Liverpool reverse furlough decision

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Liverpool have announced they will no longer seek financial help from the UK government to pay non-playing staff during the coronavirus pandemic with the furlough scheme.

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Over the weekend Liverpool announced they would take advantage of the furlough scheme from the UK government, which will pay 80 percent of wages of any staff impacted by the coronavirus outbreak. Liverpool had announced that staff not needed over the next few weeks would be paid 80 percent of their wages by the UK government and they would make up the remaining 20 percent as part of the furlough scheme.

That decision by their billionaire American owners the Fenway Sports Group (FSG) enraged Liverpool’s fanbase.

Peter Moore, the chief executive officer of the runaway Premier League leaders, announced on Monday that the decision would be reversed after talks which included supporters groups, the Mayor of Liverpool and FSG.

“We believe we came to the wrong conclusion last week to announce that we intended to apply to the Coronavirus Retention Scheme and furlough staff due to the suspension of the Premier League football calendar, and are truly sorry for that,” Moore said. “Our intentions were, and still are, to ensure the entire workforce is given as much protection as possible from redundancy and/or loss of earnings during this unprecedented period. We are therefore committed to finding alternative ways to operate while there are no football matches being played that ensures we are not applying for the government relief scheme.”

Moore added that Liverpool will be financially impacted by this crisis and they are trying to find ways to offset the loss of revenue due to the season being suspended.

“But in the spirit of transparency we must also be clear, despite the fact we were in a healthy position prior to this crisis, our revenues have been shut off yet our outgoings remain. And like almost every sector of society, there is great uncertainty and concern over our present and future. Like any responsible employer concerned for its workers in the current situation, the club continues to prepare for a range of different scenarios, around when football can return to operating as it did before the pandemic. These scenarios range from best case to worst and everything in between,” Moore continued.

“It is an unavoidable truth that several of these scenarios involve a massive downturn in revenue, with correspondingly unprecedented operating losses. Having these vital financial resources so profoundly impacted would obviously negatively affect our ability to operate as we previously have. We are engaged in the process of exploring all avenues within our scope to limit the inevitable damage. We thank the many amazing people in our club, at all levels, who are committed to helping us do just that, despite the complexity and unpredictability in the world and our industry.”

The backlash against Liverpool’s decision follows plenty of criticism for Newcastle United and Tottenham Hotspur who did the same, as many leading voices believe that the billionaire owners of Premier League clubs should be paying their staff during this unprecedented pandemic instead of getting help from the government.

Many Liverpool’s fans and former players slammed the initial decision so it is good to those concerns have been addressed, as the Reds recorded a pre-tax profit of $51 million last year alone and $153 million profit the year before that.