Anxious National League clubs are waiting to hear the full details of the conditions attached to the next tranche of government funding after being told the money will arrive as loans rather than grants.
A letter circulated to the 66 member clubs explained the £11 million allocated to support the National League playing behind closed doors, via the £300m Winter Survival Package and administered by Sport England, will be by loans, with grants available in exceptional circumstances.
The first three months of the season – October, November and December – were funded through the National Lottery's promotional fund after league chiefs and the FA struck a £10m rescue deal with the government.
The terms of the upcoming tranche of loans have not yet been revealed and they are crucial in whether the 2020/21 season will continue.
The National League's interim general manager Mark Ives, who is now steering Steps 1 and 2 following the sudden resignation of chief executive Michael Tattersall last month, will hold six meetings with clubs tomorrow to update them on the funding.
Many clubs are resistant to taking on loans and for the likes of Hereford and Chester, it goes against their articles of association.
A number of clubs would not have started the season in October had they been offered loans and it was the National League's understanding the funding would be in the form of grants.
However, a DCMS spokesperson told The Athletic: “It is incorrect to suggest funding was ever promised as grants. Clubs in scope will be assessed for support on the same criteria as other professional clubs.”
Wealdstone chairman Rory Fitzgerald says clubs were under the impression kicking off the season would present a risk further down the line should crowds not return.
“They [The National League] gave us all the assurances you would expect before the season,” he told The NLP. “The way it was portrayed or certainly my interpretation of it, was if fans were allowed back in they would look at the funding and revise it accordingly. If not, it would continue in the same sort of structure. To be told now we need to loan the money, it doesn't sit with me. I feel we have been misled.
“I don't see how we can continue on a loan basis. Maybe if it's in the structure of a student loan, once you've got X amount of revenue or X amount of profit you start paying back. If it's ‘we'll led you X amount and you have to pay it back' that's just not going to work for us.
“It's a dreadful position to be in and one we shouldn't have been put in. It will be interesting to hear exactly what the proposal is and how it works.”
King's Lynn Town chairman Stephen Cleeve, whose club were allowed one game with limited spectators before another national lockdown was introduced, believes the government must look at the bigger picture and admits he can't see the majority clubs wanting to continue the season with loans.
“In reality it's going to be split into two camps – those who want to continue the season and those who don't,” Cleeve said.
“For the vast majority of clubs, if you haven't got much to play for and you haven't got the means financially to compete, you're not going to want to borrow – in our case – the best part of £400,000 to complete until the end of the season when it was promised it to us in a different way.
“So I think there are going to be those who will fight tooth and nail to carry on – and that's not a wrong position, that's right for them – and there are others, like myself, thinking, ‘Well, hang on. I make my money renting properties out. That's gone to zero so I've got no other income and what you're asking me to do is borrow or find £400,000 to stay in this league'.
“But the big point I'd make on it, and the bit everyone is missing, is there is no joined-up thinking.
“If the government say it is a loan, my guess is the league will stop. Because everyone is going to have to borrow money and no one is going to want to do that. I can't see it continuing. That is going to have repercussions for sponsorship.
“If the government refuse to give it as grants, let's take King's Lynn Town Football Club as an example. We've probably got around 30 people on our payroll. We'll have to furlough everyone and the net result is the government is going to lose money from us and be paying it one way or another. The only way they're not going to pay it is if people like me find the money and carry on.
“We are stuck. The Premier League and Football League aren't going to give us the money, and I don't see why they should. The government promised, they are the ones who made the rules and stopped us trading and have shut the grounds down.
“They've given over £1bn to the Arts, we're asking for £11m over three months.
“The arts have all just closed businesses down and furloughed staff anyway. We're in that unique spot where we've got no income but we have to continue. That's why it's a different scenario to everyone else. I think it's a short-termism attitude, penny-wise and pound poor.”
Cleeve believes it is crucial clubs unite quickly and lobby their MPs to attempt to change the position.
“I don't think the blame game does anyone any favours,” he said. “The government does need to take a broader view and understanding that if the league doesn't continue is the result will be furloughed players.”
Eastbourne Borough chairman David Blackmore has already written to Eastbourne MP Caroline Ansell seeking support for the club amid similar fears for the National League South club.
“To incur debts of tens of thousands of pounds would be unthinkable,” Borough chairman David Blackmore told The Eastbourne Herald today, “and it would put the very future of Eastbourne Borough in jeopardy.
“It was actually touch and go when we opened the current season, at Dorking Wanderers on October 3rd. We had only just, hours before, had the confirmation of the monthly grant, funded by the National Lottery. As soon as we kicked a ball, we activated our players' contracts for the season.
“The club had every indication that, if crowds had not returned after the first three months, the financial support would be extended. In common with all of our league, we currently have no significant income week by week – and we are suddenly expected to play the second half of our season accumulating debts.”
