MailOnline: MPs write to the FA and EFL urging them to create a 'Football Finance Authority' with government cash to save clubs facing financial ruin from coronavirus

MailOnline: MPs write to the FA and EFL urging them to create a 'Football Finance Authority' with government cash to save clubs facing financial ruin from coronavirus

Article by Jack Bezants for MailOnline - published 28 May 2020

A group have MPs have called for urgent talks with the Football Association and the English Football League to address the financial impact of coronavirus on sport.

There are intensifying fears that a number of professional clubs are facing administration due to the outbreak of the pandemic.

League Two have already voted to end their season because they cannot afford to bankroll the widespread testing regime rolled out in the Premier League that would help to keep players and staff safe.

The letter, which was written by Conservative MP Damian Collins to the chair of the Department of Culture, Media and Sport, Oliver Dowden, as well as EFL chairman Rick Parry and FA chairman Greg Clarke, was published on Twitter on Thursday.

Collins draws particular attention to the situation of clubs in League One and League Two.

He suggests that a Football Finance Authority is created by the Football Association and backed financially by the government. 

Those funds, that would help clubs meet short term needs while they restructure their financial models, would not be offered as loans but would be 'exchanged for a minority shareholding of the club between 10 and 49 per cent'.

In turn, an FFA approved independent director would take a place on the board of the club itself.  

They would have access to the financial records of the club they are working with and would be expected to correspond closely with the FFA to ensure financial affairs are brought back in line.

Then, the letter says a Supporters' Trust or local authority will be able to buy back the government stake at a discounted value. The funds raised in this way would return to the government. 

Copyright 2019 Damian Collins. All rights reserved

Promoted by Russell Tillson for and on behalf of Damian Collins, both of Folkestone & Hythe Conservative Association both at 4 West Cliff Gardens, Folkestone, Kent CT20 1SP

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