A rescue package for EFL clubs is needed in weeks, not months, otherwise there is a danger one or more of the 72 member clubs could go out of business before Christmas, the PA news agency understands.
Talks between the EFL and the Premier League over a bailout are continuing, with clubs in the former competition facing a £200million hole in their finances if the coronavirus pandemic keeps crowds away for the whole of the 2020-21 season.
But sources involved in the talks say an answer is needed urgently to avoid a financial catastrophe, on the day that Macclesfield – until last month members of the league – were wound up.
Sky Bet League Two club Southend have also been granted six weeks by the High Court to settle a debt of £500,000.
The rescue package is the EFL’s major priority at the moment, and it is understood alternatives to a bailout from the Premier League are being looked at.
The EFL has set out what it needs in terms of support, based on lost gate receipts. The Premier League, for its part, is understood to be seeking assurances over how the money will be spent but has been given encouragement by the salary caps in League One and Two as a sign of clubs exercising greater cost controls.
The Premier League released remaining solidarity payments for the 2019-20 season in April, while professional football remained suspended, and is understood to have already advanced half of the money due for 2020-21, with the remaining half set to be paid in January.
The EFL was involved in discussions with Secretary of State for Digital, Culture, Media and Sport Oliver Dowden on Wednesday, and set out the consequences of any delay to the planned return of spectators to sports venues by October 1.
Even with fans returning under the guidelines set out by the Sports Grounds Safety Authority, which limit capacity at between 25 and 35 per cent, EFL clubs would be in dire trouble without the rescue package.
The government is reviewing the October 1 return due to a spike in coronavirus cases across the country. A delay until the start of November – when more information will be available about the impact of schools and universities returning on case numbers – is a possibility, PA understands.
The EFL accepts some matches may have to be played behind closed doors as a result of local lockdowns, even if crowds are generally allowed to return from October 1.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here