‘It would put the future of the club in jeopardy’ – National League chairman condemns decision to offer loans rather than grants

Godfrey Poku in action for Hawks during last weekend's home loss to Eastbourne Borough. The Eastbourne chairman now admits he would be putting his club's future 'in jeopardy' if he accepted loans over the next few months. Picture: Neil Marshall.

The 66 clubs across the three divisions are being asked to accept loans, via the Government's £300m Sport Winter Survival Package, rather than the cash handouts they had via the National Lottery in the last three months of last year.

Hawks’ CEO Stuart Munro has said the decision could see the National League season abandoned with clubs refusing to play and instead putting their staffs on furlough.

Eastbourne Borough chairman David Blackmore said accepting loans would put his club’s future in ‘jeopardy.’

‘To incur debts of tens of thousands of pounds would be unthinkable,’ Blackmore said. ‘It would put the very future of Eastbourne Borough in jeopardy.

“Every club at our level faces an annual battle just to make ends meet and balance the books. We have a duty to our employees, to our supporters and to the community, to be responsible and not reckless with our club’s management.

‘It was actually touch and go when we opened the current season, at Dorking Wanderers on October 3. 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.’

Southport director Ian Kyle believes there has been a ‘complete breaking of a promise’ to league clubs.

‘We were told that the season would begin on the basis that we would receive from the National League either grants or we would have fans in,’ he remarked.

“We’re not getting fans in. We had the first three months’ worth of grant, which was fantastic, great, we needed that, but now there’s a massive shift of the goalposts.

‘We are being told that the money is there, but despite the fact that we can’t have fans in, we can’t have it any more in a grant, it has to be taken as a loan.

‘We don’t know the basis of the loan, we don’t know the terms of the loan.

‘We’re being asked to make these decisions for the club – bearing in mind the next payroll is due in under two weeks – as to whether we continue by way of loan.

‘As far as I’m concerned, it’s a complete breaking of a promise by the National League.’

Only last week 12 National League clubs published an open letter asking all parties ‘not to betray the trust’ they had shown in starting the season in October on the basis of promises and presumptions of future funding.

A statement released by Chester, but also signed by 11 other clubs, said: ‘Prior to the commencement of the season, the National League confirmed Government support was in place to compensate clubs for essential revenue lost from fans not returning and said this should provide ‘confidence’ to its members.

‘Chester FC, alongside our National League North counterparts, committed to start this season playing behind doors on this basis.

‘What was clear is that this funding was only intended to support clubs up to the end of December 2020.

‘We have also reminded the National League that when clubs agreed to start playing in October there was no mention of loans, only grants.

‘We are firmly of the opinion that any future Sport England funding must not betray the trust we and fellow clubs placed in a number of parties at that time.’