Majority of the 24 championship clubs have requested assistance from the EFL loan scheme to pay tax officials
Most championship clubs will benefit from the new £ 117.5 million loan program set up by the EFL, Sportsmail can reveal.
The second tier teams have been badly affected by the coronavirus, which has left fans at most clubs unable to attend matches for over a year as matchday revenues make up a significant portion of their earnings.
And while there has been some financial relief for teams in League One and Two, championship clubs have had no support so far.
More than 14 of the 24 clubs have taken advantage of the scheme, announced by the EFL on Monday, and they want the money to start flowing as quickly as possible.
QPR has described their relief when they finally got some financial help in the pandemic
The loans, up to a maximum of £ 8.3 million per club, will allow them to pay their PAYE tax bills, which will be due shortly.
“We are under such cash flow pressure that it is ridiculous,” said Lee Hoos, CEO of Queen’s Park Rangers.
‘It’s a relief [to have the loan scheme agreed]The only thing we’ve seen increase is streaming, but it’s nowhere near enough. ‘
Hoos said that while costs have come down during lockdown, every game in the club stage suffers a further loss.
QPR estimates they’ve lost around £ 5.5m in gate revenue, but the aggregate losses will be much greater as sponsorships and sales have also disappeared. In the meantime, the tax bill is on the rise.
QPR director Lee Hoos said Sportsmail that the loans will take some pressure off
On average, a championship match earns £ 47,000 in gross revenue via streaming.
“Player salaries are our biggest expense and payroll tax payments come second,” added Hoos. “We will be able to access the loan as soon as possible and we hope it will come quite soon.”
Owners across the league have kept clubs going, “but there’s only so much in the tank they can miss and it’s the same at every club,” Hoos said.
The EFL struck a deal with the Premier League in December to provide support for lower-tier clubs, after months of criticism that it was taking too long to provide assistance.
QPR was one of the clubs that allowed up to 2,000 fans to attend a handful of matches last year
Support to the championship would come in the form of a £ 200 million loan to pay off impending tax debts, and that has taken until now to be completed.
The top flight agreed to pay £ 15 million to cover the cost of the loan so that cash could be provided interest-free to clubs.
Initially, the EFL turned to the government and requested access to the Covid Corporate Financing Facility scheme.
Arsenal received a £ 120 million loan and Tottenham Hotspur £ 175 million through the scheme and the Football Association also received support. However, the EFL was unsuccessful due to credit restrictions.
But the competition is partnering with the American institution MetLife.
Arsenal were one of the clubs to take advantage of the government’s Covid loan facility
The loans are capped at £ 8.33 million per club and the money is due to be repaid in June 2024 from Premier League solidarity payments or through top flight or EFL funding.
The completion of the loan arrangement can be a relief for clubs and the government.
Tax liabilities have increased as clubs have been without income for longer, while many have provided extensive support to their local communities during the pandemic.
HMRC has given companies, including football clubs, breathing space. However, if it had intervened to enforce payment of tax debts, it could have pushed clubs to the brink, said Kieran Maguire, a lecturer and financial expert at the University of Liverpool.
“Does HMRC want to be so ruthless?” he said. From a PR perspective it would be disastrous.
QPR has generated some revenue through streaming matches, but it is much less than port receipts
‘Clubs played without money last year. HMRC has to play this very carefully.
‘This reduces the risk. This allows clubs to ensure that they comply with the law.
In December it was agreed that clubs in League One and Two would receive immediate support from a £ 30 million grant to be paid from the Premier League.
In addition, an additional £ 20 million of ‘controlled grant’ was available to clubs on a need-by-need basis, with a joint EFL and Premier League panel to determine eligibility.