Athletic Article: League One and Two Seasons to be abandoned next week

[Indian Dan]

The other thing is that if the PL restarts they’ll help financially with clubs in the EFL

 

[Deepcut Cobbler]

Come 30 June, many players will be out of contract. Some clubs who have something to play for may continue to pay their wages, others that don't will release theirs, saving money, and play players from what's left or youth players if they have any. This will have an artificial effect on the results of games that are remaining, if they are forced to play them.
Close down the current season without playing another game.
No promotion/relegation aside from Swindon promoted and Barrow promoted to maintain the 24 in each division.
Season 2020-21 to start when it is safe to do so.
This will enable a line to be drawn under this season, players and staff know where they are and can plan/negotiate in preparation for the start of the new season when it is safe to do so, without the will they/won't they situation that is hanging over everyone as it is now.
Players out of contract can then sort out where they are going to get the funds to pay their mortgages and other household bills, ether by joining another club or joining the many on the unemployed list.

 

[Jerry]

Just the losses for voiding will almost certainly be significantly higher than a season decided by PPG.

But why would voiding mean more losses? That's all I'm trying to find out.

I couldn't give a monkeys either way to be honest, just interested to know the reason.

 

[Kenneth E End]

Not quite as simple as letting players go on 30 June - players with no new team will taking an extra months wages as "severance pay", but I don't believe that is a legal requirement - more a gentleman's agreement with the PFA.

Something has to give eventually. We haven't played a game now for 2 months... the majority of players in the Championship have been sitting on their arse doing nothing; admittedly outside of their own control, but seeing their back office colleagues furloughed and/or taking huge pay cuts. The players need to wake up and they (and the PFA) need to start taking the lead. Nothing is happening. The longer it goes on the worse it gets.

Next payroll is coming in 2-3 weeks time. That just has to stretch some clubs. The last payroll may have been ok because they've been advanced payments and have money budgeted in the bank from pre-sales. We have to find £600,000 to pay the wages.

Right now, clubs should be gaining season ticket sales - this time last year we had virtually sold out of season tickets (7000). This year it has just gone over 3000... probably a £1m+ deficit.

We are owed probably another £2-3m this summer in payments for James Justin and Jack Stacey - will Leicester and Bournemouth pay these bills? Luckily, the way we were structuring the club this season, a third of these monies go into sustainability whereas others would splurge it straight away.

I won't be asking for refunds for the 25% of the season ticket we can't use, but of course there will be those who can't pay their bills at present and I wouldn't look down on someone needing that cash. We are also holding monies for opposition clubs for away games.

 

[Devon_Lad]

I said there was two alternatives if the PL didn't continue the season. I didn't say both were perfect and I stated both would come with losses to clubs. Just the losses for voiding will almost certainly be significantly higher than a season decided by PPG. Which is why I've said PPG will happen down here if it happened in the Prem.

The ideal solution is for the Premier League to complete the season for the sake of football's finances from the PL to non league. And for the sake of our clubs, we have to hope it can occur. As ridiculous as that sounds...

The prem is finishing behind closed doors, not on ppg. They can afford it. The point is the EFL can't which is why we need an alternative solution. Void everything, which IS the fairest way. Championship can play with the relegated prem teams as extra and just start a week earlier and finish a week later if overly worried about a too pact fixture list.

 

[Devon_Lad]

I just can’t see there is any appetite for any more games from most L1 and L2 clubs.

Behind closed doors viewed on ifollow, given the scenario he suggested, then why not? Bit of extra money for those clubs, split with the EFL to cover tests for those mentioned clubs.

I still favour voiding it, obviously - But the suggestion given is workable, albeit it won't happen.

 

[TrinidadsNumberOne]

But why would voiding mean more losses? That's all I'm trying to find out.

I couldn't give a monkeys either way to be honest, just interested to know the reason.

Because a voiding would be an immediate breach of the contract (as the season was for nothing as opposed to PPG) which would lead to an instant renegotiation. How this will be achieved exactly is unclear, but would more than likely either be a far lesser sum of money per season to be spread over the remaining 2 years as a penalty clause, or the remainder of the contract deducted by the sum owed to broadcasters but spread out over 3 or 4 years, meaning clubs receive significantly lower annual financial income, but more importantly broadcasters revenues are protected.

PPG would come with a (smaller) penalty for unfulfilled games despite receiving payment as well, but given the season wasn't expunged and promotion and relegation occurred, the season would technically be complete (even though in essence, it isn't), but the games shown would have actually meant something towards the competition compared to null and void, which would strike them from the record and cause even bigger headaches on how to settle it. Broadcasters will be far more sympathetic to a PPG solution than a null and void solution for these reasons. But ultimately, they understandably want to complete the season.

There was an article weeks ago saying Sky are happy not to charge immediately, which could be of benefit for clubs. But in the small print, it was said that Sky and BT would be happy to help clubs, but not to the extent where they would jeopardise their own sport channels existences. This would ultimately mean no rise and more than likely a drop in TV rights deals, dramatic cutbacks across the board, clubs having to reduce spending for the next few years which further devalues the product, longer-term deals for the league rights as opposed to the three years now and suitors such as Amazon and Google who were driving up the rights now seeing vulnerability within the Premier League product.

It's worth noting that foreign broadcasters that show the Premier League, many of whom have other flagship sports such as NFL, NRL, AFL etc, have demanded an immediate rebate if the season is null and voided. That alone would cost clubs tens of millions each and is why null and void hasn't happened yet. It's all a mess and I wish the game was as simple as it was in the pre-PL era, but we're not going back to those days anytime soon. Football has monetised itself to the point where TV now calls the shots.

 

[Devon_Lad]

But why would voiding mean more losses? That's all I'm trying to find out.

I couldn't give a monkeys either way to be honest, just interested to know the reason.

It doesn't. I've put this across 3 or 4 times now and had no answer either.

 

[TrinidadsNumberOne]

The prem is finishing behind closed doors, not on ppg. They can afford it. The point is the EFL can't which is why we need an alternative solution. Void everything, which IS the fairest way. Championship can play with the relegated prem teams as extra and just start a week earlier and finish a week later if overly worried about a too pact fixture list.

Of course they can afford to play on. My point was more that they can't afford NOT to finish the season, and our solidarity payments and TV money will be collateral damage if the season was declared null and void, causing each and every club in the PL and EFL to lose millions in the long run. Yet you're in favour of losing all that money?

 

[Devon_Lad]

Of course they can afford to play on. My point was more that they can't afford NOT to finish the season, and our solidarity payments and TV money will be collateral damage if the season was declared null and void, causing each and every club in the PL and EFL to lose millions in the long run. Yet you're in favour of losing all that money?

No because I still don't understand your point. The PL is going to carry on. The efl will get tv money for games already broadcasted. You seem to think there is a difference financially between voiding and ppg finish. Either way the broadcasting money is going to be the same!

Also, on a separate note - It doesn't even look like Cheltenham will survive next season.
https://www.bbc.co.uk/sport/football/52583980

 

[TrinidadsNumberOne]

No because I still don't understand your point. The PL is going to carry on. The efl will get tv money for games already broadcasted. You seem to think there is a difference financially between voiding and ppg finish. Either way the broadcasting money is going to be the same!

Also, on a separate note - It doesn't even look like Cheltenham will survive next season.
https://www.bbc.co.uk/sport/football/52583980

Yes and we hope it does carry on this season. But these are the scenarios if it DOESN'T carry on.

Every single club has been paid 100% of broadcasting revenue for the season as of February. Yet 25% of the PL season is remaining and 20% of the EFL season is remaining, so this money is liable to be rebated by the broadcasters. I'm not saying the broadcasters will demand money for the games already broadcast, they'll be demanding money for the games YET to be broadcast. Broadcasters are not a charity after all.

There's a massive difference between voiding and PPG, the only similarities are that the season won't go 38/44/46 games and the broadcasters would be entitled to some form of rebate.

The big difference is

Voiding = expunged, season hasn't happened, this violates the EFL/FA/PL tripartite agreement and violates the broadcasting contracts that expect to see promotion and relegation in a season, as Rick Parry stated this week. This will cause an immediate renegotiation of the TV contract which would lead to dramatically lesser revenues across the board.

PPG = season happened, standings determined by PPG formula, teams are promoted and relegated as per the FA/PL/EFL tripartite agreement, thus fulfilling the broadcasting contract criteria and the TV deals are likely to remain as they are. Losses will be incurred for the games unable to be broadcast this season of course, but not to the extent of voiding which would have ramifications over the next 2 years of the PL deal and EFL solidarity payments AND the next 4 years of the EFL TV deal.

That's the massive difference. It's not just about what happens now, it's about what happens between now and 2024...

 

[Jerry]

Voiding = expunged, season hasn't happened, this violates the EFL/FA/PL tripartite agreement and violates the broadcasting contracts that expect to see promotion and relegation in a season, as Rick Parry stated this week. This will cause an immediate renegotiation of the TV contract which would lead to dramatically lesser revenues across the board.

Okay I get that it maybe violates the tripartite but does it actually violate the broadcasting contracts? Have we had any actual confirmation of this?

 

[TrinidadsNumberOne]

Okay I get that it maybe violates the tripartite but does it actually violate the broadcasting contracts? Have we had any actual confirmation of this?

When Paul Barber of Brighton came up with his masterplan to have no relegation for this season, both the FA and broadcasters said it would violate their terms and conditions and that the FA would explicitly veto any proposal to scrap relegation for this season.

 

[Boletus Edulis]

Come 30 June, many players will be out of contract. Some clubs who have something to play for may continue to pay their wages, others that don't will release theirs, saving money, and play players from what's left or youth players if they have any. This will have an artificial effect on the results of games that are remaining, if they are forced to play them.
Close down the current season without playing another game.
No promotion/relegation aside from Swindon promoted and Barrow promoted to maintain the 24 in each division.
Season 2020-21 to start when it is safe to do so.
This will enable a line to be drawn under this season, players and staff know where they are and can plan/negotiate in preparation for the start of the new season when it is safe to do so, without the will they/won't they situation that is hanging over everyone as it is now.
Players out of contract can then sort out where they are going to get the funds to pay their mortgages and other household bills, ether by joining another club or joining the many on the unemployed list.

Can you explain your thinking behind why Swindon go up but Bolton and Southend do not come down. Whatever happens those two have to be out of League 1.

 

[Boletus Edulis]

Behind closed doors viewed on ifollow, given the scenario he suggested, then why not? Bit of extra money for those clubs, split with the EFL to cover tests for those mentioned clubs.

I still favour voiding it, obviously - But the suggestion given is workable, albeit it won't happen.

As I keep saying, they won’t be voiding the league, so you position is purely academic.

 

[Jerry]

When Paul Barber of Brighton came up with his masterplan to have no relegation for this season, both the FA and broadcasters said it would violate their terms and conditions and that the FA would explicitly veto any proposal to scrap relegation for this season.

Okay thanks. In that case then I agree that voiding the season is off the table. Therefore, as unfair as it is, PPG is the only solution. But as Devon Lad has pointed out there are different ways in which PPG can be implemented which would effect the outcome.

Unfortunately some clubs are going to feel shafted no matter what happens.

 

[Boletus Edulis]

No because I still don't understand your point. The PL is going to carry on. The efl will get tv money for games already broadcasted. You seem to think there is a difference financially between voiding and ppg finish. Either way the broadcasting money is going to be the same!

Also, on a separate note - It doesn't even look like Cheltenham will survive next season.
https://www.bbc.co.uk/sport/football/52583980

your last point is the big sub text. We can argue about how this season should finish, but survival is the really big question. How many clubs will survive without PL support? How are Exeter ‘s finances?

 

[Indian Dan]

No because I still don't understand your point. The PL is going to carry on. The efl will get tv money for games already broadcasted. You seem to think there is a difference financially between voiding and ppg finish. Either way the broadcasting money is going to be the same!

Also, on a separate note - It doesn't even look like Cheltenham will survive next season.
https://www.bbc.co.uk/sport/football/52583980

Won’t just be Cheltenham. Could just as easily be you or us. Who knows. BCD games is impossible for L1 and L2 - nobody could afford it and come July 1st most clubs will have no players.

 

[chipmunx]

Are Exeter fans always this angry?
Just imagine what they'll be like next season when they could have Carlisle AWAY on a Saturday followed by Barrow AWAY on the Tuesday...

 

[Boletus Edulis]

Won’t just be Cheltenham. Could just as easily be you or us. Who knows. BCD games is impossible for L1 and L2 - nobody could afford it and come July 1st most clubs will have no players.

Right. Our owner stated that those clubs with debt, possibly as loans to the owner, will be in trouble first. He included long term contracted players beyond 31st June in this, in what he referred to as gearing.

 

[TrinidadsNumberOne]

I'm just so grateful for our fans and our new investors who bought Hassall out for £1.75 million before this all happened else we'd have been one of the first clubs to go bust, without a shadow of a doubt. We went from one of the most precarious situations to one of the more secure ones for a lower league club.

But those with crippling debts and those who have overspent? It's gonna be a horribly long Summer this...

 

[valefan16]

I'm just so grateful for our fans and our new investors who bought Hassall out for £1.75 million before this all happened else we'd have been one of the first clubs to go bust, without a shadow of a doubt. We went from one of the most precarious situations to one of the more secure ones for a lower league club.

But those with crippling debts and those who have overspent? It's gonna be a horribly long Summer this...

Scary thought what would have happened to us under Norman...

Financially something will need to be done if no fans until 2021 does happen though even for the well run clubs at this level.

We haven’t seen anything like this since WWII in football but money is much more crucial now than it was then in the game.

 

[TrinidadsNumberOne]

Moral of the story, never be owned by someone called Norman!

Rugby League is asking the Government for a bailout. A lot of the clubs in Super League (I'm not counting that Toronto sham) spend wage bills similar to higher budget League Two clubs at around the region of £2 million per year. So if they got a bailout I'd expect League One and Two clubs to potentially gain some assistance.

Unchartered territories. ITV Digital was the last crisis, but that's when the broadcaster went under after the Football League failed to check guarantees that the company could provide funds. Now we live in a situation where the league is in crisis and the broadcaster has it staring down the barrel of a gun. Interesting times are ahead and I think we'll get through it, but once the PPG discussion is concluded and the season is brought to a conclusion, the next argument is going to be about salary caps and that's gonna piss off a few...

 

[Trapdoor]

your last point is the big sub text. We can argue about how this season should finish, but survival is the really big question. How many clubs will survive without PL support? How are Exeter ‘s finances?

We wont go bust because we are fan owned. We may have to reduce the entire playing headcount if we aren't playing until 2021, but if the season starts up again as planned the trust will just have to stump up the bill. We keep some money aside for rainy days such as this. The great thing about not having owners is that you can go look at all our finances online very easily. The other great thing is not having to pay exorbitant directors and owners salaries so we save a lot of money there.

 

[Indian Dan]

Can’t see how being fan owned can prevent a club from going bust. It’s down to finances. If your accounts are transparent what is/was your profit and what would be your expenses for say 6 months with no income.

 

[Trapdoor]

Our expenses are about 2m a year with a full paying staff.
Without the playing staff it would be maybe 400k.

The trust donates around 700k a year I believe.

If there is no football for 6 months, the players will just have to accept that we won't be issuing contracts until the end of the year. If other clubs are willing to issue contracts for 6 months without playing and getting gate receipts then good luck to them.

 

[Indian Dan]

So where does the money come from when it comes to restocking your playing staff? Not trying to be pissy with you because these problems will apply to all clubs.

 

[Trapdoor]

when we have commitment that games will be restarted we would probably offer contracts for that planned restart date.
As I said the trust has some rainy day money that is set aside for this kind of event.

Plus we are expecting a windfall from a future ollie watkins sale which will help a bit. 20% clause.

 

[TrinidadsNumberOne]

My guess is as soon as the season is abandoned tomorrow, the retained lists are about to pop out in the next week or so and I think 90% of those out of contract will find themselves in the wilderness for the foreseeable.

Apart from maybe James Jones due to his age, gonna be sad to see three of our most experienced players more than likely go who have been so integral in our revival the past 3 years.

 

[Indian Dan]

Tbh, I reckon even those players with contracts could be toast.