Funding crisis latest: National League ask for minutes of a key Government meeting last November

The National League has asked for the minutes of a key meeting called by Government last November where it claims assurances were given that it would not have to pay back coronavirus crisis funding.
Hawks take on Eastbourne Borough in the National League South last month. Picture: Neil MarshallHawks take on Eastbourne Borough in the National League South last month. Picture: Neil Marshall
Hawks take on Eastbourne Borough in the National League South last month. Picture: Neil Marshall

The 66 clubs in the National League and the South and North divisions below it are set to vote this week on whether or not to cut the season short, after learning that £11million due to be offered as part of the Government’s Sports Winter Survival Package would be in the form of loans rather than grants.

It is understood each of the three leagues will take separate votes over whether to play on, with a resolution set to be sent to clubs in the first part of this week.

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In correspondence seen by the Press Association news agency, the National League claims it was told at a meeting called by the Department of Digital, Culture, Media and Sport (DCMS) on November 17 that ‘the second tranche of monies for January/February/March 2021 would be on the same principles as the initial tranche ie grants’.

National League clubs were supported through the period between October and December of last year by a Government-brokered commercial deal with the National Lottery which did not involve any repayment.

Hawks, for example, banked £90,000 over the three months – as did most of their South division rivals.

But clubs they are now very concerned about their ability to make ends meet if they have to accept loans.

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Scott Priestnall, the chairman and owner of National League side Yeovil, said: ‘We have consistently asked for minutes of that meeting and it’s strange that DCMS, on such a high-profile meeting where £10million was being handed over effectively, that there aren’t minutes to that meeting.

‘We have asked consistently for these minutes and they haven’t provided them.’

The National League says it has pointed out to DCMS that the cost of curtailment and placing staff on furlough at 66 clubs would be a bigger hit to the taxpayer – £14million – than to pay £11million in grants.

Priestnall says DCMS’s response was that furlough related to ‘a different department’.

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DCMS said in a statement last month: ‘It is untrue to suggest funding to the National League was ever promised as all grants and they have been unable to substantiate this claim.’

Sports minister Nigel Huddleston told the clubs in a letter last week that the loans are ‘extremely low interest’ – 2 per cent with a four-year payment holiday - and ‘on lengthy repayment terms of up to 20 years’.

He has said grants will be available to those in most urgent need of support and added: ‘We will not let clubs go to the wall.’

Priestnall, who revealed his club need £750,000 in order to complete the season, says he will vote to continue the season but expects it to be a close ballot, even in the highest division.

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‘There sits another issue – if there is a small majority that want to continue the league – let’s say 65 per cent – what happens to the 35 per cent who said they didn’t want to play?’ Priestnall said.

‘Do we force them to play, do we force them to take loans, do we tell them they don’t have to play, and if they don’t have to play what happens to their points?’