'50 or 60 clubs' - Birmingham City's Championship rivals warn of financial disaster
Birmingham City news | Phil Hodgkinson has warned the game will be destroyed unless it starts to plan for the financial impact of Covid-19
by James Rushton, Connor O’Neill, https://www.birminghammail.co.uk/authors/james-rushton/Huddersfield Town owner Phil Hodgkinson has warned that “50 or 60 clubs” could go bust unless football starts to plan for the financial impact of Covid-19 beyond the 2019/20 season.
England's second-tier remains hopeful of returning to action, with players set to return for training in small groups today, as seen with the Premier League last week.
With nine matches left to be played by each club, there remains a strong desire from Championship clubs to ensure the season is completed.
However, all those remaining games are likely to be played behind closed doors, while the idea of playing the whole 2020/21 season without fans being in attendance is also being mooted.
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And Hodgkinson, chief of Birmingham City 's Championship competition in Huddersfield believes that should that be correct, then as many as "50 or 60" clubs could go bust as a result.
"The problem is not whether we finish [this] season or not, it is what happens after that," he told BBC Sport.
Before adding: "If we don't come to an agreement there will be no football pyramid. There are clubs I know of that are only still trading because they are deferring wages and [tax] and other creditors. They will need paying at some point.
"There is an absolutely real, stark probability that if something isn't agreed now within football to ensure all clubs can pay their bills and get through to the point where income is resumed, you will be looking at 50 or 60 clubs ceasing to exist. Genuinely, I am talking about that many."
Hodgkinson says Huddersfield wants the season to restart "when it is safe", but believes the game "is not looking at the bigger picture".
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He said: "It will cost each club between £150,000 and £200,000 for testing to get to the end of the season," he said. "But what happens after that?
"We have been told by the government that there will be no large gatherings until there is a vaccine and that is likely to be in 2021. That means football clubs will lose a vast proportion of their income outside of any broadcast money, which is likely to be significantly reduced or clawed back anyway.
"In normal revenue, we are looking at losing between £7m and £10m. The claw-back for TV is going to be £10m-£30m. That is just us. So, what is football going to do to ensure the entire pyramid survives this? The discussion is being avoided. For the next three, six or 12 months clubs are going to have no income."
Before the former Southport chief concluded by claiming that reducing players' wages at every level of the game could be a solution moving forward.
"The players are not to blame," he said. "But the reality is, the players have to be part of the solution because if clubs go bust, their contracts won't get met anyway.
"They may not like me saying this, but [players' union] the PFA need to put in place salary cuts of between 30% and 50% for all players at all levels until such a time as crowds are allowed back into football stadiums and income streams return.
"These are ideas. They may not be the right ones. But something has to be done because everyone knows what is coming and people are just sticking their heads in the sand."