despite clubs initially believing they were protected.
Walsall, like many other EFL teams, are facing uncertain times aheadCredit: David Linney (c) dlinneyphotography@yahoo.co.uk www.dlinneyphotography.com
And the ONLY way to stop scores of sides in England from falling into the abyss is for the current season to be played out in full — no matter how long it takes.
Championship clubs discussed their options yesterday, with the feeling that moves had to be made for a resumption — even if it was behind closed doors to begin with.
The suspension of football is already biting hard, with National League Barnet announcing the redundancies of 60 non-playing staff, while Walsall chairman Leigh Pomlett predicts a number of teams face bankruptcy.
He said: “It wouldn’t surprise me. It doesn’t take long for a business to get into a cash spiral decline.
“When it does, it’s almost impossible to get out of it.
“I’d be hugely disappointed if there was not support for us from the PFA, the EFL and the Government.”
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Barnet are losing £100,000 per month and chairman Tony Kleanthous says drastic cuts were needed to ensure the club “continues to survive and remains financially stable”.
Kleanthous, who maintained boss Darren Currie will remain in charge, said: “It’s been a difficult few days having to deliver the bad news but it’s something that had to be done.
“The knock-on effects are heart-breaking. I am fully aware of how this will impact my phenomenal team of hard-working support staff across the group.”
The crippling financial implications now threaten to wreak havoc throughout the game in this country, with EFL bosses set for an emergency meeting today to discuss what they can do to avoid ruin.
At the heart of it is the fact Covid-19 did not exist when individual clubs took out their insurance policies.
Each agreement is based on ‘Business Interruption’, which provides cover for firms should matters beyond their control prevent them from going about their normal trading.
That includes a section called ‘Notifiable Diseases’, with numerous illnesses listed under those terms.
But because the current strain of coronavirus did not exist when the policies were drawn up, it is not prescribed as an agreed Notifiable Disease.
That means insurance companies do not have to pay out to cover for loss of earnings from cancelled matches during the shutdown.
Another concern is that NONE of the insurance policies across the professional game — from Premier League through to EFL and National League — will pay out unless the UK government calls a nationwide lockdown.
The current self-imposed suspension is not enough to trigger any pay-outs to those covered — and even when policy conditions are met, most will only cover up to 50 per cent of any lost revenues.
That is why the EFL and Premier League are so desperate to play out the remainder of the season later this year, at all costs.
A senior official at an EFL club told SunSport: “Insurance is not the answer — playing games, as soon as it is safe to do so, is.”
Walsall chairman Leigh Pomlett predicts a number of teams face bankruptcyCredit: Getty Images – Getty
Source: Soccer - thesun.co.uk
