Huddersfield owner says 50 or 60 clubs could go bust in next year

[webfact]

Huddersfield owner says 50 or 60 clubs could go bust in next year

 

FILE PHOTO: Soccer Football - Championship - Huddersfield Town v Derby County - John Smith's Stadium, Huddersfield, Britain - August 5, 2019 Huddersfield Town Chairman Phil Hodgkinson Action Images/Ed Sykes

 

LONDON (Reuters) - Up to 60 English lower league soccer clubs could go out of business if the sport fails to plan for the impact of COVID-19 beyond the current season, Huddersfield Town owner Phil Hodgkinson said on Sunday.

 

English professional soccer has been suspended since March.

 

Championship (second tier) clubs are due to return to training in small groups on Monday, with hopes of completing the season behind closed doors.

"The problem is not whether we finish (the) season or not, it is what happens after that," Hodgkinson told the BBC.

 

"If we don't come to an agreement there will be no football pyramid.

 

"There are clubs I know of that are only still trading because they are deferring wages and (tax) and other creditors. They will need paying at some point."

 

Hodgkinson said the worst case scenario would be playing next season without fans allowed to attend matches, leaving many clubs without their major source of income.

 

Clubs are already facing significant expenditure for COVID-19 testing.

 

"There is an absolutely real, stark probability that if something isn't agreed now within football to ensure all clubs can pay their bills and get through to the point where income is resumed, you will be looking at 50 or 60 clubs ceasing to exist," said Hodgkinson.

 

He suggested players' wages needed to be reduced by 30 to 50% at every level until crowds could return, and accused some people in the game of "just sticking their heads in the sand."

 

(Reporting by Alan Baldwin, editing by Pritha Sarkar)

 

-- © Copyright Reuters 2020-05-25

 

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[owl sees all]

Absolutely correct.

 

We have been saying as much on TVForum since matches were suspended.

 

All sports will face challenges. Football might muddle through but not without conflicts between the finance department and the players.

[ChipButty]

Like most clubs have been over paying their players by 50% 

[blazes]

There's also the potential problem that (just like with restaurants etc) people will simply not be bothered to turn up, even if all Covid regulations are taken down.

 

Or at least not turn up in the kind of numbers that will keep the clubs afloat....

 

 

 

[sammieuk1]

Swindon town top of the list with a lot of doggy chairman Lee Power's share dealing by the look of things ????

[spidermike007]

The entire world of sports will be up ended by this economic shutdown and the social distancing paranoia. And there will be an economic reset. In the US, people were paying $300 for a really mediocre seat to see a baseball game. Now, who will want to be in a stadium with 60,000 people? In the NBA, good seats (first 20 rows) were selling for $500 to $2000 per seat. In my mind, that was insanity. And now? Will that same demand be there? Will people want to brave the crowds in arenas with 20,000 people? 

[peleid]

Who knows where life is going to be at in the new normal in say 6 months or 6 years, many sports/businesses will go to the wall

[hotchilli]

On 5/25/2020 at 7:28 AM, webfact said:

He suggested players' wages needed to be reduced by 30 to 50% at every level until crowds could return, and accused some people in the game of "just sticking their heads in the sand."

I'm sure the top tier premma donnas can afford a cut, maybe flog off the odd Ferrari or Roller to off-set things!

The lower end of the table I do feel sorry for.

[mrbojangles]

Macclesfield of League 2 have been charged with failing to pay the players wages.Won't be the only club i fear

[wilai]

1 hour ago, mrbojangles said:

Macclesfield of League 2 have been charged with failing to pay the players wages.Won't be the only club i fear

They have previous I seem to recall. The Covid is a good excuse for their poor financial management over a couple of years.