The EFL has announced its intentions to supply cash aid packages to struggling football clubs in the wake of the Covid-19 epidemic. However, some experts are wondering just how long the cash will last before the clubs are back where they started.
According to one expert, clubs like Hull City FC should not expect the cash aid to stretch further than a few weeks. The football finance professional has warned Hull City that they could use up the EFL’s emergency cash in as little as 3 weeks or less.
The EFL recently released a £50 million short term relief fund in a bid to assist football clubs with the cash flow issues they are facing. The Coronavirus pandemic has hit the world’s economies hard to date, but sports organisations are expected to be particularly disadvantaged by the pandemic due to a large portion of their revenues being earned during live sporting events.
Premier League Payment Advanced
The £800,000 that will be paid to Hull City FC is considered to be an advance on the Premier League payment that local clubs are looking forward to. This payment is due to all clubs at the end of the football season.
Over and above that, teams participating in the Championship may also apply for interest-free loans of up to £584,000 while the Covid-19 infection rate continues to soar. One would need to win many online bingo in Australia games to match those figures!
This all sounds very promising at face value. However, according to studies conducted by football finance expert and University of Liverpool lecturer Kieran Maguire, Hull City is in jeopardy of using up their funds in a matter of just 20.4 days.
Maguire recently posted his findings to his personal Twitter account, warning clubs that the cash aid might not last them as long as they think. He noted in his post that based on clubs’ most recent wage levels, it won’t take long for Championship teams to use up their EFL grants and advances.
Stroke City at Largest Risk
The lecturer’s data shows that the club in danger of running out of money the fastest is Stroke City, with Hull City FC not far behind on the list. Maguire has estimated that the Potters will take a mere 9 days to consume their funds, followed by Fulham at 9.3 days and Swansea City at 10 days.
The club that could theoretically stretch their grants the furthest is Barnsley. According to Maguire, the club would take roughly 47.7 days, or 7 weeks, to plough through their reserves.
Essentially, Maguire’s findings have shown that only 2 clubs in the division – Charlton and the Reds – would be able to subsist on their advances for longer than a month.
Hull City are just 2 points above Championship relegation spots and are currently experiencing a difficult run on 2 points from a possible 33. The club has not won since New Year’s Day, and will not get the opportunity to do so until the risk from the Coronavirus is under control.