'Don't just kick the problem down the street' - Doncaster Rovers chief urges caution over clubs' bail-out options

Doncaster Rovers chief executive Gavin Baldwin insists EFL clubs must guard against accepting quick fix options of financial assistance from outside parties.
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The EFL are involved in on-going talks with the government, Premier League and other bodies over potential rescue packages to help clubs deal with a reported £250million shortfall in revenue since the start of the Covid-19 pandemic.

Baldwin says a bailout will be vital to ensure some lower league clubs are still operational beyond the end of this month.

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But he warned that clubs must not only think of the short term as they approach negotiations.

EFLEFL
EFL

“We’re aware that conversations are on-going with the Premier League and they would hope they would conclude in the next few weeks, he told the Free Press

“Also, they’re looking at alternative options - maybe the Bank of England, commercial loans and what is described as other options.

“It may be that one of the options crosses the line or a cocktail of those may cross the line.

“We know it could take the form of loans and/or grants.

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“Although a lot of clubs need these rescue monies in October because they have payroll this month, they need to make sure they take the best deal and not the first deal.

“If the first deal is all loans, that’s just kicking the problem down the street.

“The best combination would be grants so clubs can still be there for fans going forward, and then loans almost as the last resort.

“We genuinely have lost, as the EFL have said, £250million of ticket revenue.

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“There is the government option, the Premier League option, the Bank of England and others, and we are assured that we should have a solution in the next couple of weeks.

“What that solution will be, no one can commit to at this stage.”

In a survey carried out by Sky Sports, six League One clubs stated they were not confident they would be able to complete the current season without a bailout.

That is not the case with Rovers but Baldwin confirmed they will be looking to take advantage of any grants, should they become available, in order to secure the long-term future of the club.

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He said: “Obviously, we’d want to look at grants. The loans, we’d have to view with more detail because we wouldn’t want to set ourselves up for problems in the future.

“We’re equally aware that the Department for Culture, Media and Sport have been asked to look at VAT so we could enjoy the same benefits as other sectors.

“And they’re also talking to HMRC about deferred payments on PAYE. That would help but it could be creating a problem for the future.

“But if it would help the sector, why do we not benefit from it when others do?

“Hopefully we’ll get the opportunity.”

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A report in The Times suggested the Premier League is only willing to offer a grant of a combined £50million for EFL clubs, with £100million available as a loan with interest rates similar to those charged by banks.

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