Portsmouth team up with Sunderland and Ipswich to 'maximise' bailout package opportunities

Speaking at the latest meeting of the Tony Goodall Fans Conference, the Blues’ chief operating officer, Tony Brown, revealed the club was specifically arguing its case against conditions associated with the final tranche of funds to be made available in the £50m rescue package.

League One outfits can apply for hand-outs from a £20m 'monitored grant' fund which will be based on need.

Those clubs who apply for assistance will be required to demonstrate that without the injection of extra money – which could be up to £1m – they would be in danger of going out of business.

SEE ALSO: Catlin's concerns over how bailout could hamper Portsmouth

But there are constraints associated with access to that pot of cash, notably restrictions to transfer and salary spending.

Brown said such rules might not prove overly restrictive because of existing salary cap and squad size regulations that were agreed by League One and League Two clubs in August.

But with Pompey looking at a £5-6m loss because of the coronavirus pandemic, he told those taking part in the December 8 fans conference the that Blues ‘wanted a good deal with the EFL’.

According to released minutes from the meeting, the question ‘How will the EFL bailout affect Portsmouth?’ was put forward.

In response, Brown said: The club is looking at a potential loss of income of £5-6m, so it is a welcome package.

‘There are some limitations attached to the final tranche which restrict transfer and salary spending.

‘We are arguing our case against this, with Sunderland and Ipswich also involved. We are trying to maximise what we can get out of it.

‘The bailout is not enough to clear losses. We will offset a little by having fans in, but didn’t make much money on Saturday (December 5, when 2,000 fans were allowed in for the visit of Peterborough).

‘We have tried to tighten our belt in all areas of business and be as cost effective as possible, and so want a good deal with the EFL.’

When asked ‘Is it a good idea for Portsmouth to sign up to spending restrictions?, Brown added: ‘It may not be a bad thing for the club.

If we are not spending as much over the next 18 months because of the salary cap then we may not find the rules overly restrictive.

‘We will evaluate what’s in the best interest of the club and act accordingly, whether that means taking the extra tranche of money or not.’

The Premier League and EFL reached agreement over the £50m League One and Two coronavirus relief package at the start of December.

Each club in the third tier will receive a minimum payment of £375,000, with no strings attached, with a further £15m distributed according to a lost gate revenue share calculation.

The £20m ‘monitored grant’ fund forms the remainder of the package.

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