Barry owen

[Barry Owen]

Before fans get excited about recruitment for next season (well the few that seem bothered at the moment), it might have been helpful if the club had been transparent about its possible financial limitations

A limited number of clubs have made use of the interest free loan agreement which has been possible as part of the 50 million hand out from the Premier League.

 

Leagues 1 and 2 teams had two stages of payments some months ago which were grants.

 

These monies amounted to 30 million pounds.

 

The clubs voted to make the remaining  20 million pounds available by way of interest free loans. To date a limited number of clubs have taken advantage but these loans are strictly regulated. It is for this reason that the majority of clubs have not borrowed from the scheme.

The EFL has no desire to see clubs go under but equally so they intend that clubs are financially restricted whilst borrowing.

 

Some of the limitation whilst money is owed

is that clubs will be under embargo and only able to sign free agents.

 

Owners cannot take dividends from a club to help pay off their Directors Loan.

 

Transfer fees are monitored and loan debt taken from these monies.

 

In the event of non payment of loan debts, recovery would occur by deducting money from the clubs solidarity payments.

 

The EFL are acutely aware that in the event of serious debt, that some owners do not have any assets to set against their loan.

 

The chances are that a good squad could be assembled from the growing number of players out of work this summer but the club, I suggest ,will operate off a low budget due to infra- structural changes which have affected the club seriously in respect of its income lately.

 

I hope this information is helpful and hope it puts matters into context.