Exclusive: FA fear losses reaching £300million from sport grinding to a halt

The Football Association fear losses reaching £300million from sport grinding to a halt during the coronavirus pandemic.

Board members of the governing body met on Thursday where finances dominated the agenda and worst-case scenarios were discussed, with the initial forecast of a £150million impact considered conservative. 

With uncertainty over this season’s FA Cup, England matches and events staged at Wembley, the FA executive team have cut £75million from the annual budget which could continue for four years to offset their deficit.

The different scenarios discussed included no football this season, no football for the rest of 2020 and also next season being impacted by Covid-19 spread and sport being cancelled or pushed back.

"We are continuing to work closely with stakeholders across the game to plan for the return of English football, when it is safe to do so," said an FA spokesperson. "In the meantime, we are taking the appropriate steps to work through different scenarios that The FA could face as a result of the pandemic, and examine the wider effect on English football going forward. 

"As a result, The FA Board has approved a prudent and sensible cut of £75million to our annual spending budget. This will help us to plan for the future and mitigate against any potential losses of revenue which could materialise.

"This is a necessary step that many other companies will also be taking to review their own resource plans. The welfare of our employees will always be our primary concern and we will continue to work tirelessly to provide them with our ongoing support during these unprecedented circumstances." 

FA chief executive Mark Bullingham spoke last month when football closed its doors and told to expect losses exceeding £150million depending on the length of the Government’s measures to tackle the virus. He also announced pay cuts at the governing body with the highest earners taking 30%. 

They have looked at various cost-cutting measures and have considered pushing back to the completion of paying off Wembley, with the £757million project scheduled to be mortgage-free from 2024.

Their flagship competition, the FA Cup, is at the quarter-final stage this season and a decision will be made on this year’s remaining games when a plan is made for the rest of the season in the Premier League and EFL.  

In a letter to the FA Council, chairman Greg Clarke wrote: "Whilst we would all like to see football return in the coming weeks, the health of our communities and the protection of the NHS must remain our priority and we will continue to be led by Government advice as we work together with stakeholders from across the game to assess any potential restart."