Luton Chief Executive, Gary Sweet has warned the future of clubs “at every level” at risk unless there is “a swift and material aid package” from the game’s authorities to deal with the impact of Covid-19.
Sweet has been a central figure in the Hatters’ rise from non-league back to the Championship and, having experienced the issues involved in running a club at four levels of the English pyramid, is seriously concerned as the game’s suspension heads into its second month.
“Lower-league clubs are vulnerable because they are so reliant upon ticket income and many Championship clubs are vulnerable due to the severe overstretching of expenditure,” he said.
“At Luton we have the benefit of Championship central distribution and a relatively low cost base. This situation is going to hurt us, so I dread to think how it will impact some clubs.”
On 3 April, the Premier League agreed to advance £125m in payments to the EFL and National League, although only £2m of it will go to the 68 National League clubs.
The situation in the EFL is so bad that Tranmere chairman and former FA chief executive Mark Palios said that without a strong plan this week it “will potentially lead to carnage, for clubs players, owners and fans alike.”
On Tuesday he said: “This week is absolutely critical for the EFL and the survival of many of the 71 clubs that it represents.
“The only way out of this mess is to take the opportunity to fundamentally restructure the flawed financial model on which football has been based since the establishment of the Premier League. We have to address the unregulated wages market, which means the mega-salaries paid at the very top of the game have a huge inflationary impact all the way through the professional pyramid.
“The crisis facing us should not be underestimated. When Bury FC collapsed, its community was devastated and there were lots of platitudes about ensuring that it never happened again. But it is about to happen again and many times over, unless we change the way we are handling this, and change it urgently.
“In a week when the Covid death toll hit 10,000, it will sound trivial and melodramatic but this is perhaps the most important seven days in the history of the EFL.”
English football is stopped indefinitely.
Premier League clubs meet on Friday, but it will be mid-May before Uefa comes forward with its proposals, having already warned that any league ending its season prematurely puts places in next season’s European competitions at risk.