Chairman Worries If No Help Clubs Will Fold

Rotherham United Chairman Tony Stewart has warned that if help for football clubs isn’t forthcoming then he fears that a number of clubs could be in administration by the end of the month.

Chairman of the EFL, Rick Parry asked for an emergency hand-out to help clubs badly hit by the problems that the coronavirus has given them and although the Premier League have offered some monies to help it seems it isn’t nearly enough.

Millers Chairman Mr Stewart is worried for some of the clubs telling the Yorkshire Post that if a ‘rescue plan’ doesn’t appear he fears that ‘five to seven clubs’ will go out of business saying, ‘We need help from one of the quarters, the Premier League, Government or EFL – or all of them put together. If nothing happens then by the end of this month, there will probably be half a dozen or so going into administration.’

Although the Millers do seem to be in a good position, thanks mainly to the way that business has been conducted in the past as well as now, Mr Stewart says that so far the club has lost around one millions pounds so far.

‘People have been generous,’ Mr Stewart said, ‘they have been buying kits and the sponsors have been really good. But if this went on like this for a full season I think it would be two-and-a-half to three million pounds (the clubs lose).’

And there will be a lot of clubs in a worse state than that.

Mr Stewart says that Rotherham United are spending around £50,000 a month on Covid testing and that is money that hadn’t been budgeted for and has to come from somewhere.

‘We were looking forward to October and getting some fans into the stadium,’ said the Chairman. Of course, that hasn’t happened. ‘Any business has a plan and do cash flows,’ Mr Stewart said, ‘but it’s difficult to work that out when you have the expense of putting on a show but have no audience to pay for it.’

The Premier League clubs always have some television revenue to help their cash flow but there aren’t many EFL clubs that have that same luxury.

Personally, I think Mr Parry has been a bit slow in asking for help and perhaps should have had a plan B some months ago for if fans weren’t allowed back as early as expected – which has now happened. And I don’t want to be a kill joy but I can’t see fans being back in stadiums much before the spring – although I sincerely hope I’m wrong.

Today, on the Official Site there is an ‘open letter to us fans’.