Governing bodies working together to help clubs in need of financial support as football faces 'economic crisis'

It's been reported that League One and Two clubs are facing a combined 50m shortfall if the football season doesn't resume by the summer.

The FA's chief executive, Mark Bullingham, says the Football Association is in constant discussion with the EFL, Premier League and the government to seek ways of helping clubs who risk financial oblivion during the postponement of the 2019-20 season.

Games are currently suspended until April 3 due to the ongoing coronavirus pandemic, however a resumption on that date appears unlikely given the extent of the crisis facing sport.

It was reported by the Telegraph that clubs in League One and Two are facing a combined £50m 'black hole' if the season does not resume before the summer due to the loss of gate receipts, sponsorship payments and season ticket sales for next season.

Northampton CEO James Whiting admitted all clubs face financial challenges during this unprecedented period but he reassured fans that the owners will plug any shortfall in cash until normality returns.

But there are many other clubs across the lower leagues that will struggle to make it to the summer, as shown by Barnet who have already placed all non-playing staff on notice in 'emergency measures to preserve the club'.

Speaking after the teleconference of all Europe’s national football associations with Uefa, at which the decision was taken to postpone this summer’s European Championship, Bullingham said: “There are some clubs, particularly at the lower end of the pyramid, that are going to struggle.

"We are having lots of conversations with both government and other football stakeholders about that. From our point of view, we’re a not-for-profit organisation, clearly the money we raise goes back into the game, we are definitely going to take a big financial hit, and we will therefore be able to put less back into the game at all levels.”

After chancellor Rishi Sunak announced a £330bn loan guarantee package for British businesses, Bullingham said the government was acknowledging the shock also being experienced by football.

He added: “There are regular conversations going on; this is one of many different topics on the agenda obviously, but it’s also a big topic for government.

“Government have repeatedly asked us to keep them informed of clubs that are having financial difficulties. It’s an issue for government and the football family. I can’t go into any more details at the moment.”

Jonas Baer-Hoffman, general secretary of Fifpro, the international players’ union, warned that things could 'turn ugly' and football is facing an 'economic crisis' with huge layoffs and insolvencies very quickly if a solution is not found.