Chesterfield MP Toby Perkins urges government to 'reconsider' season funding method for National League clubs

Clubs, including the Spireites, have been told that government funding for the rest of the season will come in the form of loans rather than grants, which is different to the first three months of the campaign, causing huge concern and potentially putting the season in doubt.

Here is Mr Perkins’ letter in full...

Dear Mr Dowden,

I have recently been contacted by John Croot, chief executive at Chesterfield Football Club, regarding the financial pressures the club is facing due to the pandemic, and the suggestion that funding to help them cover the January to March period will be provided as a loan rather than a grant.

I am extremely grateful for all the support given to Chesterfield Football Club, and other National Leagues clubs, last year via grant funding. Whilst you will be aware that there was disquiet about the funding methodology used, which remains an unresolved issue, this help has been vital for smaller clubs who rely so heavily on matchday revenue. As I am sure you are aware, matches played behind closed doors also has a knock-on effect on hospitality and sponsorship revenues.

Many clubs made the decision to start the season without fans as they had been reassured that support grants will be made available to compensate for the vital revenues lost from fans not being able to return. The National League is in the unique position of being considered elite so unable to host fans but outside of the EFL so unable to benefit from the EFL scheme. It was precisely this vulnerability that led to the assurance of funds or fans being required before clubs felt confident to start the season.

All the soundings from government were that clubs would have fans in before Christmas. Obviously the pandemic situation has made that impossible, but there is no logic that I can see for funding the league on a different basis during the January lockdown to the September tiers.

Following the announcement that future funding would be in the form of a loan not a grant, they understandably feel misled and let down by the government.

It is possible that if the funding is offered as a loan, not a grant, many clubs will vote to finish the season immediately. This is bad for the fans and the game, but ploughing on with either unsustainable loans or no income will put many clubs at risk of permanent closure, which would be disastrous for communities like mine and be a waste of the grant funding previously provided.

It is also a false economy, because whilst the funding required to finish the season is around £11m, the likely furlough cost to government of all three National League divisions furloughing their staff is likely to be much more. Chesterfield Football Club is vital to my town, in terms of our economy, identity and community projects. I would urge you to reconsider and ensure that future funding is provided as a grant, as previously indicated to the clubs, many of whom have made financial decisions based on this assurance.