Shrewsbury MP backs new Football Finance Authority plan to save clubs and finish League One season
Shrewsbury MP Daniel Kawczynski has backed a new finance plan to help save the futures of Football League clubs.
Damian Collins MP this morning penned a letter to the cabinet, Football Association and English Football League underlining his fears that lower league clubs could go to the wall within weeks if provided with no financial assistance.
The letter states "we want to see football return as soon as possible and for the current seasons to be completed above League Two" – something Shrewsbury Town as a club are against, having made clear their stance on voting to curtail the season due to safety and costs.
The MP's letter outlines a six-point "rescue package" to "save professional football in this country as we know it," warning the Covid-19 pandemic has "badly exposed weak financial positions" of EFL clubs.
The plan, in the long-term, would allow supporters and communities the opportunity to acquire stakes in clubs who have required bailout from a new Football Finance Authority (FFA).
The draft proposes the FFA is launched by the FA but backed financially from the Government.
Funds would be provided by the FFA to clubs in need, to provide enough "breathing space" but must not be used for player recruitment or to add infrastructure. The funds would come in exchange of minority shareholding of between 10 and 49 per cent – depending on each scenario and club.
Independent directors would be appointed as minority shareholding representatives, they can be nominated by supporter trusts or local government but must pass a new FFA fit and proper test.
Directors have access to finances and report back to the FFA. Clubs that do not adhere to the ruling will be placed in a "form of administration" by the new body, where a credible plan to bring the finances back in line will be drawn up.
The letter states that recognised supporters trusts or local authorities can acquire FFA shareholding at a discounted market value, returned to the government to repay the investment.
The FFA would be responsible for the EFL's financial rulings, and the new body would consist of representatives from the EFL, the Professional Players' Association, the Football Supporters' Association and clubs themselves, but with an independent majority.
The letter, directed to Secretary of State for Digital, Culture, Media and Sport Oliver Dowden, FA boss Greg Clarke and EFL chief Rick Parry, is signed by Collins, and several other names including chairman of the Football Supporters' Association Dr Malcolm Clarke, former chairman of the FA The Lord Triesman, as well as Greg Dyke, who also held the role.
Charlie Methven, co-owner of Sunderland, is also included while Shrewsbury Conservative MP Kawczynski is joined by 11 other football club MPs.
