Coronavirus pandemic: Top EPL clubs 'could go bust' if players' pay not cut

The Premier League has given its strongest indication yet that players will have to take pay cuts because of the coronavirus pandemic, otherwise, as one chair warned, "clubs could go bust".

Several clubs are privately suggesting that wage deferrals are inevitable, even in the top flight. The chair, speaking on condition of anonymity, admitted he feared problems with cash flow and that the delay in "ladder payments" - from where they finish in the league - would cause significant pressure on finances, even in the Premier League.

His club intend to propose that players who earn more than £15,000 a week should agree to a 50% reduction in wages to be repaid over a 12-month period, but first he wants to hear the Premier League's ideas.

Another Premier League club has suggested that 50% deferrals will be needed but the expectation is that the agreement would have to be much lower - probably less than 20% - to be pushed through.

Though cuts will be the next step, players can be placed on furlough under the government's coronavirus job protection scheme - where they remain on the payroll but cannot work and are not paid.

Clubs would be eligible to claim 80% of an employee's salary up to £2,500 per month from the state and a number of English Football League sides are exploring this option. The players would be allowed to train, as the treasury does not regard that as their primary work.

The Professional Footballers' Association, the players' union, met the Premier League, represented by director of football Richard Garlick, and the EFL yesterday to discuss the likelihood of player wage deferrals. It is hoped that a proposal will be communicated to the Premier League clubs ahead of next Friday's shareholders' meeting, to be held by conference call.

Difficult decisions

In a joint statement, the organisations said: "The Premier League, EFL and PFA agreed that difficult decisions will have to be taken in order to mitigate the economic impact of the current suspension of professional football in England, and agreed to work together to arrive at shared solutions.

"The leagues will not recommence until April 30 at the earliest. They will only do so when it is safe and conditions allow.

"Further meetings will take place next week with a view to formulating a joint plan to deal with the difficult circumstances facing the leagues, their clubs, players, staff and fans."

Unified front

There is a desire for the Premier League to come up with a proposal that can be agreed by all clubs, to present a unified front.

The warning that even Premier League clubs may go bust may come as a surprise, but outside the top six and a handful of others, finances are tight. There is a widespread acknowledgement that a number of EFL clubs will go into administration.

Premier League clubs are also struggling to work out their budgets and cash flows with, for example, season-ticket sales on hold for many and uncertainty about whether they would receive the amount they expected from broadcast deals.