NATIONAL LEAGUE clubs face ruin as insurance companies will not pay out if the competition is suspended due to the coronavirus outbreak.
League bosses thought they would be covered for loss of matchday revenue vital to the survival of sides in the football pyramid.
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National League fixtures went ahead on SaturdayCredit: AHPIX.com
But they have learnt that Covid-19 is not covered because it is a new disease — with National League board member Jim Parmenter fearing HALF the sides could go under in the coming months.
The plight of the non- league sector could also have ramifications for the EFL, who are still trying to discover if their insurances will cover them for the suspension of matches until April 4.
Dover chairman Parmenter said: “There are insurances, business interruption insurance and others.
It’s a new disease, therefore it’s not prescribed in the insurance policies — therefore it is not covered.
Dover chairman Jim Parmenter
“The problem with the coronavirus is it’s not what is described by the insurances companies as what’s called a ‘notifiable disease’.
“It’s a new disease, therefore it’s not prescribed in the insurance policies — therefore it is not covered. It’s a really difficult situation.”
But SunSport understands that Premier League bosses believe they have policies that WILL kick in to cover potential losses.
Parmenter reckons the risk of so many teams going to the wall in the non-league game requires assistance from the Government and professional football.
He added: “You would hope that these people who are making these decisions about suspending football, know that. And I include the Government in that.
“This is not a two-week problem. This is going to be a three-month problem and for non-league football at any level, apart from one or two big clubs with very rich overseas owners, it’s going to be almost impossible to sustain for non-league teams.
Coronavirus has severely disrupted the sporting calendar
“Nobody should be under any illusion that I would say at least 50 per cent, if not more non-league clubs, will be in dire trouble if we go to this suspension.
“These guys involved in this industry all have families, all have mortgages and they’ve all got to be paid, or try to be paid.
“There’s two types of well-being — there’s the medical well-being which is very important, but there is also the commercial well-being of everybody involved.
“We are only in March, these guys have contracts until June.
“The Premier League are in a good position in that they have plenty of money.
“We all know the Euros will be cancelled next week and Wembley will be available for them if needed in June.
These are all the matches that have been suspended so far
“It will be different for every club but you have to make a decision whether you are trading solvent or insolvent.
“You must look at your finances and ask, can I continue as a limited company and still be solvent?
“If the answer is no, you have to take drastic action.”
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Source: Soccer - thesun.co.uk
