Hartlepool United to place staff and playing squad on furlough leave as financial challenge laid bare

Players and staff took a 20% pay cut last month and it has now been announced the club will make use of the Government’s job retention scheme.

Pools chief executive Mark Maguire confirmed the news when he spoke to members of the HUFC Fans Forum via video call on Monday.

The club say they are confident of ‘navigating the short term’ with all clubs experiencing a loss of matchday, commercial and hospitality income.

The minutes of the meeting have now been published by Hartlepool United Supporters’ Trust (HUST). The furlough scheme sees the cost of 80% of wages covered, up to £2,500 a month.

The minute’s read: “Despite relegation the club has maintained a business structure more common in the EFL and on the basis of remaining in the National League next season unpopular but necessary decisions were made which will allow navigation through the short term while retaining the longer term position of the club

“Following a wage deferral last month, the club will make use of the Government’s furlough scheme for players and staff while there is no football taking place.

“Through a combination of local grants, we still have the option to draw down of next season’s League money (note this is not additional money), the furlough scheme and other matters the club are looking into we are confident of navigating the short term.

“The longer-term challenge is the main priority, and preparation of budgets for this is in progress.”

The financial challenges facing Pools owner Raj Singh were also laid bare during the meeting.

The minute’s added: “The club is facing both short- and long-term challenges due to the coronavirus outbreak which is affecting both HUFC and the Chairman’s core businesses and as such there have been difficult decisions made.

“MM [ Mark Maguire] acknowledged that good people had lost their jobs and throughout the process have deliberately avoided comment on social media and website updates out of respect of those affected.

“The reality is Mr Singh has invested significantly more than he ever expected and now is the time to bring the cost base down to a level at which he is comfortable moving forward.

“Even with a reduced staff level, losses in the National League are still likely to be significant per season if the club wishes to remain competitive on the pitch.

“League funding is just £82,000 and of this £58,000 is solidarity payment from the Premier League and so a club’s own income is critical.”

All football has been suspended indefinitely with the National League asking clubs to vote on how to end the current campaign and to then decide on promotion and relegation issues.

The Premier League and EFL are aiming to conclude the season when safe to do so.