English football offered life-saving £250m loan by American pension fund with no Government bailout
ENGLISH football has now been offered a life-saving £250million loan by an AMERICAN pension fund.
It comes after Sports Minister Nigel Huddleston yesterday announced there would be no Government bailout for our game.
EFL chairman Rick Parry said clubs will need up to £250m to survive the pandemic-hit season without fans.
Rotherham chief Tony Stewart warned: “A lot of clubs in League One and League Two — even the Championship — will go into administration if no money is forthcoming.”
The US proposal would see Premier League sides pay the interest on the debt, which would be paid back over a number of years by EFL clubs.
It was revealed by former top agent turned football finance expert Jon Smith. He said: “EFL teams have a financial hurricane that will blow their way by the end of the transfer window.
“By November, there are probably ten clubs that won’t exist unless they get help. What I and a few people have proposed, is that the funds I represent are prepared to put in the £200m and some the EFL needs, with interest paid by the Premier League.
‘Not money-laundering funds’
“They are American pension funds, proper people — not money-laundering funds.”
Smith insisted future EFL TV income would pay back the capital sum.
He told talkSPORT he had “entered discussions” with the Prem, although League sources suggested that there were no ongoing talks.
Top-flight teams are reluctant to hand over bailout cash to the EFL without guarantees on how it would be spent.
Most read in Football
And Prem clubs were hardened by what was described privately as the “unhelpful” intervention by Huddleston.
He told MPs: “We will expect the top tiers of professional sport to look at ways it can support itself with the Government focusing on those most in need.”
Clubs have accused the Government of ignoring their pleas for stronger efforts to get fans back inside grounds — after plans to begin a staged reopening from October 1 were placed on hold.
One Prem chief said: “We have done a lot for the Government — but we don’t know what they have done for us.
“We have come up with lots of great ideas on health, safety and testing and been ignored.”
Huddleston admitted the ban on fans “will have economic consequences.”
Rotherham chairman Stewart added: “The Government, Premier League and EFL need to realise the dire consequences.
“They know the disaster that is waiting to happen — but still nothing is forthcoming.”