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Just want to point out a few things about the whole furloughing at RSL club that casual observers might not automatically take into accounts. Many other factors in play. Thread:
Factor 1: The unknown. How long is MLS season going to be on haitus? If it were known to only be 2-3 months my guess is all employees be kept on hand...
... but if it's longer, how long? If I were to guess right now I bet the MLS 2020 season is not coming back this year at all - a real possibility.
Factor 2: Big losses. If the future is uncertain the biz HAS to plan for the worst. What if the 2020 season is cancelled. What happens to the club financially? ...
... The answer is it take a HUGE financial loss, a loss in the 10s of millions of dollars. Any business would be wise to cut back wherever possible. ...
... Unfortunately one of these easiest ways to cutback is personel. You can't uproot a building and give it back to the bank and say nevermind, I don't want this mortgage. ...
... Expenses will continue to occer, and losses will mount, and they will be huge because the loss of $26M in annual revenue is nothing to sneeze at.
Factor 3: No Fed Support for big biz. Unlike small biz, large biz wont be getting loans or grants from Fed Gov to keep or maintain payroll to wade through uncertain times. ...
... If they were to get grants they could keep employees to wait and see if the market comes back. Without it they brace for the worst - a cancelled season.
Factor 4: Sooner is better than later for furloughed employees? Why? When one door closes another door opens. Some businesses are booming right now due to the shut down ...
... These businesses are in a hiring boom, which wont last forever. In a few those jobs will be taken, leaving those furloughed later without options.
Factor 5: Increased unemployment benefit options. Even when you're organization is set to take 8-figure losses you still have the welfare of furloughed employees in mind. ...
... What amount of benefits will they get & how long will they last? If the market returns will we be able to rehire them? What does the current job market look like? ...
... Steps are in process to increase unemployment benefit to nearly 85% of what their full employment was, remove work search requirements, & extend benefits up to 52 weeks. ...
... In all that gives good assurance to the employers that their employees will be taken care of in unemployment, & they hold out hope they can all return sooner than later.
Summation: We don't know all that goes into decision making process. What has happened at RSL has been repeated a hundred times over by nearly every team and every sport ...
... The risk of the unknown, inevitable big losses, & the assurances & assistance from the Fed Gov for benefits for the unemployed make layoffs a nearly inevitable conclusion ...
... Lastly I for one am grateful DLH has invested in our teams & community. I dont know him personally, but I realize that without him I dont have local pro soccer to watch. FIN.
