The furlough poll has closed. Overwhelming response against LFC's decision. Here's a few numbers for you... https://twitter.com/MoChatra/status/1246719923767869442
Based on the scheme as it's currently set up (initially established for three months), and if information from some journalists - that approximately half of the club's non-playing staff will be subject to furlough - is accurate, club stands to benefit by between £1.0m and £2.5m.
In the previous financial year, club made a cash operating profit (EBITDA) of £124m and over the last three or so years will have spent in the region of £90m on agents' fees. At end of 2018/19, it also had £37m in the bank.
For current season, revenue, accounting and cash operating profit will be broadly in line with 18/19; point being that club's financial position has been very healthy. Given these numbers, really difficult to understand why club has to resort to accessing scheme so soon.
Scheme was set up to support businesses to get through these hard times who might otherwise struggle to get through this- many SMEs whose cashflow is tight and only a few weeks' worth of loss of revenue can put them under - were intended beneficiaries.
Sure, there are businesses who are financially stronger than LFC who have also taken advantage of this scheme- but it doesn't make it right for LFC to do the same. I thought its values and principles meant something- or is 'this means more' just an empty marketing slogan?
Granted, there might be financial circumstances that have caused LFC to try and take advantage of the scheme barely a couple of weeks after it launched- if so, then that should be cause for significant concern.
If this was meant for all businesses, then government would have announced blanket support for every business operating in the UK irrespective of size and financial standing. That is why taking advantage of this scheme has been met with negativity. LFC- do the right thing.
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