Premier League chief executive Richard Masters has defended clubs' use of the government's furlough scheme, warning that some top-flight sides face a 'very real threat' of going bust due to the coronavirus crisis. In a letter to the parliamentary select committee for digital, culture, media and sport, Masters described losses at an 'unprecedented level' – potentially exceeding £1bn – and an uncertain future for the game.
Masters wrote: 'The furlough scheme announced by Government is meant for the whole economy... We do agree with you that restraint needs to be shown by all and we and our Clubs are doing just that.' However, four clubs – Newcastle, Tottenham, Bournemouth and Norwich – have applied to furlough staff, drawing widespread public disapproval. Liverpool reversed a similar decision on Monday after fierce criticism.
Masters painted a bleak picture, stating: 'We face a £1 billion loss, at least, if we fail to complete Season 2019/20... Ultimately, the very heavy losses that we face will have to be dealt with or else Clubs and other enterprises who depend on football for income will go out of business.' He noted that the league, clubs and players contribute over £3bn annually to the exchequer.
Football Association chairman Greg Clarke echoed the warning, saying: 'Football faces economic challenges beyond the wildest imagination of those who run it... We face the danger of losing clubs and leagues as finances collapse.' Clarke, who has taken a 25% pay cut, urged stakeholders to 'share the pain' to keep the game alive.
DCMS committee chair Julian Knight responded combatively, calling it 'frankly laughable' to claim clubs are showing restraint. 'Liverpool has listened to fans, done the right thing and changed its mind. It is time for the Premier League to stop defending the indefensible,' he said.
