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Liverpool perform major U-turn on government furlough scheme

Liverpool have announced that they have decided they will not in fact be making use of the government’s furlough scheme during the coronavirus crisis.

The Reds came under huge criticism for recently choosing to rely on government money to pay 80% of their wages to non-playing staff.

Football clubs have financial resources that would be the envy of many businesses, and it certainly seems unnecessary for them to be relying on the taxpayer to bail them out when they can continue to fork out enormous wages to the footballers in their squad.

MORE: Liverpool assured they’re set to be crowned Premier League champions “one way or another”

Still, credit to the Merseyside giants for recognising the error in their ways, and credit too to those who have no doubt played their part by pressuring the club into this turnaround.

Liverpool have announced their decision on their official site today with CEO Peter Moore admitting the club got it wrong and have now committed to paying staff themselves, as Manchester United have also announced they’ll be doing.

See Moore’s statement in full below:

Dear Liverpool supporters,

First and foremost on behalf of our ownership, Fenway Sports Group, we would like to emphasise the thoughts and concerns of everyone are with those suffering from the dreadful COVID-19 pandemic and the families of those affected.

We would also recognise and pay tribute to the heroism of the incredible health service and key workers locally, nationally and internationally. All other worries should be placed in that context first.

Allowing for perspective in these unprecedented and harrowing times, it is important to address an issue we, as an organisation, have been involved in since the weekend.

We have consulted with a range of key stakeholders as part of a process aimed at achieving the best possible outcome for all concerned. A range of possible scenarios were considered, including but not restricted to: applying to the Coronavirus Job Retention Scheme, which pays 80 per cent of salary and guaranteeing the 20 per cent payment; applying to the Coronavirus Job Retention Scheme with a guarantee to reimburse monies received at a later date; and, thirdly, finding an alternative means to cover our furlough costs.

It is as a direct result of this extensive consultation and our own internal deliberations at various levels throughout the club that we have opted to find alternative means despite our eligibility to apply for the Coronavirus Job Retention Scheme.

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. 

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.   

We would like to acknowledge the great army of staff and casual workers who work tirelessly to ensure Liverpool is a club that operates to the highest of standards. 

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.

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.

We would also like to take the opportunity to thank those who have engaged with us in a productive fashion, none more so than our supporters, their representatives, particularly Spirit of Shankly, the Mayor of Liverpool, Joe Anderson, Metro Mayor, Steve Rotheram, local MPs Dan Carden and many other individuals, with whom we have had much valued dialogue. 

Stay safe.
Peter Moore
Chief executive officer