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Coronavirus latest: Sports bosses warn of financial implications of pandemic

:Headline: Coronavirus latest: Sports bosses warn of financial implications of pandemic: ID:398502: from db_amp
Rick Parry, Tom Harrison, Bill Sweeney, Dame Katherine Grainger and Tim Hollingsworth all gave evidence to the DCMS committee.

Sports bosses have outlined the potential for huge financial losses due to the coronavirus pandemic in evidence given to the Digital, Culture, Media and Sport committee on Tuesday.

English Football League chairman Rick Parry, England and Wales Cricket Board chief executive Tom Harrison and Rugby Football Union chief executive Bill Sweeney were among those questioned by MPs.

Parry has warned EFL clubs face a £200million financial hole by September while Harrison said the impact of the pandemic could cost the ECB £380m.

Sweeney revealed the RFU, which has already lost £15m due to the crisis, will lose a total of £107million if the autumn internationals are cancelled.

Asked in a worst-case scenario how many EFL clubs might go out of business, Parry said: "That's a difficult one to answer.

"We are heading for a financial hole of about £200m by the end of September, cash hole, that we will need to fill. Clubs are stacking up creditors as well.

EFL chairman Rick Parry giving evidence (PA)

"We have a great deal of uncertainty around next season of course, the great undetermined matter being when we're going to return to play in front of crowds, which for the EFL is absolutely critical.

"We're much more dependent on revenue – and indeed much more dependent on the atmosphere generated by crowds potentially than the Premier League."

Parry also said the EFL expected three clubs to be promoted from the Championship to the Premier League, or "the lawyers are going to get wealthy".

There have been reports that top-flight clubs want to play out the season with the threat of relegation removed, but Parry said it would get very "messy" if that happened and warned it would be a breach of the tripartite agreement between the Premier League, the EFL and the Football Association.

"We expect three Championship clubs to be promoted – the Premier League are aware of our position on that. The Premier League expects three clubs to be relegated," he said.

Asked what would happen if the Premier League's position changed, Parry said: "The lawyers are going to get wealthy if that happens. There would be a degree of outrage from a number of clubs in our Championship, and it would be a breach of the tripartite agreement.

"The safe answer is that it would get very messy. Our expectation is there would be three clubs promoted from the Championship."

ECB chief executive Tom Harrison speaking to the DCMS committee on Tuesday (PA)

There will be no professional cricket before July but England are still due to play the West Indies and Pakistan this summer.

ECB chief executive Harrison is hopeful of fitting in a "significant" number of Test matches yet he is also wary of a "worst-case scenario".

"We are still working out the impact of Covid-19," he said. "We anticipate with no cricket this year a worst-case scenario could be as bad as £380million.

"That would be the loss of 800 days of cricket across all of our professional clubs and the ECB. That is the worst-case scenario for us this year."

"With a following wind hopefully will be able to play a significant number of Test matches this summer which will helps us mitigate those financial losses that we are facing at the moment."

RFU chief executive Sweeney says the governing body will lose £107million if the autumn internationals in November are cancelled.

He said: "If the autumn internationals go ahead in November, which are key for us, we will still lose £32million in revenue.

Bill Sweeney outlined the problems faced by the RFU (PA)

"If they go ahead but behind closed doors that is a negative impact of £85m and if they are cancelled entirely that will be £107m on top of the £15m we have already lost.

"So it is a very significant loss of revenue and we are doing what we can to mitigate it."

Asked what the impact would be if rugby was not able to restart until 2021, Sweeney did not skirt around the issue.

"That would be catastrophic, 85 per cent of our income comes form hosting men's international games at Twickenham," he said.

"Twickenham is a major asset for us. When you own a stadium it is a major cost and at the same time brings in large revenue.

"If this was to be prolonged and the Six Nations games were impacted, then it would be a catastrophic impact on rugby union in England. We would be looking at some very severe situations."

Sport England chief executive Tim Hollingsworth said his organisation's Community Emergency Fund for grassroots clubs hit by effects of the Covid-19 outbreak was oversubscribed.

Tim Hollingsworth was also questioned by MPs on Tuesday (PA)

"We would expect 4,000 applications in a year – over the last five weeks we have had 7,500 applications," he told the DCMS committee.

"That tells the story of how clubs are in need of that support."

Hollingsworth referenced Sport England's most recent Active Lives survey, which showed in the 12 months up to November 2019 that more adults in England than ever were considered active against the Chief Medical Officer's guidelines.

He said it was encouraging to see from weekly surveys conducted since the crisis began that activity levels were being maintained, but was concerned that inequalities spotted in the earlier survey may worsen in the pandemic.

"We are seeing people realise the importance of activity to their physical and mental well-being, but we have seen those inequalities maintained and starting to worsen."

Hollingsworth says the lack of activity among those in the less affluent socio-economic groups, and among children, were the biggest concerns.

Elite sports funding body UK Sport is looking for an "early and exceptional rollover" of money from the Government to protect national governing bodies from Olympic and Paralympic sports, Dame Katherine Grainger told the committee.

Dame Katherine Grainger wants to protect national governing bodies from Olympic and Paralympic sports (PA)

Grainger said the rollover, which would include a Government underwrite to cover any drop-off in National Lottery funding, would "reassure all sports that funding is in place".

The current funding cycle ends in March next year, and Grainger is looking for a rollover until March 2022.

Giving the governing bodies that reassurance would mean they would not "need to make decisions which could be disastrous for sport".

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